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With Nintendo's new DS handheld now on the market in North America, the company can turn its full attention to the hardware's upcoming Japanese release, set for December 2. Speaking to Nikkei Net, Nintendo president Satoru Iwata recently outlined some of the company's expectations for the new handheld's first month in Japan, as well as its plans for the coming year.
Iwata echoed reports of higher-than-expected orders for the DS in Japan, saying that retailers have placed orders for more than two million units of hardware. By expanding production to a third facility in China, Iwata said, Nintendo will be able to ship "a little more than one million units" by the end of December.
He avoided commenting directly on the imminent arrival of competition from Sony, however. "Since I haven't seen a real PSP, I can't say anything at all. Put simply, the intention of this company is not to fight over dividing up a limited market. It's time to expand the market with new ideas," Iwata said. He pointed to Nintendo's television advertising campaign for the DS in Japan, which attempted to create a feeling of newness and mystery surrounding the hardware, and was then balanced by the Touch!DS event campaign, which let the public get its hands on the DS and become familiar with it before committing to a purchase.
Asked about the possibility that the DS may cannibalize some of the market for Nintendo's Game Boy Advance SP handheld, Iwata pointed out that with recent price drops in North America, the SP is now nearly half the price of the DS. That's a comfortable margin for the SP to keep selling, he said.
Nikkei also had a brief comment from former Nintendo president Hiroshi Yamauchi, now a senior advisor to the company, regarding its recently-announced interest in expanding into the animation business in 2005. "If we can combine game software and animated movies, the creation of a new entertainment market is possible, which we think will contribute to Nintendo's continued growth," Yamauchi said.
Yamauchi added that the two screens and other hardware features of the DS were conceived with such a fusion in mind. Nintendo's already planning some crossover marketing between its movie spinoffs and the new handheld -- some theaters will beam data to players' copies of Pokemon Dash for the DS during next spring's new Pokemon animated movie -- but that may just be the tip of the cross-promotion iceberg.