Enticing consumers to buy the new Nintendo Wii U game console for their living rooms comes down to unique content and an innovative user experience, Reggie Fils-Aime, Nintendo of America President and COO, told CNBC’s "Closing Bell" on Friday.
Nintendo's new version of the Wii console has a built-in DVR that will allow users to watch and record live television like a cable set-top box.
“Think of it as a super remote and a super aggregator for all your video content,” the Nintendo executive saidof the new console. In addition to recording regular TV, the console provides access to video on demand content from Netflix , Hulu and Amazon. (Read More: Nintendo’s New Wii U Tackles TV.)
Fils-Aime said that content is what will separate Nintendo from competitors like Sony and Microsoft, since Nintendo content like "Super Mario Brothers" is not available on other platforms. “We think the content and additional services we offer on our products is what will compel consumers to buy our products,” he said.
Innovation is also important. “We believe we have to bring new experiences — not just better graphics, not just faster processors — in order to excite the consumer into the new system,” he said.
Nintendo has also strategically chosen to keep its content off other gaming systems and platforms including Apple’s tablets and phones.
“We generate revenue and profit by selling the hardware as well as selling the software,” Fils-Aime said. “We believe the best experience for the consumer is tied to the hardware we make because we know how to push the best performance.” (Read More:.)
Nintendo expects growth to come from three places over the next few years — Wii U, Nintendo 3DS and expansion into new regional markets in Eastern Europe, Latin America and Asia.
“For as much as I’m excited about the Wii U, Nintendo 3DS is what’s going to drive our financial performance in this current fiscal year and beyond,” he said.