Video-on-Demand Coming to Wii in 2009

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Video-on-Demand Coming to Wii in 2009

In a move widely anticipated ever since the XBox expanded its service with Netflix, Nintendo announced over the Christmas holiday that it is adding a video-on-demand option to its popular Wii console.

Video-on-demand is one of the most competitive areas in consumer electronics with more and more companies showing a willingness to infuse their main course offering (be it a Blu-ray player or a gaming system) with a bit of saucy video content.

Currently, there are plenty of options for the person who wants video quick and easy. There are specialized set-top boxes for internet services (like Roku's Netflix Box), improved offerings from satellite providers, all-in-one video services (like the Vudu, or even Apple TV), and the strong pull of internet video like YouTube and Hulu.

Mix them all up and you have a huge royal rumble showdown that is either destined to get ugly, or might get big enough to accommodate everyone. With the appetite shown by consumers in the last year for all these services, we're betting on the latter for now.

Over the last year, several rumors placed Nintendo near a VOD announcement. If you've followed Chris Kohler's coverage on Game|Life, you know that Nintendo of America CEO Reggie Fils-Aimes had previously knocked off related rumors surrounding HD content on the Wii, but video was never completely dismissed.

It seems like Nintendo finally felt it was the right time to use their huge reach in the living room to make their mark in this space.

Here's the gist of the announcement:

    * Nintendo will partner with Japanese advertising giant Dentsu to create the service, which will offer videos through the Internet.
    * Nintendo will start offering VOD in Japan in 2009 during a trial period at first, then it will expand to other countries.
    * VOD options means it's highly likely that a large storage accessory will be announced soon. Currently, the Wii offers 512 MB of internal flash memory storage, plus up to 2 GB-4 GB in an external SD card. That's fine if you want to order up a few 23-minute TV shows, but something much larger will be needed for movies.
    * The two companies will develop original programming for the Wii, which will be made available through the net. The company is considering developing videos for free but some (or many?) will be available for an as-yet-undisclosed fee.

But perhaps the most important part of the announcement was the mention of a prominent stat: 40% of the 35 million Wii consoles already sold are linked to the internet.

With that level of popularity, the Nintendo Wii has a chance, if it does this well, to obliterate the VOD numbers of its rivals.