which of course, will be using for the first time, a graphics
processor designed by ATI




Nintendo plans new game product
Thursday, August 7, 2003 Posted: 9:47 AM EDT (1347 GMT)


TOKYO, Japan (Reuters) -- Game Boy creator Nintendo said on Thursday
it will reveal details of a new game product next year but was coy on
details, only saying it will be a surprise.

"We are preparing a new product which will give a fresh surprise to
consumers," President Satoru Iwata told a news conference on the video
game maker's business strategy.

Iwata said the announcement would be aimed at helping investors
understand where the industry veteran is heading and what it is
focused on.

Poor explanation, poor results
Iwata said a poor explanation about Nintendo's mid-term business
strategy was partly to blame for a plunge in its share price after
archrival Sony Corp unveiled plans to launch its own handheld game
device in 2004 which will play music and movies.

"Basically I believe Sony's multi-function handheld device will not
have big impact on our business, but we are, whether Sony releases a
new product or not, preparing for our future...and we'll be able to
tell you specifics next spring," he said.

Asked if it would be a next-generation game console or software, Iwata
declined to specify. It was also unclear when the product would go on
sale.

Nintendo's once dominant position in the home console business has
been hacked away by rival Sony, whose PS2 can be found in more than
five times as many homes as its GameCube.

Keeping up with competitors
The industry veteran also faces a formidable challenge on handheld
devices, its key earnings driver, as Sony plans to launch the handheld
device, PSP, by the end of 2004.

In January, Iwata said that Nintendo was developing a next-generation
home video game console and aimed to launch it in 2005 or 2006, in a
bid to restore its clout in the lucrative video game market.

Iwata told the news conference Nintendo plans to strengthen its
marketing by introducing a points system similar to frequent flier
schemes for air travellers, in which consumers would accumulate points
by buying its software.

"We plan to begin the new programme in Japan and the United States by
the end of this year. We aim to have 300,000-500,000 users to sign up
for the programme in the first year after release," he told reporters.

Customers who buy new games can register in the programme, called
"Club Nintendo," and accumulate points which can be used for items
related to Nintendo's games.