Nintendo Reveals Online Gaming Plans

Modem And Broadband Adapters To Launch This Fall

Nintendo's network strategy is built on the philosophy that online will be most successful if the game play is extremely compelling and highly affordable. To match this philosophy, Nintendo's initiative consists of a flexible development program, favorable publisher business model, and support for all consumers whether the player connects by modem (narrowband) or broadband.

"Nintendo is known for great gaming and our first priority is to continue that legacy, " explains Satoru Iwata, director, corporate planning, Nintendo Co. Ltd. "Game content developed with that sole mission will enhance the joy of video gaming."

"The profitable part of the online business is very likely several years away. Entering the business because it's the hot topic of the day doesn't make a profitable business nor satisfied customers," Iwata adds. "That's why it will be a part of Nintendo's strategy, not the mainstay, as other companies are attempting to do. There still are too many barriers for any company to greatly depend on it."

Nintendo currently is making software development kits available to developers worldwide. It will begin selling both the NINTENDO GAMECUBE v.90 Modem Adapter and the NINTENDO GAMECUBE Broadband Adapter this fall at retail for an MSRP of $34.95 each.

"We understand the strong appeal of online gaming to a select group of video game players, and indeed, it's one way to increase their satisfaction in exploring new types gaming," says Peter MacDougall, executive vice president, sales and marketing, Nintendo of America Inc. "To make online more appealing to the rest of the game-playing population, we're taking concrete steps to aid our development partners in overcoming some of the inherent technical and financial obstacles to successful online games."

As part of an incentive to publishers, Nintendo will not require royalty fees from revenue generated by a publisher's game played online through the NINTENDO GAMECUBE. Nintendo is in discussions worldwide with a large number of world-class developers about online projects. The intent of the low-risk model is to encourage developers to consider new genres of games for online play. Several of Nintendo's internal development groups also are researching online projects, but none will be demonstrated or discussed at this year's E3.

As the worldwide leader and innovator in the creation of interactive entertainment, Nintendo Co. Ltd., of Kyoto, Japan, manufactures and markets hardware and software for its popular home video game systems. The systems include Game Boy(R), Nintendo(R) 64, Game Boy Advance and NINTENDO GAMECUBE. Since the release of its first home video game system in 1983, Nintendo has sold more than 1.4 billion video games worldwide, creating enduring industry icons such as Mario(TM) and Donkey Kong(R) and launching such franchises as Zelda(TM) and Pokemon(R). As a wholly owned subsidiary, Nintendo of America Inc., based in Redmond, Wash., serves as headquarters for Nintendo's operations in the Western Hemisphere.