http://wii.ign.com/articles/118/1181170p1.htm
For the past five years Nintendo has opted out out of the HD era. The publisher focused on innovative approaches to control, starting with the Wii Remote and moving into ideas like the Wii Balance Board. The results are known to us all, as Wii dominated the industry for several years before tapering off dramatically in the last year or so.
Nintendo is now preparing to move into HD, both with its next home console and its own game production. Many, including editors at IGN, have wondered if a company that has not been focused on that kind of game development can possibly match what other studios have been working on for over half a decade. A Nintendo investor was wondering the same thing, and asked that question of company president Satoru Iwata.
"You indicated that Nintendo might not have HD video game know-how because we have never developed such games," Iwata told the inquiring investor. "However, there was a scene from 'Zelda' included in the latter half of the Wii U introduction video.
"This scene is from demo software we, in cooperation with a development company, created in a relatively short time before the E3 show, but a person from another Japanese software development company saw this video at E3 and commented, "These kinds of images cannot be easily produced on the gaming machines of other companies," and so we believe we have been able to prepare something, and the quality of which can be appreciated to some extent or more. Because we did this in a relatively short timeframe, we could show that we are not completely behind other companies, so I think you do not have to feel anxious about it."
Iwata reiterated that Nintendo chose not to enter the HD era with Wii because of HD TV adoption rates. "It is not that our decisions were wrong, but it is just that we made these choices," Iwata said. Earlier in his remarks, Iwata noted the company had "judged that the balance between the cost we would have had to pay in order to realize beautiful high-definition images and the merits we could gain from doing so was not worth it."
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