Makoto Iwai interview
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GameDaily Biz has an interview with the Namco Bandai Games America Executive Vice President about their strategy for 2007.
http://biz.gamedaily.com/industry/interview/?id=15114
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Namco Bandai Discusses Strategy for '07
We caught up with the recently promoted Makoto Iwai, Executive Vice President and Chief Operating Officer at Namco Bandai Games America, to talk about the publisher's recent merger, its approach to the Japanese and Western markets, and more.
GameDaily BIZ: First of all, congratulations to Mr. Iwai and Mr. Nakata on their promotions. How do these moves reinforce Namco Bandai's strategy for success in 2007 and beyond?
Makoto Iwai: Namco Bandai Games' focus for 2007 is to open up new paths for original content as well as to continue launching new chapters in our most beloved franchises. With my strong background in development and Mr. Nakata's experience in finance and operations, we plan to lead a tight ship at Namco Bandai by paying attention to the most important aspects of a successful interactive video game company, Development, Creativity and Organization.
BIZ: Last year Namco and Bandai completed its merger. How would you describe the integration - has it been as smooth as you would like?
MI: Anytime you're dealing with an integration between two companies as large as Namco and Bandai you are bound to have some bumps along the road... Fortunately, with an incredible amount of cooperation between everyone involved, we were able to smooth out a lot of these kinks last year in order to focus on our strategies and goals for 2007. There is no doubt that there were challenges we had to face this last year, especially concerning the amount and variety of titles we had coming out when we combined the two companies in early 2006.
By finding ways to utilize both companies strengths—Namco for its strong development and well known franchises and Bandai for its long list of anime and toy licensed franchises- we were able to overcome these challenges in 2006. We feel very confident moving into 2007 with a clean slate and a long list of impressive titles that are going to blow the competition out of the water!
BIZ: How exactly is Namco Bandai leveraging the respective strengths of what was once two separate companies?
MI: I began to answer this question in my last answer but let me elaborate a bit more on this...When the integration occurred, Namco was known for its solid and extremely popular franchises such as Tekken, Ace Combat and Soul Calibur, while Bandai came in with the strong anime and toy licenses including Naruto, Tamagotchi, and Gundam...
Although these are very different line-ups, the one thing that both these companies share is their continued focus on creativity and solid quality titles. Whether it was the establishment of some of the most respected fighting game franchises on the market or the creation of one of the largest franchises in Japan, both companies were able to become key players in the video game industry.
As each company rose to prominence, each established their own means of making sure creative and successful products were continued to be made. I'll be honest with you, Namco and Bandai each had their own styles of creating great products but their underlying values were the same, which of course has been the key aspect in this successful integration.
With a wonderful and challenging year under our belt, we feel very good about 2007 and beyond as we continue to evaluate our strengths and methods in order to capitalize on this integration.
Now, from a business standpoint, the strengths of the integration are obvious. Bandai has a very prominent position in Japan and Namco has a very prominent position in the United States. This merger now allows to us to be competitive on a global market scale. We're ready for the challenge.
How are we using those strengths of each? Well, we're talking a lot with each other, we're making sure franchises, like Naruto, are given proper attention, we're looking to establish new IPs, we're still looking at the PC market and the list goes on and on. What I'm saying is we no longer want to be thought of as two companies that came together, we are now one company with a ton to throw on the table and we plan to make the video game market our own in 2007 and beyond!
BIZ: Do you foresee other Japanese game companies merging in the future? Is this inevitable?
MI: You know, I'm quite sure a number of people are going to be looking at what we are doing to see what comes from it. We're hoping to influence their decisions in a positive way. Is it inevitable? I don't know.
I do know that you need to diversify your properties to ensure you're maximizing their potential. We're in a position to do that.
BIZ: The Japanese game industry finally had a nice turnaround year thanks in large part to the DS. Are you encouraged by this? How would you describe the state of the industry in Japan?
MI: We are very pleased and encouraged by the DS performance right now and are happy that we have been able to tap into that success in both Japan and the U.S. Our DS titles typically perform very well and we're always making sure we keep a close eye on the Japanese market to ensure we react appropriately with future titles here in the U.S.
As for the state of industry in Japan, it's in a very interesting position. It's obvious that the handheld market is moving in a positive direction, which means there is still potential for other handhelds to do well over there. However, the console market right now seems to be showing a very clear direction and we're hoping to capitalize on that direction whenever we have the chance. We hope to introduce some titles this year that might just do that. -
BIZ: While companies like Sega and Capcom seem to be deliberately catering to the Western market, it seems that much of Namco Bandai's video game content is still very much Japanese. Is Namco Bandai looking towards the West also? How would you compare your approach to Sega's or Capcom's?
MI: I think Namco Bandai has always been looking towards the West when it comes to title development. Our franchises like Tekken, SoulCalibur, Ace Combat, Katamari and others always resonate well with the Western audience. However, I can understand what you're talking about and the short answer is, yes, but what we're doing is a little different from Sega or Capcom.
We have begun to use Western developers to create more titles for the Western audience. For example, take a look at our PC products. All of these products have been created internally and guided by people who understand what this particular market wants.
Now that's not to say our titles developed in Japan are made strictly for the Japanese market, but they typically focus more on Japanese related themes, design and development. Fortunately, these types of "Japanese-style" video games are still very appealing to a Western audience as can be proven with the success of some of our top franchises like Naruto, Tekken, and Ace Combat.
Becoming a global competitor means you need to have products that have a global appeal and that's something we are aware of with every product we bring out. While I can't go into anything specific, I think you'll be pleasantly surprised at how palatable our products will be for both the Japanese and U.S. markets in 2007.
BIZ: In a recent financial document, Namco Bandai discussed "Strategic Business Units" or SBUs and in particular the section on Game Contents SBU mentions sharing know-how between amusement machines, home video games, and mobile "to build a flexible development system." Can you explain how this works and how it's been an advantage for Namco Bandai?
MI: Since the integration, all these departments have been combined to form one creation group, therefore they are more easily able to share their know-how and build a flexible development system.
BIZ: What are your feelings on the Nintendo Wii? Do you think Nintendo made the right choice by bringing unique motion sensing controls to the market instead of a console with better graphics like PS3 or 360?
MI: With regards to what Nintendo is trying to accomplish with the current market, we have great confidence they can succeed. We think the direction they took with the Wii controller, while perhaps not appealing to the entire hardcore audience, will introduce a number of new people to video games and that's something every publisher is always interested in - a broader market.
We look forward to bringing some of our most popular franchises as well as new and original content to this new console. We believe that not only will the console reinvigorate the franchises we have but will give us an opportunity to come up with new and original IPs that will utilize the Wiimote.
BIZ: How do you think the Xbox 360 and PS3 stack up against each other? So far Namco Bandai has already released two PS3 games, while there is only one on 360...
MI: Namco Bandai Games will continue to support both consoles in 2007 and beyond. In 2006, a majority of our games were focused on the Sony SKUs but moving forward you are going to see us branching out with more 360 and Wii titles. We feel each next-gen console is very strong right now and we plan to create games for all three.
BIZ: Do you think Microsoft's 360 can ever be truly successful in the Japanese market? Will Japanese gamers embrace an American console?
MI: I don't have an answer for that, but as a global publisher we will continue to support the Xbox 360 because we believe it has strong potential.
BIZ: What is Namco Bandai's approach to online gaming as well as downloadable games and content? How will this evolve in 2007?
MI: One of our major strategies in 2007 is to focus on exploring new online revenue streams; therefore we are definitely open to looking into these different paths of game distribution.
For now, all I can say is that we're very pleased to see the online market being adopted by the consumer. It's something people want and something we hope to give them in the future.
BIZ: Finally, what do you believe are the Namco Bandai titles that will really drive success for the company in 2007?
MI: We are very excited for our 2007 line-up and can't wait to let everyone know what we have in store. As for now, we have only announced a fraction of what we have slated for this year—Tomagotchi: Party On! for the Wii, Naruto: Ultimate Ninja 2 for the PS2, and Eternal Sonata for the 360 are three that we have just announced and are looking forward to. But please stay tuned for much much more coming out of Namco Bandai games in 2007! From new next gen installments of our favorite franchises to some exciting surprises and new IPs, the Namco Bandai games 2007 line-up is going to be a force to be reckoned with!
BIZ: Thanks very much for your time. -
Makoto Iwai
Executive VP and Chief Operating Officer
NAMCO BANDAI Games America Inc.
History: Mr. Iwai was previously a General Manager for Sony Computer Entertainment responsible for Product Development for the Korean market, as well as a management member of the company.
Highlights: Since joining Namco Bandai in August 2006 he has strengthened the Development departments with effective strategies and processes which in turn led the company to greater success in 2006.
Currently: As Executive Vice President and Chief Operating Officer, he will oversee Business Development, Marketing and Public Relations, Sales, and all functional groups under Development.