Nintendo President: 'We Have Scuttled New Hardware'

The "ocean" is still blue for now, but as Sony and Microsoft begin swimming in the motion control waters, it might change colors fast.

AP Nintendo Wii

"We have the greater potential to create the blue ocean market when people are skeptical," he says. "So when we realize that other people are coming into [this] market … there are two things we [can] do. One is trying to intensify the fun nature of something we are already doing. The other is try to create a new blue ocean."

Does that hint that the company is planning another major shake-up when it decides to unveil its next generation console down the road? Not necessarily.

Iwata says the company is still investigating whether branching in a new direction or making an iterative step from the Wii is the right move.

Meanwhile, Nintendo is continuing with its strategy to offer new ways to play games. The company on Tuesday coyly announced the Wii Vitality Sensor, a new peripheral that Iwata said could be used to help people better learn to relax in a fun, unique way – much like Wii Fit made exercise appealing for some people.

At its press conference, Nintendo did not offer many details about the Vitality Sensor, other than it would use a fingertip pulse monitor.

In our one-on-one interview, though, Iwata showed a brief video about the product that he had compiled and edited on his flight from Japan to Los Angeles days ago.

The video showed Iwata himself demonstrating the product and revealed a bit more about how the sensor would work. Light pulses will be sent through the user’s finger, tracking their pulse and showing other items, such as their stress level. It also demonstrated some of the possible games/applications for the Vitality Sensor, including one that helped train users how to breath in a more rhythmic fashion, then showed the before and after effects of collecting one’s self.

Iwata said he hopes to launch the product in 2010.

While biofeedback and tools to calm one’s self might sound like a hard sell to fast-paced Americans, the Nintendo president says he is confident the company can make it work.

"The U.S. market might be challenging," he concedes, "but everybody was skeptical of the sales potential [of 'Brain Age']. Even after the Japanese sale showed results, people in the U.S. were skeptical. 'It's just a Japan thing that can't be translated to the US market.’ [they thought]."

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• McCartney, Starr Launch Beatles Rock Band Video Game
• Video Games to Take Center Stage at 2009 E3

© 2012 CNBC.com

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