Q: Do you think the next generation of consoles can bring back the level of sales we saw in 2008?
Bing Gordon: I think it's possible. One of the things that we saw in from '95 to '08 was that a high percentage of console gamers owned two. If you were a family with young kids you only owned Nintendo. Other than that, Nintendo always had a great game so real gamers felt liked they had to own a Nintendo no matter what. Maybe PlayStation and Xbox you only had to have one of them. For a while there you owned Xbox for shooters and Halo, and Sony for sports and cars.
We may have now reached a point where a lot of gamers are back to feeling like they only have to have one. Back in the days of Nintendo versus Sega most gamers felt they only needed one TV system, and then of course everybody kind of needed a GameBoy. We may have the same number of households, and the same tie ratio of systems, but fewer systems per house. I think handhelds are going to come under pressure from phones, and TV's going to come under pressure from tablets. I think what's going to happen is increasingly consoles are going to be primarily 3D systems rather than all, and handhelds will be primarily puzzles rather than all. Just as we saw back in the day with PCs, PC games began losing categories. I think we're kind of beginning, like PCs - PCs lost categories over a decade - we're probably starting to see the beginning of attrition of categories on console. That said, Xbox Live is a consumer miracle.
Q: What do you think of the Wii U's chances this Christmas and beyond, especially facing tablets like the Nexus 7 for $199 that are pretty good game devices? Is that going to make it tough for the Wii U?
Bing Gordon: I think Nintendo's already on track to become primarily a software company. We saw that with Sega back in the day; Sega made some missteps and became primarily a software company. Nintendo hasn't really made missteps, Nintendo probably has better creative talent and better leadership now than Sega did. It's got the most robust business model, the best creative talent; Miyamoto's still the best in the business. Apple's most directly competitive with Nintendo. So far, when Miyamoto makes a perfect game, in his career he makes games worth $200 - it's worth buying a system for. I think the handheld is going to be under a lot of pressure. I can imagine a day when Nintendo wonders - and maybe it's generational change - when Nintendo wonders if they ought to take some of their best games and make 'em apps.