Satoru Iwata rules out a DS/Wii price cut, reviews Wii internal memory, and hints towards future technologies...

Following last week's financial briefing for its FY08 results, Nintendo has recently published the transcript for the Q&A session, containing a number of interesting points, which followed with Nintendo President Satoru Iwata.

Responding to calls for a DS and Wii price cut, Iwata-san hinted that no such move will take place in the current fiscal year, commenting, "We have not made our financial forecast with the premise of a hardware price cut," before adding, "we are not foreseeing the necessity for us to do a price cut in this fiscal year."

Suggesting that Nintendo are looking to change the typical model that relies on price reductions and a four-year life-cycle, Iwata-san mentions the risk of a price cut upsetting consumers that have already bought a Wii or DS.

"I believe that something must be wrong if we conduct our business with the premise that we will need to cut prices of our hardware as time goes on."

Of course the model is that as manufacturing costs come down the price reduces in an attempt to secure smaller chunks of the market during the product's latter life-cycle. Iwata-san even suggests that the reduced emphasis on cutting-edge processors and technology with Wii means that there's less of a margin to cut costs in the future.

"The costs of DS Lite cannot be drastically decreased from now. The costs cut we have experienced before cannot be repeated in the same way. That is how I am feeling today.

Likewise, the costs for Wii are expected to decrease. However, when we compare Wii with other machines, whose core semi-conductor chip comprises a comparatively big share of the costs, there is a difference in how a price decrease of these semiconductor chips contributes to the total price cut, as the chip price is not a dominant factor in deciding Wii hardware's price."

Answering a question surrounding the perceived lack of internal memory with Wii, Iwata-san suggests a review of the situation could be on the cards, "Statistically speaking, it is true that there are a small number of customers who feel that the flash memory is too small, while many others find that they have plenty of memory" adding, "However, because this small number of people are none other than the most avid players, we know we have to review the best possible solution to eliminate their inconvenience."

Responding to the typical concerns over Nintendo's future line-up of titles in particular for the second half of 2008, Iwata-san maintains that it's a deliberate attempt to keep consumers interested.

"Of course, we are preparing for a variety of software for the latter half of this year," adding, "we are now feeling that the speed at which new information is consumed and made obsolete has become quicker than ever. When I think of today's situation as a consumer, when I am exposed to new information too early on, I find that I am already tired of it when the product is launched."

Without revealing any further details on Nintendo's cryptic attempt to put the DS into "public spaces", hinted at last autumn Iwata-san states, "We were not able to complete the necessary coordination with our partners in time to prepare a detailed plan to be shared today. However, it is true that we are making progress, and we think that we will be able to start several experiments in the near future."

Suggesting that it's primarily about people actively using their DS units in the public eye, Iwata-san claims, "We would like to see a situation where DS usage will be ubiquitous, and this, for the short-term, will be the greatest benefit," before adding, "What I can say at the very least is that within this year, we are thinking of starting several projects."

Elaborating on the introduction of WiiWare (launching in Europe on May 20th), Iwata-san suggests that the digital distribution is an exciting but early concept. Beyond the need to open up game development for smaller teams in the hope of finding the next Tetris, Iwata-san revealed that the Japanese giant is seeking to diversify the service with offerings beyond conventional videogames.

"It is possible that companies from completely different industry may start an unprecedented service on WiiWare. As this should be something our partner corporations should announce, I cannot identify their names today, but in Japan for example, we have already received a proposal from a company which has nothing to do with the video game industry for WiiWare software that looks exactly like a Wii Channel. I think there will possibly be WiiWare software that people cannot think as video games at all when they are publicly announced. It is one of the unique characteristics of WiiWare that such software services can be started with a small risk and with a small start."

With the Wii's widespread success amongst a new audience typically attributed to aspects such as Mii's, Iwata-san suggests that it's a concept they're not particularly keen to exploit, comparing licensing Mii's as "identical to licensing Mario". Allegedly they're a result or more than 10 years of effort, and Miyamoto-san himself claims, "Nintendo should grant the license when we can conclude that the proposed project is worthwhile. Should we allow any and all the licensees to use Mii license for whichever projects, Mii's brand image will be hurt. Because we are not granting Mario license to any and all, we should not do so with Mii either."

With the Wii and DS Nintendo widely acknowledged as heralding Nintendo back to their innovative best, Iwata-san suggests that Nintendo are not beyond looking at its competitors should innovation stem from them.

"When another company comes up with an idea that can totally surprise customers, our way of thinking on what we should do might be altered. So, as principle, we would like to generate such (factors to initiate the new product cycle) from among ourselves, but we cannot say for sure that the trigger won't result from action of other companies."

Referring to recent suggestions of a motion-controller for the Xbox 360, Iwata-san seemingly brushes off such concerns, "All I can say today is, it is not that easy to develop software which leverages the characteristics of Wii Remote."

"We are not concerned about what other companies may do but rather more concerned with presenting them with new ideas to our customers based on the prospect that our existing customers will surely get tired of the plays enabled by Wii Remote if we do not try to improve the experience. In other words, what matters to us is whether or not we can continue to constantly create and offer new surprises one after another. If we can, then (other company's attempt to launch Wii Remote-like controller) should not be a big threat. The efforts in this field to try to appeal to a wide variety of customers are something in which we saw potential early on and that we have been working on the longest, so there appears to be no reason whatsoever why we need to be concerned."

Responding to the recent mergers and acquisitions spreading throughout the videogame industry, Iwata-san remains steadfast that Nintendo will not enter into such actions unless necessary.

"Sometimes, some people say that Nintendo's position will become even more solid if it purchased software companies by M&A, but I have no such intention because buying such companies will not contribute to strengthening Nintendo in the true sense. I believe that it is not the company but the skills of the employees that matters most, and therefore regard M&A as meaningless.

There are the cases where M&A is effective. For example, if a company holds a very important patent that Nintendo wants to obtain that will help fight future battles in the video games business with a huge advantage, that would be a time when Nintendo would consider the possibility of M&A."

Finally, whipping Nintendo fanboys into a stupor, Iwata-san reveals, "Of course, there are technologies and rights that we are paying special attention to, but we cannot disclose them."

It also seems that a new Fire Emblem title could be on the cards.