Nintendo has repeatedly expressed its lack of foresight in planning for the high Wii demand this holiday season. Due to the console's general unavailability in stores, the company has pulled Wii advertising spots on TV and in other media in the UK, replacing them with ads for the company's handheld DS.

"We have been running the campaign all year round, but we want to take a responsible stance this Christmas and not fuel demand," a Nintendo rep told MarketingWeek.

The ad campaign, produced by London-based marketers Karmarama, will run in 2008 when retail supplies of the Wii increase. Nintendo recently raised its current fiscal year forecast, estimating 17.5 million Wii consoles will be sold through March 2008, up from 14 million.

For the third time this week, Nintendo has spoken out on the shortages afflicting its ever-popular Wii console, which is still difficult to find on store shelves after over a year on the market.

"Typically, we'd have begun stockpiling console hardware back in August [for the holiday rush]," Nintendo senior VP George Harrison told Wired. "But this year, we were selling all the Wii we could get, and we got all the way through the summer with basically no inventory in our warehouse."

Nintendo currently produces about 1.8 million Wii units a month. About a third of those are allocated for North America, where the $250 system sold more than 350,000 units last week.

Harrison also commented that, based on the strong performance of Western third-parties and developers, the company has no incentive to acquire... Read more

In a cleverly orchestrated public relations dance, Nintendo has managed to chime in on all those supposed WiiWare details without saying much at all.

The only subject concretely addressed was the claim those developing original titles for the download service, which is slated to arrive in early 2008, would be limited to one online release a month. Speaking to Eurogamer, a Nintendo representative said the company is considering imposing such restrictions when WiiWare launches to "address potential volume issues."

As for reports that Nintendo would letting the studios set their own prices... Read more

A new feature for the Wii's online shop will allows users to gift games to other Wii owners. The function will presumably apply to those games found within the Virtual Console and upcoming WiiWare channels.

Once the gift is accepted, the recipient will begin downloading the software. It is unknown if gamers can loan out titles they already own or if the gifted goods need to be bought separately. The company did not provide an estimate as to when the feature will be implemented.

"We think this will be a breakthrough in encouraging customers to spread news of fun games word of mouth," Nintendo president Satoru Iwata told The Associated Press. "We also hope to spur more users to connect their Wiis to the Internet."

Iwata stated that, as Nintendo senior marketing VP George Harrison previously stated, the company will not be lowering the Wii's price in the foreseeable future. Nintendo will also launch the system in China next year.

"We barely have enough Wiis to meet global demand this year," Iwata explained. "But next year, we can bring the Wii to China."

Kyoto-based game giant Nintendo reported its mid-year financial results today, posting a 132.5% increase in year-over-year sales to 694.8 billion yen ($6.072 billion) for the six months ending September 30. The vast majority of these sales came from sales of the increasingly popular Wii and still top-selling DS, with hardware sales taking in 452.7 billion yen ($3.957 billion) during the period.

Most of the revenues, 77.9%, came from overseas sales in markets like the U.S. and Europe. Nintendo's profits showed even greater gains, rising to 132.4 billion yen ($1.157 billion), a 143.7% increase over the first half of the last fiscal year.

Nintendo sold 7.33 million Wii consoles and 13.35 million DS units worldwide during the first half of the current fiscal year, bringing lifetime sales numbers for each console to 13.17 million and 53.64 million, respectively, and furthering Nintendo's reign over both the home console and handheld markets.

Strong software sales of titles like Game Freak's Pokemon Diamond and Pokemon Pearl--which sold 6.95 million units during the period--padded the company's profits as well. The Brain Age series of DS games also continued to sell, a popular title among Nintendo's casual demographic, with the first two games in the DS series hitting 5.19 million units sold during the period.

Nintendo has projected sales of 1.55 trillion yen ($13.5 billion) during the current fiscal year ending in March.

Owners of Nintendo's little handheld that could will soon be able to watch television broadcasts on the touch-sensitive portable. Slated to release in Japan on November 20, the dual-antenna device will sell for the sum of 6,800 yen, which comes out to about $60.

The peripheral, which was originally announced in February 2006, takes advantage of Japan's 1seg broadcasting network. Video appears in the top screen, while the bottom screen acts as a remote control and provides configuration options.

Nintendo has yet to specify if it plans to bring the tuner to Europe or North America, though such an effort would likely require a redesign as 1seg is not available in those territories.

As a busy release schedule causes more and more games to slip into next year, outgoing Nintendo VP of marketing Perrin Kaplan says that Nintendo is now more open to releasing its titles in the traditionally slower months of the year.

"I think we're actually starting to look at the annual calendar differently," said Kaplan in an interview with MTV Games. "The first two quarters of the year tend to be more quiet. But now we've seen some evidence of sales in that period. Other than the holiday quarter, I think the traditional way of viewing it is not necessarily a slam dunk. I think a really good product can be a slam dunk any time of the year."

The anticipated Wii title Super Smash Bros. Brawl was recently delayed to a new release date of February 10, 2008. Kaplan stopped short of saying the game was delayed for scheduling purposes, instead noting the reason was to "tinker and further refine the product."

"People get unhappy about it because they really want the product now," she added. "I think people will be very thrilled with the end result. And I guess we realize people see it as a delay, but we see it is a little bit of a perfection program to make sure the game is absolutely as perfect as Japan knows it can be and it will."

THQ is developing a Wii title that, in some form, implements at least one Nintendo-owned property, the companies revealed today in an SEC filing.

According to the terms of the agreement, THQ has until October 13, 2009 to release the game and must pay for its manufacturing in addition to the royalty fee incurred by using a Nintendo property. All aspects of the title, including packaging and advertising, must first be approved by Nintendo.

Other examples of Nintendo handing out its IPs to external developers include Hudson's Mario Party series (Wii, DS, GBA, GCN, N64), Square Enix's Mario Hoops 3-on-3 (DS), Namco's Star Fox Assault (GCN), and Sega's Sonic & Mario at the Olympic Games (Wii, DS).

Sega has also been on a licensing kick lately, lending out beloved franchises such as Sonic the Hedgehog, Afterburner, Crazy Taxi, and Alien Syndrome to BioWare, Planet Moon Studios, Sniper Studios, and Totally Games, respectively. While most of the above games follow in the footsteps of the original series, BioWare's effort, a DS RPG starring the fabled blue speedster, marks a new direction for the IP.

The Shack attended Nintendo's recent Fall Summit 07 in San Francisco, and came back armed with all manner of game impressions, screenshots, and videos of upcoming Wii and Nintendo DS games, as well as news from Nintendo's recent summit in Japan. Peruse our fine selection of coverage:

GAMES:

Super Mario Galaxy (Wii, Nintendo EAD Tokyo)
- Preview, screenshots, video: streaming / download

Link's Crossbow Training (Wii, Nintendo EAD)
- Preview, screenshots, video: streaming / download

Super Smash Bros. Brawl (Wii, Nintendo)
- ShackCast preview, screenshots, video: streaming / download

Fire Emblem: Radiant Dawn (Wii, Intelligent Systems)
- Preview, screenshots, video: streaming / download

Battalion Wars 2 (Wii, Kuju Entertainment)
- Preview, screenshots, video: streaming / download

Advance Wars: Days of Ruin (NDS, Intelligent Systems)
- Screenshots, video: download

Mario Party DS (Nintendo DS, Nintendo)
- Screenshots

NEWS:... Read more

Rumored to be leaving the company since Nintendo announced the upcoming relocation of its sales and marketing offices, long-time marketing VP Perrin Kaplan confirmed her departure from Nintendo of America today to Reuters. Kaplan will leave the company at the end of the year when Nintendo of America's marketing offices move from the company's headquarters in Redmond to offices in the Bay Area and New York.

Kaplan is the last of three long-standing marketing executives at Nintendo to confirm her departure from the company, following announcements from senior marketing VP George Harrison and corporate communications director Beth Llewelyn. Harrison announced his leave first, but will remain with Nintendo until the end of the year, while Llewelyn left at the end of September following an announcement a week prior.

Like Harrison, Kaplan has worked at Nintendo for 15 years, giving the trio of marketers 42 years of service to Nintendo between the three of them.

Industry print publication Game Developer has released its 2007 list of Top 20 Publishers in video games, and the top slot has changed for the first time in the history of the annual feature, with third-party industry heavyweight Electronic Arts ceding the #1 crown to first-party manufacturer Nintendo. The title is the latest in a seemingly unending string of good news for the Kyoto-based hardware giant, which recently saw its stock hit a record high.

EA moved down to #2, with Activision coming in at #3, Ubisoft moving up to #4, and THQ rounding out the top five. Take-Two Interactive and Sega of America took the next two slots. As far as the other first-party publishers, Sony Computer Entertainment came in at #8, one slot above Microsoft Game Studios. Fans of niche Japanese gaming will be pleased to know that Atlus has joined the Top 20 for the first time at #18, while ailing Atari has dropped off.

Game Developer publisher CMP Game Group compiled its list by considering detailed responses from over 300 members of the game publishing community, as well as sales and review data, release portfolios, and employee pay.

A full list of the Top 20 Publishers follows. The full 100-page report is available for purchase from Game Developer Research, with a summary in the October 2007 issue of Game Developer. ... Read more

In a move that may be an attempt to match Microsoft's entry into in-game advertising, Sony Computer Entertainment America today revealed its establishment of a new arm dedicated to in-game ads. The unit is to be headed by Darlene Kindler, formerly an executive of Google-owned Adscape Media. Kindler has also served at defunct hardware manufacturer 3dfx as well as at Nintendo of America, where she established the company's European distribution arm.

According to Sony, Kindler will be "responsible for SCEA's in-game advertising strategy across all PlayStation platforms including PlayStation Network." SCE London Studio's virtual world Home (PS3) may be an early focus. The upcoming free software is said to contain many purchasable consumables, and is ripe for product placement via billboards, posters, and ads on in-game televisions.

Recent examples of in-game ads and the extra revenue it brings include the Xbox 360 and PC versions of various EA titles, the PC version of Splash Damage's Enemy Territory: Quake Wars and Flagship Studios' Hellgate: London (PC).

The divergence of campaigns between different platform versions of certain games might be a catalyst for Sony's push into the area. Microsoft's Massive has secured prominent dynamic in-game ads for the Xbox 360 version of Neversoft's Guitar Hero III, while the PS2, PS3, and Wii versions lack such integration.

Ads have been met with mixed reactions, though there has been little mass outcry. "The prevalence of ads will be determined by their effectiveness and by gamer acceptance--and for all the discussion and whining that goes on, there hasn't been much genuine resistance," Shacknews' Steve Gibson wrote recently.

Shares of Kyoto-based game giant hit a record high today at 64,800 yen ($560) after being given a "buy" rating by analyst firm Goldman Sachs, Reuters reports. The analysts said Nintendo's financial situation could make its stock emulate the rise of Cupertino-based iPod maker Apple.

"We believe Nintendo's talent in creating new markets, evident from the launch of the DS and Wii, could bring it close to the level of Apple, whose high valuations are due in large part to its innovative business model," Goldman said, according to Reuters.

There's speculation Nintendo may raise its earnings forecast a second time for the current fiscal year, which may have helped drive demand for the stock. Last week, Nintendo became Japan's second-most-valuable active stock on the Tokyo Stock Exchange.

Update: Nintendo will reportedly spend close to two billion yen, roughly $18 million, in supplying 20 million Wii Remote Jackets to gamers worldwide. The figures come from an IGN translation of Japanese newspaper Asahi, though Nintendo does not expect the cost to impact its financial outlook.

Original Story: To combat the legions of slippery-handed gamers out there, Nintendo will henceforth be packaging protective silicon sleeves with all Wii consoles and Wii Remotes. As with last year's wrist strap exchange, Nintendo will freely supply the covers to current Wii owners.

Referred to as the Wii Remote Jacket, Nintendo describes the prophylactic accessory as a "cushiony shield" designed to prevent damage to the Wii Remote and surrounding objects should it fly out of a user's hand. The company emphasizes that the Wii Remote is safe "when used properly," though it recommends gamers attach the sleeves just to be safe.

"We're always looking for ways to improve our products and make sure everyone has a safe and fun experience," reasoned Nintendo of America senior VP George Harrison. "Many electronics manufacturers provide similar protective covers for products like cell phones, PDAs and MP3 players."

Several third party vendors began selling similar sleeves and ... Read more

Following up on his promise of flooding the marketplace with an "unprecedented" number of Wii consoles, Nintendo of America president Reggie Fils-Aime (pictured left) has admitted that there is no way the company can meet consumer demand this holiday season.

"The issue is not a lack of production. The issue is we went in with a curve that was aggressive, but the demand has been substantially more than that," Fils-Aime told the San Jose Mercury News. "And the ability to ramp up production and to sustain it is not a switch that you flick on. We're working very hard to make sure that consumers are satisfied this holiday, but I can't guarantee that we're going to meet demand. As a matter of fact, I can tell you on the record we won't."

The president went on to recommend that hopeful Wii owners check out "all of the likely suspects"--Best Buy, Circuit City, GameStop, Toys R Us, Wal-Mart--and ask about this shipment schedules, which Fils-Aime said should be frequent.

"The only other pragmatic advice is that we're aware of the situation, and we're working very hard to address it," he continued. "Believe me, I'm constantly pushing for more capacity and more volume."

Nintendo corporate communications director Beth Llewelyn confirmed her long-rumored departure from the Redmond-headquartered game giant today in an e-mail sent to the media. Her announcement follows the confirmation by senior marketing VP George Harrison of his forthcoming departure from the company in the transition of its sales and marketing team to the Bay Area and New York.

"I have thoroughly enjoyed my time at Nintendo and working with all of you. I've helped launched many products over the years, but I think what we've done in the last few years has been the most exciting," Llewelyn said in the e-mail. "It is an amazing time in the industry right now and there is so much more to come from Nintendo."

The last day of Llewelyn's nearly 12-year tenure with Nintendo will be Friday, she said in message. Llewelyn chose not to relocate with the company because of her family, which she hopes to spend more time with upon her resignation.

With both Harrison confirming his departure at the end of December and Llewelyn leaving in two days, only marketing VP Perrin Kaplan has yet to announce her leave of the company prior to the Seattle exodus. Like the other two execs, the opening for Kaplan's position has been posted on Nintendo's career site for several months, legitimizing rumors of her departure.

Despite its absence at last week's Tokyo Game Show, this week Nintendo became the second most valuable active stock on the Tokyo Stock Exchange, Reuters reports. With a market cap of $72.8 billion, the company is second only to Toyota's $208 billion market value.

A technicality could be responsible for Nintendo's high placement as well, as trading of the potentially more valuable Mitsubishi UFJ Financial Group was suspended this week in preparation for a planned split of the stock. Regardless, Nintendo recently reclaimed its long-absent top spot in the console race, with worldwide Wii sales of 9 million consoles.

In comparison, Microsoft's second-place Xbox 360 sold 8.9 million units worldwide as of July, with a one year head start on Nintendo's console. Nintendo's stock has quadrupled over the past two years following the wildfire sales of the DS and Wii, the Reuters story reports.

Launched earlier this year, Nintendo of Korea has taken its first action against piracy of games in the country, The Korea Times reports. The Korean branch of Nintendo announced today it has filed suit against an unidentified number of users who shared Nintendo software with P2P programs or on websites, on the basis of copyright infringement.

Nintendo went through the Supreme Prosecutors' Office in Seoul to file the case, the first time the company has sought legal recourse for piracy in South Korea. "The legal action was taken against only some sites and users this time but we will take further measures if such a violation continues to take place," a Nintendo rep told The Korea Times.

The Seoul-based branch of Nintendo would not reveal the specifics of the case or how many people or sites were involved. Nintendo has gone after counterfeiters in Taiwan and China for selling hard copies of pirated games, but not for sharing games using P2P software or other websites.

Confirming rumors earlier this summer, Nintendo of America's senior VP of marketing George Harrison will leave the company at the end of December, according to Reuters. His departure will follow Nintendo's relocation of sales and marketing staff from its Redmond offices to San Francisco and New York.

"I have confirmed to all employees that I will be leaving at the end of December and not making the move to California," Harrison told Reuters.

Harrison began working for Nintendo in 1992, and would not reveal his future plans to Reuters. Speculation has been rampant among industry insiders as to who is going to take Harrison's position, and competition for the job is said to be high, given Nintendo's recent success.

Along with numerous other employees, marketing VP Perrin Kaplan and PR director Beth Llewelyn have also been rumored as leaving Nintendo once the company makes the move, though this has yet to be confirmed. Job postings on Nintendo's career site reveal openings for both Kaplan's and Llewelyn's positions in Nintendo's future Bay Area office.

Kyoto-based game giant Nintendo has reclaimed the top spot in sales of home consoles worldwide, according to a report today from the Financial Times. The story's numbers place the Wii's 9 million units sold slightly ahead of Microsoft's now-second-place Xbox 360 at 8.9 million sold.

The Financial Times combined sales data from industry monitors NPD, Enterbrain, and GfK for sales in the U.S., Japan, and Europe, respectively. The data runs through August in Japan and July in the U.S. and Europe.

Nintendo hasn't held the top console sales spot since the era of the Super NES, before Sony's PlayStation consoles began their dominance. Nintendo's own numbers through June actually give the Wii sales a larger figure than the Financial Times report, placing it at 9.27 million consoles sold, though these numbers reflected sales to retailers.

With Wii sales high since launch--tripling that of the competition in Japan alone last month--the announcement was sure to come before long. Shacknews attempted to contact both Mario and Luigi on the story, but the pair were unavailable for comment.