Conference rusure::nintendo

340.0. "Nintendo goes Network!" by ACESPS::WALTON (My spidery writing inclines. . .) Thu Oct 26 1989 12:55

    An article from the October issue of Digital's Japan Review about
    Nintendo's networking plans (Internal use only).

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    Nintendo plans to Assemble Game Computer Network in the U.S.


    Nintendo is currently working on putting together a game computer
    network that will connect 10 million households in the United States by
    the end of 1991. It will assemble this large-scale communication
    network by using game computers, a product that is expected to number
    more than 20 million units in the United States within the year.  The
    project will start next fall with the cooperation of AT&T.  In order to
    make the adapter needed for the communication network more common and
    strengthen the development of games for the network, Nintendo is
    introducing a rebate system for game software makers.  The company will
    reimburse software makers with part of the rebate that AT&T pays
    Nintendo according to the frequency of line use.  By offering this
    continuous royalty payment to the software makers, they hope to
    stimulate the design of better software.

    Nintendo's contract with AT&T specified that AT&T would pay a portion
    of collected line charges on the game computer network as a rebate. 
    Nintendo will then pay part of this rebate to the copyright owners if
    the software.  If the software makers become popular, they can receive
    income as long as their communication games are user.  Since NTT does
    not offer a rebate system, this is limited to the stateside network. 
    Network games will be controlled by a new device called Gate Way that
    Nintendo has installed mainly to large-scale computers.  Users
    connect to this host computer over the telephone line, and select a
    partner for playing competitive games.  Nintendo monitors the line use
    and the software selected with its computer, and will pay rebates to
    software makers with whom Nintendo has license contracts.

    The company plans to offer the communication adapter for the American
    version NES Game Computer at a low price in order to expand the
    communication network.  The communication adapter sold in Japan costs
    $141 including sales tax, but the one for use in the U.S. will be less
    than $100, primarily because its specifications are different.  They
    will display the communication adapter and five or six kinds of
    software for network games at the Consumers' Electronics Show next
    June.

    Total sales of game computers in the United States had reached
    15,750,000 units by the end of July.  The company presently exports
    800,000 units monthly to the U.S. and anticipates reaching total sales
    of 20,000,000 units by the end of next year.  It will emphasize network
    game software in which players compete with each other over the game
    computer communication network that will start next fall.