Profile: Satoru Iwata

The Industry According to Iwata

As Satoru Iwata settled into his role as NCL's president, two things became apparent. Firstly, Iwata shared Yamauchi's concerns about the current state of the video game industry. And secondly, Iwata was determined to do more than talk; he wanted to implement Nintendo's vision for the industry at every level, from games to hardware.

Iwata's view of the industry has been criticized by various observers in the media on several occasions; he has been criticized for being slow to warm to online gaming and for suggesting that game designers need to place a greater emphasis on simplicity, in a time when games are becoming increasingly complex. In terms of online gaming, Iwata feels that the current model for delivering online games isn't suitable for Nintendo. Despite the fact that Iwata does not see online gaming as the "be all and end all" of the industry's future, he does acknowledge that Nintendo would like to deliver online games at some point. However, unlike its competitors, the ideal model for Nintendo would be a system where games could be played online for free (that is, there would be no extra cost incurred after a player purchases the software). In one interview held in 2002, Iwata elaborated on his concerns in regard to online gaming. "The thing about online is that people are talking about it and bringing it up as this kind of direction for gaming," said Iwata, "but the fact of the matter is that many aren't really paying attention to a lot of the hurdles that have to be jumped before online becomes viable. One of the biggest ones, I think is, what's really going to be the penetration for broadband connections around the world? Where is that going to be in a few years? So people are talking about this and seem to focus only on online, but they fail to answer many of the questions surrounding it."

Iwata continued, "We have a lot of experience in online as I'm sure you're aware. We think very positively about the possibilities. We've done a lot of online experiments in the past. But until these hurdles are met and these problems are solved, I don't think that we should just jump into online because people think there's strength there right now. So we're certainly not in a position where we can say 'there will be an online Mario Kart in 2003.'

Perhaps the most telling summary of Nintendo's online policy can be provided by Iwata himself: "We're not negative toward the idea of going online. We're just practical."

In addition to the ever-popular online issue, Satoru Iwata has expressed serious concerns with the direction that the video game industry is heading, in terms of new software development. Specifically, Iwata is concerned about the increasing complexity of games and what this means for game developers such as Nintendo. In addition, Iwata has previously explained that as games become more complex and sophisticated (and as gamers themselves grow older and go through a change in personal tastes), the industry starts to become saturated with certain types of games (perhaps this could be considered a reference to games such as Grand Theft Auto, and the various games that have followed its lead). In an effort to support his view on the state of the industry, Iwata has mentioned Pokemon several times, citing that the franchise has sold well over 10 million GBA games worldwide, even though the games do not feature highly sophisticated 3D graphics. This, suggests Iwata, is evidence that simple concepts and truly fun ideas can be enough to attract a diverse audience.

"Although many believe that technology automatically enables more realistic expression, I believe that is just not correct." -- Satoru Iwata

Perhaps the most significant contrast between Nintendo and its competitors can be found with the Nintendo DS and Sony's PSP. Whereas the PSP is essentially a portable PlayStation 2 console, with highly sophisticated graphics, the DS is Nintendo's attempt to create something entirely unique. The philosophy behind DS itself is simple; games have become increasingly complex since the early days of the industry and now, Nintendo wishes to "bring gamers back to the start line of 20 years ago." In a sense, the DS is almost the epitome of Nintendo's vision for the future, which could explain why Hiroshi Yamauchi had said that Nintendo would be crushed if the machine fails in the market. Of course, if the DS were to fail in the market, this would not be enough to bring down Nintendo itself. However, it would definitely call the company's overall philosophy into question.

Nevertheless, it's early days yet for DS. And therefore, Satoru Iwata's application of Nintendo's ultimate vision for the industry is still unfolding before our very eyes. Of course, DS itself is just part of the equation. As Nintendo's competitors move into the next generation with consoles that promise to integrate even more non-game-related functionality into their designs, Satoru Iwata himself has left us with the promise of what amounts to an enormous one-two punch from his company; the first being Nintendo DS, the second being GameCube's successor, codenamed "Revolution." At this year's E3, Iwata mentioned that the new game console's codename is based on its central goal: to create a gaming revolution.

It is true to say that at this point in time, Nintendo is at a crossroads. Satoru Iwata has made his company's position clear; Nintendo will not simply follow its competitors. It will instead create its own path, with the goal of reconnecting gamers to the feeling of wonder and excitement that they had when they first played classics like Super Mario Bros. and The Legend of Zelda for the first time.

N-Sider and IGN would like to wish Iwata-san the best of luck in his career. We have no doubt that he is more than capable of leading Nintendo into the next generation and beyond.

Thanks to Businessweek, Bloomberg, Famitsu, MobyGames, Computer & Video Games, GamePro, EDGE Magazine, GB-Advance Magazine and nDream. Also, a big thanks to Glen Bayer and Anthony JC for their support.

Written by James Burns.