active TV, but also large scale Gaming centers and underdeveloped demographic markets. Finally, Nintendo plans to capitalize its market position through lobbying for a uniform rating system, as well, as maintaining current high levels of advertising and improving communications with customers through internet web site development. Development From industry experience and analysis, it is quite clear that success in the interactive entertainment and specifically the videogame industry are directly related to staying atop of the newest technology. With this in mind, we plan to focus on both sides of the development coin: Hardware and software development. With the release of the N64, Nintendo is planning on releasing a minimum of 10-15 games in the first year for the N64 and steadily increasing the number released throughout this products lifetime. This will create a solid foundation of demand from our consumers, while not under satisfying them from the start. In addition, we will focus on developing new accessories to add value to the gaming experience. While marketing and expanding the products offered for the N64 is vital to Nintendos current success, we must continue to move forward. Nintendo is set on constantly improving the efficiency and speed at which its devices operate. With this is mind, we plan to begin development of the N128 within the next year. Under this development program, the N128 will be test marketed within two years, including the connection for our Gaming World Channel. If all goes as planned we would have this product out on the market within three to five years. Additionally, we plan on testing to see if N64 games should operate on the N128. Just as importantly, a majority of our revenue comes from game sale, so it is very important that we concentrate on developing games with the most resent advances in all integral aspects of game production, such as audio, video, and special effects. Product Expansion While Th...
