Nintendo *finally* announces concrete Online Game Plans
by Julius Bautista

Monday, May 13, 2002

Modem AND Broadband GCN adapters will sell for US$34.95 each this fall.

---Nintendo Press Release

REDMOND, Wash., May 13, 2002 – Nintendo of America Inc. unveiled plans for its online gaming initiative for NINTENDO GAMECUBE™, slated to begin this fall. The first announced product is Phantasy Star Online™: Episode I & II from SEGA® launching this fall in North America. SEGA’s game will be playable at the upcoming Electronic Entertainment Expo (E3) starting May 22 in Los Angeles.

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.