Nintendo unveils Revolution

Nintendo, the industry veteran behind the iconic video-game character, sought yesterday to secure its place in the next wave of game consoles -- showing a new machine, code-named Revolution, that will differ from its rivals by sticking mainly to games.

Sony and Microsoft plan a wide array of multimedia capabilities in their upcoming game consoles, the PlayStation 3 and Xbox 360. But as Nintendo tries to come from behind in the next generation, it is betting that most people will choose a game console based on something other than the ability to plug a music player into it.

"It is the game experience that will most separate Revolution from its competitors," said Nintendo President Satoru Iwata, introducing the new console on the eve of the big E3 video-game convention in Los Angeles.

The smallest home console ever made by the company, Revolution was displayed yesterday in black casing with a neon blue slot for loading game discs, although the company said a variety of colors are being considered. The console, to succeed the current GameCube, is slated for release sometime next year.

In a surprise, Nintendo said Revolution will play downloadable versions of popular games originally made for the company's previous consoles, dating back to the Nintendo Entertainment System, released 20 years ago. Among other features, the console will come with wireless connectivity for online gaming.

On a separate front, the company looked to build on its strength in portable gaming, unveiling a new addition to its Game Boy product line. Dubbed Game Boy Micro, the 4-by-2-inch device is slated to debut this fall, playing games made for the larger Game Boy Advance SP. The company didn't announce a price.

Nintendo has historically dominated hand-held gaming. But in worldwide console market share, its GameCube is in third place, slightly behind Microsoft's Xbox and far behind Sony's popular PlayStation 2.

Executives from Sony and Microsoft have sought to cast the next-generation console battle as primarily between themselves, with Nintendo as an also-ran. During their event at E3 earlier this week, Sony executives repeatedly compared the specifications of the PlayStation 3 with those of Microsoft's planned Xbox 360, without mentioning Nintendo.

Microsoft's Bill Gates said during a recent speech that Nintendo "is more likely to be a niche player this time around."

Nintendo may not have helped its cause by offering fewer details about its console this week than Microsoft and Sony did about theirs. Unlike Microsoft and Sony, for example, Nintendo didn't offer any demonstrations depicting what games will look like on the new console. Nor did it show Revolution's controllers.

"The battle for the No. 1 position is going to be very interesting between Microsoft and Sony," said Schelley Olhava, an industry analyst with IDC, after Nintendo yesterday gave the last of the presentations from the three companies.

Nintendo did promise innovative games for Revolution, including some that will establish new genres. The company also said it will create games that extend its popular franchises, including Mario and Legend of Zelda, onto Revolution.

But Nintendo won't be first out of the gate with its new console. Microsoft plans to launch its Xbox 360 this year. Sony plans to launch the PlayStation 3 in spring 2006. Nintendo said Revolution will come out in 2006 but declined to be more specific.

At the same time, one of the main goals for all three companies is broadening the market for game consoles beyond hard-core gamers and further into the general public. And in its game development, Nintendo has displayed a knack for coming up with titles that appeal to the mass market.

In the most recent example, a portable game called Nintendogs has taken off in Japan, boosting the Nintendo DS dual-screen hand-held gaming device in its competition with Sony's PlayStation Portable. The game features lifelike dogs that can be taught tricks and petted virtually via the Nintendo DS touch-screen.

Nintendo also showed another new DS title that it hopes will broaden the market for the device. Called Electroplankton, the program displays patterns and images that can be manipulated via the touch screen to create music and rhythms.

"Hit software sells hardware," said Reggie Fils-Aime, Redmond-based Nintendo of America's executive vice president of marketing, summing up the company's strategy. Nintendo hopes the axiom will apply to Revolution, as well.

Yesterday's unveiling of the upcoming Nintendo console completed a rapid series of introductions for the machines that will compete in the next console generation. Microsoft showed its new Xbox 360 machine for the first time in an MTV special last week. Sony unveiled the PlayStation 3 Monday afternoon.

While Nintendo's Revolution will come with some basic media capabilities, such as the ability to play DVDs, it will be more of a single purpose device than the next Sony and Microsoft consoles will be. While that may not be as impressive to people looking for a multifaceted machine, it could be a selling point for others.

"All they do is games. A sense of credibility and authenticity comes with that positioning," said Joseph Anthony, chief executive of Vital Marketing, a New York firm that has done work for Nintendo.

It's unclear whether that lack of multimedia bells and whistles will let Nintendo sell its next console for less than Sony and Microsoft sell theirs. None of the companies disclosed the expected price of their new consoles this week.

But IDC's Olhava said she wouldn't be surprised to see Microsoft and Sony sell their next-generation consoles for $299 at launch, the same price at which both of their predecessors debuted.

The PlayStation 3 will offer the ability to browse the Internet and play a wide variety of media, including photos, audio and video. The Xbox 360 will include many similar features, letting users rip music tracks to its hard drive and plug in portable music devices and cameras. The Xbox 360 also will tap into a home network to access content including recorded TV stored on a Media Center PC.

Microsoft and Sony both stressed that they don't expect those extra features to detract from the quality of games. This week, the companies showed snippets of games and technology demonstrations that looked like movie scenes.