In May 2004, when Nintendo of America's then-executive vice president
of marketing Reginald Fils-Aime took the stage at the Los Angeles
Electronic Entertainment Expo and declared "My name is Reggie. I'm
about kickin' ass, I'm about takin' names, and we're about makin'
games," a videogame industry star was born. And for a fanbase that had
been demoralized by the company's loss of market share and cool factor to not only
Sony but also Microsoft, Fils-Aime's brash, unapologetic confidence in
the Nintendo's heritage and prospects was the shot in the arm Nintendo
console fanboys needed.
Since his arrival at Nintendo at the end of
2003, we've had the good fortune of being able to chat with Fils-Aime,
or Reggie as he's more commonly known, on a fairly regular basis, both
formally and informally. We sat down with him again at last month's
Game Developers Conference in San Francisco, just after our chat with
Nintendo general manager and chief design guru Shigeru Miyamoto (click
here for that interview.) Here in Part I, we discuss how the Wii won
back the support of developers and publishers that had abandoned the
Gamecube, whether Fils-Aime should have engaged us in a James "J"
Allard-style wager over the relative success of DS and PSP, and what,
if anything, he and his company must do to make their platforms more
viable for third party publishers.
Since you've been at Nintendo and been
doing these interviews with me, you've undergone quite graciously and
with good humor some tough grilling and tough questions. So I think
it's only fair that I give you the opportunity to do a little victory
lap. So I'll pose a question to kick it off. When
you took the job with Nintendo, looking at where you're at right now,
how much of that success did you know was going to happen, and how much
of it was faith?
You know, I would say a large part of where we are today, I anticipated
with hard work, with great products, based on a very early conversation
that I had had with Mr. Iwata before I had even come on board. So much
of this is planned. Now it always helps with some level of serendipity,
some things that you can never quite anticipate, and we've had some of
that both in our success with DS and the Wii. But make no mistake, our
success has been thought through, planned, and we've been fortunate in
being able to execute as well as we have.
So there were no moments of crisis, no moments of "O Gods of the
Console, why hast thou forsaken me?" When you were going out to meet
with developers, meet publishers, and based on Nintendo's recent
history, you were seeing a certain amount of skepticism, a certain amount
of blank faces, a certain amount of polite "Yeah, we'll get back to
you," but not necessarily seeing the conversion, the belief, the come
to Jesus moment among them. What was it like when you would go out and
have that kind of response?
You know, it was certainly a lot of hard work involved. I'll tell a
story. Early in my tenure, I went to an event sponsored by Ziff-Davis
and had the opportunity to spend time with a number of different
publishers. And in the three days of that conference, I spent quite a
bit of time with one particular publisher, partly for me to learn the
business, but also partly to see how they saw Nintendo and to talk
about business opportunity. That publisher was Ubisoft, that executive
was Laurent Detoc, and I do believe that that conversation helped sow
the seeds for a much better relationship that we have not only with
Ubisoft, but with many, many publishers.
It was based on a clarity of Nintendo's own vision for where we wanted
to go, the clarity of a business case that made sense for publishers,
and on the part of certain executives, a betting that we
would actually deliver the way that we have. So make no mistake N'Gai,
it's been hard work, there have been tough conversations and it's not
always been a bed of roses, so to speak. But we have worked very hard
to get to where we are, and frankly, given some of the challenges we've
had in our history, I think it makes us very humble, and it makes us
acknowledge that we have to work even harder in the future to maintain
the momentum.
Well, I've spoken with Laurent, and from his perspective, he says that
that he'd been actively pursuing. He'd long been a fan of Nintendo
products, long been a fan of Mr. Miyamoto's work and really wanted to
be involved with your company. He was a big fan of Juana Tingdale's,
and they'd had a business relationship that went way back. That's good.
But I'm thinking more of developers and publishers where it may have
been a little more adversarial.
There was a period before your arrival, where George Harrison, if I'm
not remembering it wrong, said on stage "Mario will never kill
hookers," or something like that. It was a shot at the very capable,
talented and successful gentlemen at Rockstar. Now since then,
following your arrival, not much activity from Rockstar on Gamecube.
But now, we see Manhunt 2 coming to the Wii. Can you give us a little
insight into how that got repaired and sewn up to now where you're
getting a game that really doesn't seem very Nintendo?
You know, I think all of the publishers from EA and Larry Probst and
the meetings that I've with him to Take-Two and the conversations with
Paul Eibeler, I think what they all respect is my candid approach to
talk the realities of the business, the realities of where Nintendo
wants to go, and the fact that as publishers, they represent critical
opportunities to us that frankly Nintendo by itself cannot take
advantage of. We need EA, Rockstar, all of the various entities,
because they bring content that we just don't do. In the case of
Take-Two and Rockstar, it was a series of conversations, predominantly
with Paul Eibeler, around what made sense for them, what makes sense
for us, and frankly, those conversations continue.
I fully expect we
will see even more support out of Take-Two in total. They have
fantastic capabilities in sports--sports other than the Mario genre of
sports Nintendo doesn't do--so it's a match that needs to happen. I
can't speak to what George may have said from the stage, what I can say
is that publishers and developers respect a straightforward approach
that makes sense for them and makes sense for Nintendo. And I think
that's what I've been able to bring to the party and to help drive some
of those relationships.
Now one of the--well, I was going to say points of contention, but
let's just say things that we've discussed repeatedly in our
interviews--is third party support: where is it, when is it coming,
that sort of thing. You and I have been having this conversation even
as it was clear that there was an uptick in the DS business: it was
going to be good, then it was going to be great, it was going to
outstrip Sony, which is not what I had predicted in terms of the DS vs.
the PSP.
Too bad we didn't make a bet on your dreadlocks or some other item. [Laughs.]
I agree. [Laughs.] We won't name names, but at this table, at least,
there are two honorable men speaking. Others are perhaps less so. Back
to the DS, even as this success was taking place, I was looking at the
numbers and seeing that the business opportunity for third parties on
Nintendo's platforms continues to be very challenging. Now with the Wii
launch, the third party support was there, we've talked about it; there
is third party software that's doing well. But look at the history. The
DS is a more mature platform, and still very much a challenge for third
party publishers.
My question to you is, is there anything that Nintendo can, should or
must do in order to help third parties in general, or certain key third
party products? I don't know if it's a Miyamoto's Choice Award, or
Iwata's Choice Award, or maybe Reggie's Kick Ass-Take Names Award, that
can somehow convince your installed base, your active Nintendo fans, to
take a closer look at good third party products that sometimes get
overlooked?
You know, N'Gai, I think there's three parts to your question. First,
as you look at Nintendo DS, how did third party support come on board,
where does that go to? I think that with the DS, third party support
that truly took advantage of the DS functionality--touch screen, two
screen, wireless--was slower in coming. But as those games come on
board, they're selling very, very well. Final Fantasy III on DS, it's a
million unit seller in Japan; here it's at this point probably a
half-million unit seller. It took a classic game, remastered it for the
DS, put in place some of the good functionality, and it works. As we see
more of that on the DS, we will see more and more licensee
participation, and from a Nintendo perspective, we love that.
For the Wii, because of the history that we created with DS, it was
certainly easier to get licensees to jump on board right at the very
start. We're pleased that given the data that has been published so far
from NPD that two out of every three games bought on the Wii are
licensee titles, That's fantastic for us. Where that goes in the
future, which is the third part of your question, we acknowledge that
Nintendo needs to do a better job sharing technical expertise and
sharing insight from our own creative process, especially with key
publishers that are choosing to invest and partner very heavily with
us. That's a commitment by Mr. Iwata, that's a commitment by Mr.
Miyamoto, and the good news is that it's happening right now. It won't
be some sort of award, at least not yet, but what we are doing is
having our very senior developers spend time with publishers and their
development arms helping them understand our platform, and hopefully
leading to better games. We think that's the best way to leverage our
own knowledge and expertise in a way that'll create fantastic games for
the consumer to enjoy on our platforms.
Next: We challenge Fils-Aime's
assertion that the difficulties third parties face on Nintendo
platforms is solely an issue of product quality. He in turn challenges our
depiction of his now-famed "Read my lips" pledge that the Wii would not
suffer from the legendary Nintendo drought. And we challenge you to share your thoughts on these topics in our message boards.