We’re bringing core intellectual properties and franchises in categories we think have legs on the Wii platform. A good example of this is Dead Space. We’re bringing a Wii title to the market this year and it is absolutely going to be the quality and fear factor that you got on the PS3, Xbox 360, and PC SKUs this past year.

MadWorld is still awaiting its anticipated M-rating (mature) from the ESRB.

“I think it is true that new information penetrates through the Japanese market very quickly and that Japanese people tend to get tired of something new very quickly,” Iwata stated. “It is also true that the population is smaller when compared with that of other major markets, so it is inevitable that the market starts to feel saturated earlier than others.”

Citing previous hardware generations, he noted that the U.S. has twice the sales potential of Japan. Europe, where Nintendo’s marketing has improved since the GameCube days, also presents growth opportunities.

Iwata also mentioned that the Nintendo DSi was one method Nintendo used to “reactivate the Japanese DS market”. Regarding the Wii, he stated that it’s “not impossible for the Wii’s total sales to exceed the final installed base of PS2“.

What we are looking at are the cumulative Wii and DS sales through the end of 2008. Wii has been selling at industry’s record pace so far, and with new customers acquired by the gaming population expansion efforts, it is not impossible for Wii’s total sales to exceed the final install base of PS2. Wii still has much more room for expansion. We can expect more sales of software in the next fiscal year than in the current year. With what kind of software is Nintendo going to achieve this goal? Well, it will be shown at E3 to be held in the U.S. this June.

It seems Nintendo has big plans for the Wii at this year’s E3. I wonder what kind of games can we expect to see? Mario, Zelda, or perhaps Kid Icarus? Then again, Iwata could simply be referring to games we’ve already seen, such as Wii Sports Report.

Nintendo’s New Play Control! games are updated Nintendo GameCube games with modified controls for the Wii; they’re getting good reviews and selling well in Japan, so keep on eye on them.

• New Play Control! Pikmin (Feb. 6 Europe, March US)
• New Play Control! Mario Power Tennis (March 3 Europe, March US)
• Punch Out!! (First half 2009, Europe and US)
• Wii Sports Resort (2009 Europe, first half 2009 US)
• Sin & Punishment 2 (2009, Europe and US)
• Another Code R and Endless Ocean 2 (2009 Europe)
• New Play Control! Pikmin 2 (First half 2009, Europe)

These are some awesome Wii games for both casual and hardcore gamers. But what about the second half of 2009? Will Kid Icarus ever see the light of day? Will Satoru Iwata reveal any new games at the Game Developers Conference?

• Mystery Case Files: MillionHeir (Feb 2 Europe)
• Walk with me! Do you know your walking routine? (Feb 20 Europe, 2009 US as Personal Trainer: Walk with Me!)
• Pokemon Platinum (2009 Europe, March 22 US)
• Rhythm Paradise / Heaven (2009, Europe and US)
• Mario and Luigi RPG 3 (2009, Europe and US)
• Kirby Super Star Ultra (2009 Europe)
• Fire Emblem: Shadow Dragon (Feb 16 US)

Although Nintendo still expects to finish the year in the black, “analysts described Nintendo’s guidance as a ‘baffling and potentially very worrying‘ sign for worldwide sales of the Wii as recession curtails household spending around the world”.

Part of the problem, according to games industry insiders in Japan and the UK, is that the pipeline of “must-have” Nintendo Wii software is less strong now than it was six months ago.

On the most widely read gaming websites, there are few forthcoming Wii titles generating the sort of excitement that preceded the release of Mario Galaxy or Smash Brothers.

One big source of margin destruction has been the soaring yen, which rose 24 per cent against the dollar and 30 per cent against the euro in 2008.

Dragon Quest IX is scheduled for a March 28th release in Japan, exclusively for Nintendo DS. A North American release date has yet to be announced.