Nintendo Admits: Wii U Will Not Compete Against PlayStation 4, Xbox Next
[01/31/2012 08:50 PM]
by Anton Shilov

Nintendo has admitted that while its forthcoming Wii U game console will support high-definition graphics and will be rather powerful, it will not be able to compete with the next-generation systems from Microsoft Corp. or Sony Corp. in terms of performance as they will be ultra-powerful. Instead, Nintendo calls its approach balanced as it features both improvements and exclusive technologies.

"There are a variety of different ways to show the unique appeal of software. What's important here is not to narrow down what we can do. Rather, we have to create the dynamic range of appeals that the consumers can appreciate. We decided to make a proposal of an additional screen into the Wii U controller because developers could think of a variety of different possibilities here and there of using both a big TV screen and a screen in a player's hand," said Satoru Iwata, the president of Nintendo, during a conference call with investors.



Nintendo's approach with the original Wii was similar: to make a unique game system that would be not directly competing with more powerful devices by companies with a lot more financial and other resources. Nintendo did succeed in that, but had to sacrifice product cycle comparable to PlayStation and Xbox as well as the market of hardcore games. With Wii U, Nintendo hopes to regain core gamers thanks to improved performance and slightly different approach of work with game designers that is projected to yield into higher amount of titles for the new console. What Nintendo clearly did not want to do was to create a competitor for the next breed of systems: PlayStation 4 and Xbox Loop.



"We are aiming to make a system which shall not be forced into competing with the others where the contenders can fight only with massive developer resources and long development times as their weapons. Having said that, however, as I mentioned, it is true that, in some software areas, we need to be engaged in the power games. Take The Legend of Zelda franchise, for example, the fans must be looking for the graphic representations that they do not see as cheap at all when the title is released for the Wii U," added Mr. Iwata.

A third-party game developer has confirmed that Nintendo's approach for working with third-parties has changed dramatically. Apparently, Nintendo is constantly adjusting firmware and hardware of Wii U in accordance with demands from game designers.

"They asked us what we would want from the hardware, and when we give them feedback we can see that they have definitely listened and making changes. The hardware is still changing constantly," said Yosuke Hayashi from Team Ninja, in an interview with Eurogamer web-site.

LINK

http://www.xbitlabs.com/news/multimedia/display/20120131205013_Nintendo_Wii_U_Is_Not_a_Brute_Force_Console.html

So odd how things work,the Wii also wan´t supposedly competing with the 360 and PS3 and yet it completely ravaged them.

[QUOTE="WesleyUden"]Haha it's getting really funny with these articles. Nintendo says something and the title of the article is the complete opposite of what is stated. Krelian-co

actually the tittle of the article was "wii u is not a brute force console" but the #1 retard of the forums ofc had to misled and missinformate people.

Actually i only copued the GAF thread

http://www.neogaf.com/forum/showthread.php?t=461487&page=2

So odd how things work,the Wii also wan´t supposedly competing with the 360 and PS3 and yet it completely ravaged them.

Arach666

The Wii was too weak in the end though.

They just took out carefully selected parts from the Q&A transcript and "misinterpreted" what Iwata was saying, anyway carry on.

That article is such BS, sounds like it's written by a Nintendo hater. Where did they get this "brute force" from?SaltyMeatballs

Nintendo is basically saying that they don't plan to compete in the power game, and they will use other means as weapons instead of long development times / budgets which are required for "rich" graphics, they will instead leverage the new functions of the system's features such as online and controller.

However they will still do these "big" titles for games like Zelda.

In other words, Mario Kart, Wii Sports 3 and NSMB Mii (i.e. the majority of Nintendo games) won't try to compete in the high end department.

[QUOTE="Krelian-co"]

[QUOTE="WesleyUden"]Haha it's getting really funny with these articles. Nintendo says something and the title of the article is the complete opposite of what is stated. loosingENDS

actually the tittle of the article was "wii u is not a brute force console" but the #1 retard of the forums ofc had to misled and missinformate people.

Actually i only copued the GAF thread

http://www.neogaf.com/forum/showthread.php?t=461487&page=2

Nintendo would be foolish to compete against PS4 and Xbox 3.They are using their innovations and creativity to compete against PS6 and Xbox 5 with their controllers,swhich is practically a window into a virtual reality.If Sony still uses Dual Shock for PS4 it will be like still playing PS1 games in 1997 with a liitle bit better graphics.

"There are a variety of different ways to show the unique appeal of software.What's important here is not to narrow down what we can do. Rather, we have to create the dynamic range of appeals that the consumers can appreciate.We decided to make a proposal of an additional screen into the Wii U controller because developers could think of a variety of different possibilities here and there of using both a big TV screen and a screen in a player's hand," said Satoru Iwata, the president of Nintendo, during a conference call with investors.



With Wii U, Nintendo hopes to regain core gamers thanks to improved performance and slightly different approach of work with game designers that is projected to yield into higher amount of titles for the new console.What Nintendo clearly did not want to do was to create a competitor for the next breed of systems: PlayStation 4 and Xbox Loop.



"We are aiming to make a system which shall not be forced into competing with the others where the contenders can fight only with massive developer resources and long development times as their weapons.Having said that, however, as I mentioned, it is true that, in some software areas, we need to be engaged in the power games. Take The Legend of Zelda franchise, for example, the fans must be looking for the graphic representations that they do not see as cheap at all when the title is released for the Wii U," added Mr. Iwata.

LINK

http://www.xbitlabs.com/news/multimedia/display/20120131205013_Nintendo_Wii_U_Is_Not_a_Brute_Force_Console.html

loosingENDS

Sold?

Sounds like nintendo trolled the other companies into thinking they were only going with casuals when they really intended to just make the gaming market bigger and refocus on core gaming all along.

That's how I would like to see the wii (as a Trajan horse) and read these comments. I think they are subtly trying to disarm the competitors and then bamm they come out with tons of core games while the other companies are still fumbling trying to come up with the next casual craze and get left behind. I can understand if you are reading it another way.

This is more refering to Nintendo's 1st party output, not the actual hardware of Wii U. They will deliver on the hardware front, so that they can appeal to the hardcore from a 3rd party perspective.

Basically 80% of Nintendo's games will be up-ressed Wii games with better textures and less jaggies. Because the selling point of them is not graphics, I belive the SW term for that is gimmicks.

But for Zelda/Metroid/3D Mario, they will make sure that they don't "look cheap".

This is more refering to Nintendo's 1st party output, not the actual hardware of Wii U. They will deliver on the hardware front, so that they can appeal to the hardcore from a 3rd party perspective.

Basically 80% of Nintendo's games will be up-ressed Wii games with better textures and less jaggies. Because the selling point of them is not graphics, I belivethe SW term for that is gimmicks.

But for Zelda/Metroid/3D Mario, they will make sure that they don't "look cheap".

SuperFlakeman

[QUOTE="loosingENDS"]

"There are a variety of different ways to show the unique appeal of software.What's important here is not to narrow down what we can do. Rather, we have to create the dynamic range of appeals that the consumers can appreciate.We decided to make a proposal of an additional screen into the Wii U controller because developers could think of a variety of different possibilities here and there of using both a big TV screen and a screen in a player's hand," said Satoru Iwata, the president of Nintendo, during a conference call with investors.



With Wii U, Nintendo hopes to regain core gamers thanks to improved performance and slightly different approach of work with game designers that is projected to yield into higher amount of titles for the new console.What Nintendo clearly did not want to do was to create a competitor for the next breed of systems: PlayStation 4 and Xbox Loop.



"We are aiming to make a system which shall not be forced into competing with the others where the contenders can fight only with massive developer resources and long development times as their weapons.Having said that, however, as I mentioned, it is true that, in some software areas, we need to be engaged in the power games. Take The Legend of Zelda franchise, for example, the fans must be looking for the graphic representations that they do not see as cheap at all when the title is released for the Wii U," added Mr. Iwata.

LINK

http://www.xbitlabs.com/news/multimedia/display/20120131205013_Nintendo_Wii_U_Is_Not_a_Brute_Force_Console.html

casharmy

Sold?

Sounds like nintendo trolled the other companies into thinking they were only going with casuals when they really intended to just make the gaming market bigger and refocus on core gaming all along.

That's how I would like to see the wii (as a Trajan horse) and read these comments. I think they are subtly trying to disarm the competitors and then bamm. I can understand if you are reading it another way.

What Nintendo did in 2 generations, MS did in 2 years with Kinect

They grabbed a huge casual market share in 2011 and now all their games are core games in 2012

And of course 720 will be same case, have all the casual market by default and focus only on core games

The difference is that no 3rd party developer will support WiiU after 720 is out

[QUOTE="casharmy"]

[QUOTE="loosingENDS"]

"There are a variety of different ways to show the unique appeal of software.What's important here is not to narrow down what we can do. Rather, we have to create the dynamic range of appeals that the consumers can appreciate.We decided to make a proposal of an additional screen into the Wii U controller because developers could think of a variety of different possibilities here and there of using both a big TV screen and a screen in a player's hand," said Satoru Iwata, the president of Nintendo, during a conference call with investors.



With Wii U, Nintendo hopes to regain core gamers thanks to improved performance and slightly different approach of work with game designers that is projected to yield into higher amount of titles for the new console.What Nintendo clearly did not want to do was to create a competitor for the next breed of systems: PlayStation 4 and Xbox Loop.



"We are aiming to make a system which shall not be forced into competing with the others where the contenders can fight only with massive developer resources and long development times as their weapons.Having said that, however, as I mentioned, it is true that, in some software areas, we need to be engaged in the power games. Take The Legend of Zelda franchise, for example, the fans must be looking for the graphic representations that they do not see as cheap at all when the title is released for the Wii U," added Mr. Iwata.

LINK

http://www.xbitlabs.com/news/multimedia/display/20120131205013_Nintendo_Wii_U_Is_Not_a_Brute_Force_Console.html

loosingENDS

Sold?

Sounds like nintendo trolled the other companies into thinking they were only going with casuals when they really intended to just make the gaming market bigger and refocus on core gaming all along.

That's how I would like to see the wii (as a Trajan horse) and read these comments. I think they are subtly trying to disarm the competitors and then bamm. I can understand if you are reading it another way.

What Nintendo did in 2 generations, MS did in 2 years with Kinect

They grabbed a huge casual market share in 2011 and now all their games are core games in 2012

And of course 720 will be same case, have all the casual market by default and focus only on core games

The difference is that no 3rd party developer will support WiiU after 720 is out

if selling 10 million units is equal selling 95 millions unit then Microsoft surely did it in 2 years.

Xbox RROD 720 will be an upgrade of the 360 and will have 1000% failure rate so third party will have no choice but to support the WII U.Sony is dieing but at least they are dieing with honour and have first party exclusive unlike Microsoft who are dieing in disgrace with all the Kinect Krap.

[QUOTE="casharmy"]

[QUOTE="loosingENDS"]

"There are a variety of different ways to show the unique appeal of software.What's important here is not to narrow down what we can do. Rather, we have to create the dynamic range of appeals that the consumers can appreciate.We decided to make a proposal of an additional screen into the Wii U controller because developers could think of a variety of different possibilities here and there of using both a big TV screen and a screen in a player's hand," said Satoru Iwata, the president of Nintendo, during a conference call with investors.



With Wii U, Nintendo hopes to regain core gamers thanks to improved performance and slightly different approach of work with game designers that is projected to yield into higher amount of titles for the new console.What Nintendo clearly did not want to do was to create a competitor for the next breed of systems: PlayStation 4 and Xbox Loop.



"We are aiming to make a system which shall not be forced into competing with the others where the contenders can fight only with massive developer resources and long development times as their weapons.Having said that, however, as I mentioned, it is true that, in some software areas, we need to be engaged in the power games. Take The Legend of Zelda franchise, for example, the fans must be looking for the graphic representations that they do not see as cheap at all when the title is released for the Wii U," added Mr. Iwata.

LINK

http://www.xbitlabs.com/news/multimedia/display/20120131205013_Nintendo_Wii_U_Is_Not_a_Brute_Force_Console.html

loosingENDS

Sold?

Sounds like nintendo trolled the other companies into thinking they were only going with casuals when they really intended to just make the gaming market bigger and refocus on core gaming all along.

That's how I would like to see the wii (as a Trajan horse) and read these comments. I think they are subtly trying to disarm the competitors and then bamm. I can understand if you are reading it another way.

What Nintendo did in 2 generations, MS did in 2 years with Kinect

They grabbed a huge casual market share in 2011 and now all their games are core games in 2012

And of course 720 will be same case, have all the casual market by default andfocus only on core games

The difference is that no 3rd party developer will support WiiU after 720 is out

MS and core games in 2012

Sold?

Sounds like nintendo trolled the other companies into thinking they were only going with casuals when they really intended to just make the gaming market bigger and refocus on core gaming all along.

That's how I would like to see the wii (as a Trajan horse) and read these comments. I think they are subtly trying to disarm the competitors and then bamm they come out with tons of core games while the other companies are still fumbling trying to come up with the next casual craze and get left behind. I can understand if you are reading it another way.

casharmy

During a recent investor Q&A, the observation was brought up to Nintendo President Satoru Iwata that the 3DS has seen significant growth in popularity among those who cIassify themselves as "hardcore" gamers.

"For the Nintendo 3DS, we have to first maintain the situation in which the current owners of the Nintendo 3DS will be satisfied," he said. "We cannot put too much priority on expanding the entire user demographic at present. It is important to maintain a good sense of balance here."

http://uk.ds.ign.com/articles/121/1217524p1.html

Good times to want a Nintendo system.

[QUOTE="loosingENDS"]

[QUOTE="casharmy"]

Sold?

Sounds like nintendo trolled the other companies into thinking they were only going with casuals when they really intended to just make the gaming market bigger and refocus on core gaming all along.

That's how I would like to see the wii (as a Trajan horse) and read these comments. I think they are subtly trying to disarm the competitors and then bamm. I can understand if you are reading it another way.

zeldisco2009

What Nintendo did in 2 generations, MS did in 2 years with Kinect

They grabbed a huge casual market share in 2011 and now all their games are core games in 2012

And of course 720 will be same case, have all the casual market by default and focus only on core games

The difference is that no 3rd party developer will support WiiU after 720 is out

if selling 10 million units is equal selling 95 millions unit then Microsoft surely did it in 2 years.

Xbox RROD 720 will be an upgrade of the 360 and will have 1000% failure rate so third party will have no choice but to support the WII U.Sony is dieing but at least they are dieing with honour and have first party exclusive unlike Microsoft who are dieing in disgrace with all the Kinect Krap.

They have sold more than 20 million Kinects by now

In 2012 i expect that number to go to 40 million at least

[QUOTE="zeldisco2009"]

[QUOTE="loosingENDS"]

What Nintendo did in 2 generations, MS did in 2 years with Kinect

They grabbed a huge casual market share in 2011 and now all their games are core games in 2012

And of course 720 will be same case, have all the casual market by default and focus only on core games

The difference is that no 3rd party developer will support WiiU after 720 is out

loosingENDS

if selling 10 million units is equal selling 95 millions unit then Microsoft surely did it in 2 years.

Xbox RROD 720 will be an upgrade of the 360 and will have 1000% failure rate so third party will have no choice but to support the WII U.Sony is dieing but at least they are dieing with honour and have first party exclusive unlike Microsoft who are dieing in disgrace with all the Kinect Krap.

They have sold more than 20 million Kinects by now

In 2012 i expect that number to go to 40 million at least

source?

1. He never says it is weaker (though odds are it will be a tad weaker)
2. He is kidding himself if he thinks they are not competition :P

Sounds familiar... New gen, not Next gen eh, that doesn't thrill me I gotta say. :P

[QUOTE="loosingENDS"]

[QUOTE="zeldisco2009"]

if selling 10 million units is equal selling 95 millions unit then Microsoft surely did it in 2 years.

Xbox RROD 720 will be an upgrade of the 360 and will have 1000% failure rate so third party will have no choice but to support the WII U.Sony is dieing but at least they are dieing with honour and have first party exclusive unlike Microsoft who are dieing in disgrace with all the Kinect Krap.

zeldisco2009

They have sold more than 20 million Kinects by now

In 2012 i expect that number to go to 40 million at least

source?

It is all over the internet, the had 18 million sales a month ago, now will be close to 20 million or more

http://articles.economictimes.indiatimes.com/2012-01-10/news/30611846_1_kinect-xbox-live-service-xbox-game

CES 2012: Microsoft says has sold 18 million Kinect devices

.

And in 2011 they had only three core Kinect titles, Gunstringer, Halo CE and Forza 4

In 2012 they are going all out with Mass Effect 3 KINECT, Fable Journey, Alan Wake, Ryse, Draco, Steel Batallion, Haunt etc

I think will be close to 40 million Kinects when this year is over with such software

[QUOTE="zeldisco2009"]

[QUOTE="loosingENDS"]

They have sold more than 20 million Kinects by now

In 2012 i expect that number to go to 40 million at least

loosingENDS

source?

It is all over the internet, the had 18 million sales a month ago, now will be close to 20 million or more

http://articles.economictimes.indiatimes.com/2012-01-10/news/30611846_1_kinect-xbox-live-service-xbox-game

CES 2012: Microsoft says has sold 18 million Kinect devices

.

And in 2011 they had only three core Kinect titles, Gunstringer, Halo CE and Forza 4

In 2012 they are going all out with Mass Effect 3 KINECT, Fable Journey, Alan Wake, Ryse, Draco, Steel Batallion, Haunt etc

I think will be close to 40 million Kinects when this year is over with such software

[QUOTE="zeldisco2009"]

[QUOTE="loosingENDS"]

They have sold more than 20 million Kinects by now

In 2012 i expect that number to go to 40 million at least

loosingENDS

source?

It is all over the internet, the had 18 million sales a month ago, now will be close to 20 million or more

http://articles.economictimes.indiatimes.com/2012-01-10/news/30611846_1_kinect-xbox-live-service-xbox-game

CES 2012: Microsoft says has sold 18 million Kinect devices

.

And in 2011 they had only three core Kinect titles, Gunstringer, Halo CE and Forza 4

In 2012 they are going all out with Mass Effect 3 KINECT, Fable Journey, Alan Wake, Ryse, Draco, Steel Batallion, Haunt etc

I think will be close to 40 million Kinects when this year is over with such software

decent but how many kinects were bought by people who already have a 360?It certainyl makes the PS Move looks like a flop but nothing to challenge Nintendo yet.Nintendo is still the champion in the casual market but if Microsoft can expand on kinect and keep it attractive for the casuals on the 720 then good luck to them.

Just what I predicted.

Nintendo is going after the MONEY and SALES than 'upping' the level of gaming.
A lot of people where suckers for buying old hardware and now they're admitting again theyre going the SAME route.
Nintendo are saying in short... Unique system = fancy controller
In the end, they'll only do decent games for Nintendo fans as you'd expect.

Looking forward to the NextBox and PS4.

Just what I predicted.

Nintendo is going after the MONEY and SALES than 'upping' the level of gaming.
A lot of people where suckers for buying old hardware and now they're admitting again theyre going the SAME route.
Nintendo are saying in short... Unique system = fancy controller
In the end, they'll only do decent games for Nintendo fans as you'd expect.

Looking forward to the NextBox and PS4.

g0ddyX

you are right Nintendo should do it like Sony and produce cutting edge hardware so that they lose billions and go bankrupt just like it is happening to Sony.Vita is proving to everyone that graphics and the hardware only matter and not the games, thats why it is destroying Nintendo 3DS and Apple in sales lmao .Nintendo should do "upping" of gaming like Sony does with the dual shock on the PS3,as it feels like playing games with the same controller as the one in 1997.If you like to live in the past and play with the controllers which are almost 3 gens behind then stick with the Playstation and Xbox brand.

So first they were making an HD console that has all of the 3rd party support that the current HD twins get, and now they are saying they aren't competing directly.

I think the WiiU is going to suffer a massive identity crisis. It's not going to be cheap enough and appeal enough to the Wii market and it most likely won't appeal to the market that bought the 360 and PS3.

What market are they going after? The tablet market?

So first they were making an HD console that has all of the 3rd party support that the current HD twins get, and now they are saying they aren't competing directly.

I think the WiiU is going to suffer a massive identity crisis. It's not going to be cheap enough and appeal enough to the Wii market and it most likely won't appeal to the market that bought the 360 and PS3.

What market are they going after? The tablet market?

Wasdie

lol good point there. THey are trying to appeal to everyone, which could be a problem (as far as price goes), but I also expect MS to appeal to all this time. I think SOny is the only one that will push price, tech, and so on. I could be wrong though.

That is a stupid concept that I am sad to see them adopting from users...Its an idotic idea that an entertainment device isn't competing against other entertainment devices.

May as well say tv's dont compete with books.

So first they were making an HD console that has all of the 3rd party support that the current HD twins get, and now they are saying they aren't competing directly.

I think the WiiU is going to suffer a massive identity crisis. It's not going to be cheap enough and appeal enough to the Wii market and it most likely won't appeal to the market that bought the 360 and PS3.

What market are they going after? The tablet market?

Wasdie

I think they are going to be like Wii was, much lower hardware than PS4/720, far lower 3rd party support and a new gimmick that will make them sell 70 million, this tablet that i personally dont like at all, still it is something people will feel is new (not really anyway, but they will make it seem that way) and will flock to it

Also i guess they will have a Zelda SS version early on and release a new Zelda near the end of its life, like with Wii, in 5 years

Is it really up to Nintendo? If Sony and Microsoft copy their approach, which there is a 99.9% chance of happening, they're competing.Eponique

There is 0% chance that MS will copy Nintendo approach, they sell huge and have kept their name with 360 and have not become the laughstock of gaming like Nintendo has with Wii and the zero 3rd party support

title is misleading

There is 0% chance that MS will copy Nintendo approach, they sell huge and have kept their name with 360 and have not become the laughstock of gaming like Nintendo has with Wii and the zero 3rd party support

loosingENDS

you really think nintendo cares if they are the laughing stock to SW when they are #1 in what matters the most?

So first they were making an HD console that has all of the 3rd party support that the current HD twins get, and now they are saying they aren't competing directly.

I think the WiiU is going to suffer a massive identity crisis. It's not going to be cheap enough and appeal enough to the Wii market and it most likely won't appeal to the market that bought the 360 and PS3.

What market are they going after? The tablet market?

Wasdie

Read the Q&A transcript for yourself, this is purely a misinterpretation of what Iwata was saying.

If Nintendo already knows that, they should release the specs for all 3 x systems so we can have a better idea too :)

might as well just stick to appealing to the casual crowd.

no hardcore gamer wants your crap Nintendo.

If Nintendo already knows that, they should release the specs for all 3 x systems so we can have a better idea too :)

Malta_1980

Nintendo never claimed they know that, it's purely a misinterpretation by the journalist who wrote the article.

[QUOTE="Malta_1980"]

If Nintendo already knows that, they should release the specs for all 3 x systems so we can have a better idea too :)

SuperFlakeman

Nintendo never claimed they know that, it's purely a misinterpretation by the journalist who wrote the article.

i know.. was just being sarcastic...

clearly Nintendo doesnt know what MS & Sony are planning... Honestly i dont really care about all the PR talk/interviews etc etc that goes on prior release of a system...

Once the system is out and gamers start being available, i'll form my personal opinion :)

"Looking at the software for home console systems, there are certainly the software titles for which very rich graphics must be reproduced on HD displays and which demand a large number of developers to spend a very long time to develop. It is one of the truths that a certain number of such software titles must be prepared, or the consumers will not be satisfied.


But we do not think that any and all the software must be created in that fashion. When you look at Nintendo's software, extraordinary rich graphics, massive gameplay volume and astonishing rendition effects are not necessarily the appealing point. It is, in fact, important for us that our games are appealing in other ways as well. An example of this is the Wii software, "RHYTHM HEAVEN FEVER," that we released last year in Japan. It became one of the hits, but if we had adopted rich photo-realistic graphics, it would have lost much of its appeal rather than improving its appeal. Similarly, about the Japanese title "Tomodachi Collection" for Nintendo DS, the developers themselves confirmed that this software is based upon the "cheap concept." It is not necessary for us to deploy a huge number of people in order to develop such games. When we need massive power and have a lack of internal resources, we collaborate with outside resources and pour necessary resources to where they are needed.

We are increasing the frequency of working with outside developers where Mr. Miyamoto and our internal developers alone used to develop. At the same time, however, we do not forget to ask ourselves in each such opportunity, "Isn't this something our internal resources alone could sufficiently deal with?" Also, when we have such a doubt in the development as, "Will such cheap pictures do in terms of today's home console graphics' standard?," sometimes we conclude that "showing such pictures are unique and rather appealing, so it's OK." So, there are a variety of different ways to show the unique appeal of software. What's important here is not to narrow down what we can do. Rather, we have to create the dynamic range of appeals that the consumers can appreciate. We decided to make a proposal of an additional screen into the Wii U controller because developers could think of a variety of different possibilities here and there of using both a big TV screen and a screen in a player's hand.

As we will showcase the Wii U at E3 in June this year, the detailed announcements must wait until then, but we are aiming to make a system which shall not be forced into competing with the others where the contenders can fight only with massive developer resources and long development times as their weapons. Having said that, however, as I mentioned, it is true that, in some software areas, we need to be engaged in the power games. Take The Legend of Zelda franchise, for example, the fans must be looking for the graphic representations that they do not see as cheap at all when the title is released for the Wii U. When it is necessary, we do not hesitate to role out our resources."

Full quote but I like how the article twist the words.

Two points:

1) This is nothing new. Before the Wii came out Nintendo openly said that they can't win a money race/war because they simlpy don't have the resources MS or even Sony has. They are a games company. They need to make money off their consoles as and such, they can't just dump a bunch of money into making, designing, promoting a console only to sell at a loss like MS and Sony do.

2) I don't think anybody has ever said that the Wii U will be on par with next gen systems from MS and Sony. They have just been debating whether or not it will be noticeably more advanced than the 360/PS3 or not. I don't think anybody expects the Wii U to compete graphicallywith PS4/Xbox "next".

"Looking at the software for home console systems, there are certainly the software titles for which very rich graphics must be reproduced on HD displays and which demand a large number of developers to spend a very long time to develop. It is one of the truths that a certain number of such software titles must be prepared, or the consumers will not be satisfied.

But we do not think that any and all the software must be created in that fashion. When you look at Nintendo's software, extraordinary rich graphics, massive gameplay volume and astonishing rendition effects are not necessarily the appealing point. It is, in fact, important for us that our games are appealing in other ways as well. An example of this is the Wii software, "RHYTHM HEAVEN FEVER," that we released last year in Japan. It became one of the hits, but if we had adopted rich photo-realistic graphics, it would have lost much of its appeal rather than improving its appeal. Similarly, about the Japanese title "Tomodachi Collection" for Nintendo DS, the developers themselves confirmed that this software is based upon the "cheap concept." It is not necessary for us to deploy a huge number of people in order to develop such games. When we need massive power and have a lack of internal resources, we collaborate with outside resources and pour necessary resources to where they are needed.

We are increasing the frequency of working with outside developers where Mr. Miyamoto and our internal developers alone used to develop. At the same time, however, we do not forget to ask ourselves in each such opportunity, "Isn't this something our internal resources alone could sufficiently deal with?" Also, when we have such a doubt in the development as, "Will such cheap pictures do in terms of today's home console graphics' standard?," sometimes we conclude that "showing such pictures are unique and rather appealing, so it's OK." So, there are a variety of different ways to show the unique appeal of software. What's important here is not to narrow down what we can do. Rather, we have to create the dynamic range of appeals that the consumers can appreciate. We decided to make a proposal of an additional screen into the Wii U controller because developers could think of a variety of different possibilities here and there of using both a big TV screen and a screen in a player's hand.

As we will showcase the Wii U at E3 in June this year, the detailed announcements must wait until then, but we are aiming to make a system which shall not be forced into competing with the others where the contenders can fight only with massive developer resources and long development times as their weapons. Having said that, however, as I mentioned, it is true that, in some software areas, we need to be engaged in the power games. Take The Legend of Zelda franchise, for example, the fans must be looking for the graphic representations that they do not see as cheap at all when the title is released for the Wii U. When it is necessary, we do not hesitate to role out our resources."ShuichiChamp24

For the lazy.