New Game Boy Micro makes solid debut

Tuesday, September 13, 2005; Posted: 10:34 a.m. EDT (14:34 GMT)

TOKYO, Japan (Reuters) -- Nintendo Co.'s new mobile phone-sized game console, Game Boy Micro, attracted better-than-expected orders on its debut on Tuesday, though less than Game Boy Advance SP had done, retailers said.

Nintendo, known for software titles featuring characters such as Mario, Donkey Kong and Pokemon, launched what it said was the world's smallest console in Japan a week before the U.S. launch with a price tag of 12,000 yen ($110).

Nintendo dominates the portable game industry with a market share of about 94 percent, and aims to strengthen its grip with the Micro as it goes up against Sony Corp.'s PlayStation Portable.

Sony will introduce new white consoles in Japan on Thursday in an effort to boost sales. Previously the consoles were only available in black.

Nintendo, based in the western Japan city of Kyoto, hopes to draw women, casual gamers -- those unwilling or unable to spend hours playing games -- and older players with the new compact and stylish device.

"Despite (the Micro's) functions being the same as the existing models, it is popular," said Hirokazu Hamamura, president of Enterbrain, which publishes leading game magazine Famitsu.

"Consumers lately have tended to buy particular hardware because it is stylish or fashionable," he said, adding the popularity of the Micro reflects that trend.

Local retailers, including Japan's biggest discount home electronics retailer, Yamada Denki Co., said the Micro was enjoying solid orders.

"The orders have been going well," said a Yamada Denki spokesman. "Especially, the Famicon color version is really popular."

The Micro is available in Japan in silver, purple, black and blue, with a fifth "limited edition" design in the color of the once-popular Famicon game console aimed at attracting adults who played with the Famicon as children in the 1980s.

An electronics store clerk in Tokyo said it received advance orders for 70 percent of its Micro stock, mostly for the limited edition.

Orders were brisk but less than when the Game Boy Advance SP made its debut in 2003, the clerk said. The store sold all of the SP consoles through advance orders at the launch.
Shrinking market

Japan's video game hardware and software market has shrunk 30 percent to $4 billion since 2000, according to the Computer Entertainment Supplier's Association.

Nintendo has been trying to draw new and returning players with the Micro and its DS portable game machine, launched late last year, to expand in a Japanese industry expected to face further deterioration due to the country's falling birthrate, which could erode the game sector's customer base.

The company said the Micro has been attracting its target consumers -- young adults aged around 25 to 35. It declined to reveal the total initial shipment volume.

Nintendo aims to sell 4 million units of the Micro worldwide by the end of its business year to next March.

"The company aims to expand the gaming population, and with the Micro it wants to attract adult players, especially those who used to play games but stopped because they got busy or for other reasons," said analyst Yuta Sakurai at Nomura Securities.

"Adults have different budgets (from kids)," he said.

Sakurai said the Micro would compete well with games played on mobile phones, which are increasingly popular in Japan, because it has better quality and is more stylish.

Some analysts have said the price, which is over 2,000 yen more than the Game Boy Advance SP in Japan, is too high, but Sakurai said it was appropriate considering the target customers and its features.

The Micro, whose screen has adjustable brightness levels, will play the same games as the current Game Boy Advance SP. It weighs just 80 grams (2.822 ounces), although it is heavier than Apple Computer Inc.'s new iPod Nano digital music player, which weighs 1.5 ounces.

Nintendo released three Mario games, featuring the popular character from "Super Mario Brothers," on Tuesday, the 20th anniversary of the release of the original "Super Mario" game.

Nintendo plans to release the Micro in Europe on Nov. 4 in silver, pink, green and blue, at a recommended price of 99 euros ($122), while U.S. versions, due on Sept. 19 for $99, will be available in black and silver with three removable faceplates.

The prices are the same as for Game Boy Advance SP in those markets.

Nintendo said in May it expected to sell a total of 10.2 million Game Boy Advance devices worldwide this business year, including Game Boy Micro.

Shares in Nintendo closed up 1.3 percent at 12,440 yen, outperforming a 0.04 percent rise in the Nikkei average.