Nintendo's director of corporate planning Satoru Iwata explains, "Nintendo is known for great gaming and our first priority is to continue that legacy. 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. 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."
The company is continually reiterating that its network strategy revolves around the philosophy that online gaming will be most successful when the entire service is both highly compelling and affordable. Nintendo says that this first step towards that successful plan includes a flexible development program, an encouraging publisher business model, and total support for all consumers with the dual release of both a 56k compatible modem and the Ethernet-ready Broadband Adapter.
Nintendo of America's newly appointed executive vice president, sales and marketing, Peter MacDougall notes, "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. 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."
Currently Nintendo's is already taking an active role in getting developers to support GameCube's online plans and is making software development kits available to developers worldwide. It is further in discussions internationally with "world-class" developers about its online projects. As an added incentive, publishers will not be required to pay any sort of royalty fees from revenue generated by their online GameCube software. The goal is to bring a low-risk online model to the table, thus encouraging more projects.
Nintendo itself has announced no first-party plans for online software, but says its internal development groups are researching online projects. Nintendo makes mention that none of these will be demonstrated or discussed at this year's Electronic Entertainment Expo to be held in Los Angeles from May 22-May 24.
Furthermore, no plans were revealed as to exactly how gamers will get online, be it via one unified online service or something entirely different.
We'll have more as it develops.