Nintendo wants to move 50 million GCN units?

TOKYO (Reuters) - Japanese video game giant Nintendo Co Ltd said on Thursday it aimed to sell 50 million of its GameCube game consoles globally by March 2005.

It still has a long way to go, however, to catch Sony Corp\'s PlayStation 2, the dominant home video game platform worldwide with more than 30 million units shipped since its debut in March 2000.

Nintendo launched the GameCube last September and has set a shipment target of 12 million units for the business year that started in April, compared with Sony\'s target of 20 million PlayStation 2s.

President Satoru Iwata reiterated Nintendo\'s strategy of appealing to consumers with innovative games, rather than trying to build ambitious entertainment platforms like Sony\'s PlayStation 2 and Microsoft Corp\'s Xbox.

"We\'re reaching the limits of how far we can appeal to consumers by boosting the machines\' performance or providing more compelling graphics and sound," Iwata told an analysts\' meeting.

"For the past few years we\'ve been looking for new ways to surprise people, new ways for them to have fun."

Sony, Nintendo and Microsoft all announced hefty price cuts last month for their cutting-edge consoles, aiming to expand their customer base as they jostle for the fat profits to be earned from software sales.

Iwata expressed concern, however, that the price-cutting fever in hardware may spread to software, where it could do severe damage to game makers\' bottom lines.

"We have a sense of crisis, that price cuts in software could destroy the game industry," he said.

He also defended the company\'s policy of maintaining a huge hoard of cash rather than investing it in new businesses or elsewhere.

"We have 900 billion yen ($7.25 billion) but one of our rivals, Microsoft, has five trillion yen," he said.

"This is a high-risk business...There may come a time when we would have to make intensive investments."

Nintendo\'s shares ended 0.58 percent lower at 17,100 yen on Thursday, in line with a 0.76 percent drop in the benchmark Nikkei average.

They fell as far as 16,710 yen in the afternoon, their lowest since last September, and have shed more than a quarter of their value since the start of the year, due in part to worries about price competition.

I\'ll be surprised if Xbox and GameCube combined sell that many worldwide by early 2005..

Well, the Cube drops price this month in Japan I believe.  Additionally, from August on through February, the Cube has its cream of the crop games released to the public.  If a price drop and those games doesn\'t move consoles, then I don\'t know what will.  Maybe if Enix said DQ8 on the cube...?  

I think it\'s oh so possible...the videogame industry has grown and continues to outpace the movie industry!!

With price drops in effect, amazing software to appeal to just about anyone...those numbers look reasonable.

Iwata expressed concern, however, that the price-cutting fever in hardware may spread to software, where it could do severe damage to game makers\' bottom lines.

"We have a sense of crisis, that price cuts in software could destroy the game industry," he said.

I\'m concerned about this...I honestly think 50$ is too high.  Sony has it right @ 40$.  

[rant]I actually think that by cutting into their profits, they would be more hard pressed to make a better game.  They want an audience, then work for it.  None of this Gunvalkyrie, Bloodwake, Azurik, Wreckless crap...don\'t read me wrong, some of those games are okay (or have good qualities), but had lots of potential to be great[/rant]

early price cuts eat thru a profit margin like mad

im sure m$ and nintendo have plenty of cash to buffer it

besides, it software that will save them in the long run

Well I hope they meet there goal, but it seems like sony has claimed japan. I mean psx outselling xbox and gamecube. Seems like unless they slap and sony logo on the back of there console just won\'t move enough units.

Hmmmmmmmmmm..................i wonder what sony is going to be at 5 years from now?:thepimp: :thepimp:

dominating with PS3

Probably wallowing in their wealth and success with cell technology.

Originally posted by mm
dominating with PS3

True and by then ps2 would probalby have shipped about 100 million or so.............:thepimp:

They better make a deal with McDonalds were every kiddie meal comes with a GC.   I kid, I kid.

Sounds reasonable to me (as long as they are talking about the total life of the GC). Though I expect the PS2 to pass that way before the GC gets close.

"We have 900 billion yen ($7.25 billion) but one of our rivals, Microsoft, has five trillion yen," he said.

Talk about rich companies.:eek:

The GC may hit 50 million...but no more.

I have a feeling it will sale like the N64

Originally posted by Clowd
The GC may hit 50 million...but no more.

Why would it hit 50 million, then stop?

I have a feeling it will sale like the N64

Since you seam to be shut off from anything but PS/PS2, I would like to know if you are aware of how N64 sold.

Its possible.. If they kick out Xbox and manage to stay alive.. :cool: