Nintendo Courts Non-gamers in ‘About-Turn’ Strategy

This photo taken on January 13, 2023 shows a guest taking a photo with Mario during a preview of Super Nintendo World at Universal Studios in Los Angeles, California. (AFP)
This photo taken on January 13, 2023 shows a guest taking a photo with Mario during a preview of Super Nintendo World at Universal Studios in Los Angeles, California. (AFP)
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Nintendo Courts Non-gamers in ‘About-Turn’ Strategy

This photo taken on January 13, 2023 shows a guest taking a photo with Mario during a preview of Super Nintendo World at Universal Studios in Los Angeles, California. (AFP)
This photo taken on January 13, 2023 shows a guest taking a photo with Mario during a preview of Super Nintendo World at Universal Studios in Los Angeles, California. (AFP)

Once confined to rectangular screens, chirpy plumber Mario and pointy-eared Princess Zelda are popping up in theme parks and toy stores as Nintendo goes all out to win non-gamer fans.

It wasn't always this way: for many years, the Japanese company shied away from promoting products or creating media other than video games.

But its push for broader brand recognition over the past decade has reached the point where even Mario creator Shigeru Miyamoto describes Nintendo as something of a "talent agency" for its colorful characters.

A new area based on the "Donkey Kong" games was unveiled at the Universal Studios Japan amusement park on Tuesday, expanding Nintendo's zone there -- already a major tourist draw.

Its doors open on December 11, following last month's launch of the first ever Nintendo museum in a renovated factory in Kyoto.

At the box office, "The Super Mario Bros. Movie" was 2023's second-highest grossing title, with a sequel due in 2026 and a film based on Nintendo's "The Legend of Zelda" also on the way.

"Over the past decade, there has really been an about-turn" in Nintendo's strategy, said Florent Gorges, an expert on the company's history.

- 'Reclusive' -

The gaming giant started life in Japan's traditional former capital of Kyoto in 1889, producing playing cards.

For a long time, it took a "conservative" and "somewhat reclusive" approach to cashing in on its intellectual property, said Gorges.

"There was a certain culture of secrecy, taken to extremes within Nintendo, that made it very squeamish about trying new things," he told AFP.

Hiroshi Yamauchi, company president for over half a century between 1949 and 2002, "hated" the idea of any kind of company mascot, Gorges added.

An early foray outside of the gaming world also proved tricky.

In the 1990s, Nintendo entrusted its Mario IP to a Hollywood production team who made a live-action movie that was roundly panned.

The flop may have contributed to its cautious approach, until disappointing sales of the Nintendo 64 and GameCube consoles in the following decade forced a re-think.

- Wii success -

The two next consoles -- the portable DS with two screens, and the remote-controlled Wii -- were designed to attract non-gamers.

Each sold more than 100 million units and remain among Nintendo's biggest commercial hits.

But when updated versions of these two consoles did not perform so well, the company decided to again venture beyond video games.

Fast-forward to today, and Nintendo is "selling soft toys and sweets, allowing its characters into consumers' everyday lives", said Hideki Yasuda of Toyo Securities.

Nintendo is sometimes compared to Disney, but its business model differs from that of the US giant, which acquires and develops existing franchises, such as Star Wars, said Kensaku Namera of Nomura Securities.

Instead, the Japanese company "is focused on what it can do on its own", and so collaborates with external studios and creators for its films and other projects.

Going forward the firm may draw inspiration from the success of Pokemon, which began as a Nintendo game but now spans movies, playing cards, and a merchandise empire controlled by several entities.

That has "really pushed Nintendo to further exploit its franchises", Namera told AFP.

"Many children love Pikachu, and buy soft toys even if they have never played the game," he said, referring to Pokemon's famous electric mouse.

Game and console sales account for over 90 percent of Nintendo's revenues, so exposure to characters such as Mario or friendly dinosaur Yoshi could be "a trigger" to attract more people to consoles, Namera said.



Firms and Researchers at Odds over Superhuman AI

Three-quarters of respondents to a survey by the US-based Association for the Advancement of Artificial Intelligence agreed that 'scaling up' LLMs was unlikely to produce artificial general intelligence. Joe Klamar / AFP/File
Three-quarters of respondents to a survey by the US-based Association for the Advancement of Artificial Intelligence agreed that 'scaling up' LLMs was unlikely to produce artificial general intelligence. Joe Klamar / AFP/File
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Firms and Researchers at Odds over Superhuman AI

Three-quarters of respondents to a survey by the US-based Association for the Advancement of Artificial Intelligence agreed that 'scaling up' LLMs was unlikely to produce artificial general intelligence. Joe Klamar / AFP/File
Three-quarters of respondents to a survey by the US-based Association for the Advancement of Artificial Intelligence agreed that 'scaling up' LLMs was unlikely to produce artificial general intelligence. Joe Klamar / AFP/File

Hype is growing from leaders of major AI companies that "strong" computer intelligence will imminently outstrip humans, but many researchers in the field see the claims as marketing spin.

The belief that human-or-better intelligence -- often called "artificial general intelligence" (AGI) -- will emerge from current machine-learning techniques fuels hypotheses for the future ranging from machine-delivered hyperabundance to human extinction, AFP said.

"Systems that start to point to AGI are coming into view," OpenAI chief Sam Altman wrote in a blog post last month. Anthropic's Dario Amodei has said the milestone "could come as early as 2026".

Such predictions help justify the hundreds of billions of dollars being poured into computing hardware and the energy supplies to run it.

Others, though are more skeptical.

Meta's chief AI scientist Yann LeCun told AFP last month that "we are not going to get to human-level AI by just scaling up LLMs" -- the large language models behind current systems like ChatGPT or Claude.

LeCun's view appears backed by a majority of academics in the field.

Over three-quarters of respondents to a recent survey by the US-based Association for the Advancement of Artificial Intelligence (AAAI) agreed that "scaling up current approaches" was unlikely to produce AGI.

'Genie out of the bottle'

Some academics believe that many of the companies' claims, which bosses have at times flanked with warnings about AGI's dangers for mankind, are a strategy to capture attention.

Businesses have "made these big investments, and they have to pay off," said Kristian Kersting, a leading researcher at the Technical University of Darmstadt in Germany and AAAI member.

"They just say, 'this is so dangerous that only I can operate it, in fact I myself am afraid but we've already let the genie out of the bottle, so I'm going to sacrifice myself on your behalf -- but then you're dependent on me'."

Skepticism among academic researchers is not total, with prominent figures like Nobel-winning physicist Geoffrey Hinton or 2018 Turing Prize winner Yoshua Bengio warning about dangers from powerful AI.

"It's a bit like Goethe's 'The Sorcerer's Apprentice', you have something you suddenly can't control any more," Kersting said -- referring to a poem in which a would-be sorcerer loses control of a broom he has enchanted to do his chores.

A similar, more recent thought experiment is the "paperclip maximiser".

This imagined AI would pursue its goal of making paperclips so single-mindedly that it would turn Earth and ultimately all matter in the universe into paperclips or paperclip-making machines -- having first got rid of human beings that it judged might hinder its progress by switching it off.

While not "evil" as such, the maximiser would fall fatally short on what thinkers in the field call "alignment" of AI with human objectives and values.

Kersting said he "can understand" such fears -- while suggesting that "human intelligence, its diversity and quality is so outstanding that it will take a long time, if ever" for computers to match it.

He is far more concerned with near-term harms from already-existing AI, such as discrimination in cases where it interacts with humans.

'Biggest thing ever'

The apparently stark gulf in outlook between academics and AI industry leaders may simply reflect people's attitudes as they pick a career path, suggested Sean O hEigeartaigh, director of the AI: Futures and Responsibility program at Britain's Cambridge University.

"If you are very optimistic about how powerful the present techniques are, you're probably more likely to go and work at one of the companies that's putting a lot of resource into trying to make it happen," he said.

Even if Altman and Amodei may be "quite optimistic" about rapid timescales and AGI emerges much later, "we should be thinking about this and taking it seriously, because it would be the biggest thing that would ever happen," O hEigeartaigh added.

"If it were anything else... a chance that aliens would arrive by 2030 or that there'd be another giant pandemic or something, we'd put some time into planning for it".

The challenge can lie in communicating these ideas to politicians and the public.

Talk of super-AI "does instantly create this sort of immune reaction... it sounds like science fiction," O hEigeartaigh said.