Nintendo aims to get back in play

Nintendo's new games console Wii features the Wii-mote, which has a built-in motion sensor. Picture / Reuters

Nintendo once ruled the world of video games but the Japanese company has seen its fortunes fall in recent years as rivals have gobbled up its share of the home console market, particularly in New Zealand.

The company is hoping its new Wii console, to be launched later this year, will reverse this trend.

In the early 90s, Nintendo split home console gaming with fellow Japanese company Sega, but since the entry of Sony with the PlayStation and Microsoft with its Xbox it has seen its global share shrink to 15 per cent.

Sega has since exited the console market and concentrated instead on game production. Nintendo's decline has been even more pronounced in New Zealand, where it has only 5 per cent market, according to the company's local distributor, Monaco.

Nintendo's local decline can be attributed to a lack of investment in the marketing of its brand, Monaco spokesman Ben Ward said.

"New Zealand is its own market and unfortunately Nintendo's investment in the Gamecube brand has been limited."

Sony held top spot in the global console market for 2005 with 101 million PlayStation 2 units sold. Microsoft's Xbox was second with 24 million. Nintendo's Gamecube came third with 22 million.

In New Zealand, Gamecube scraped in with only 10,000 sales for 2005, compared with 140,000 for Xbox and 350,000 for PS2, according to games market researcher GFK.

Nintendo's Gamecube has had poor sales in Australia as well. Nintendo Australia spokesman Vispi Bhopti said home console figures were not available, because "it's not doing so well".

But he didn't think Nintendo's investment in the Gamecube brand in New Zealand had been out of proportion to other countries.

Bhopti said the Gamecube, launched in Australia and New Zealand in 2002, was mainly marketed to gamers, which limited its competitiveness.

Xbox and PlayStation 2 eclipsed Nintendo's initial hold on the gaming market, mainly because both went after larger markets with DVD and internet functions.

But Nintendo's poor showing could change in the fourth quarter of this year, Ward said, with the New Zealand launch of the company's next-generation console, the Wii.

"[It's] like nothing seen before ... Nintendo is looking at attracting a new range of consumers, from new gamers to hard-core gamers."

Wii would continue Nintendo's reputation for innovation by veering away from the traditional game console, he said.

It will compete with the other next-generation consoles - Microsoft's Xbox 360, launched three months ago, and Sony's PlayStation 3, which will be on sale in November.

The console's controller, the Wii-mote, has a handheld pointing device and built-in motion sensor.

If the user is playing a tennis game, for example, they will literally swing the controller like a racquet. The controller also contains a speaker and a rumble device to provide sensory feedback, and is able to receive messages and updates over the internet.

The Wii will also be significantly cheaper than rivals with an expected price of $385. The Xbox 360 retails for about $720 while PlayStation 3 is expected to sell for $1200.

"We are expecting huge sales here," Ward said.

But the move from second to third generation in the home console market will be hotly contested, and Nintendo will have to boost sales substantially to make a gain.

Nintendo's rivals are reporting strong sales and forecasts with their third-generation consoles. Microsoft has sold 11,000 Xbox 360 units in New Zealand since its launch in March, said product marketing manager Tom Hunt.

"In the next 12 months, we are expecting significant growth, and when all the third-generation consoles are on the market, we expect to have just over 50 per cent of the market," he said.

The advantage of the Xbox 360 is its Live function, which enables gamers to connect to the internet through broadband, download game trailers and play with other people.

Warwick Light, Sony general manager for sales and marketing, said the company still expects to continue its domination of the home console market with the November 17 launch of PlayStation 3.

The PS3 will host both Blu-ray high-definition games and movies, while Xbox 360 requires an additional high-definition DVD player for films.