"For us, Microsoft's approach wouldn't work," Iwata says

In an interview today with Reuters, Nintendo president and CEO Satoru Iwata revealed the company is planning to introduce new hardware and software for unspecified "emerging markets" over the next two years to take advantage of a rising middle class in many parts of the world; China immediately comes to mind, but this could also include emerging economies like India and Brazil. Iwata said this new console will not be the 3DS or Wii U, but something entirely different:

It would be difficult to enter those markets if we didn't create something new... For the mass market you need to provide something that most of the middle class can afford.

Iwata-san explained the new products will be aimed at "consumers with lower incomes and less gaming experience than those in developed countries;" as the Wii U continues to struggle, it's important for Nintendo to gain a foothold in these markets that will increase exponentially in buying power over the coming years. However, Nintendo will not follow Microsoft's lead after China recentlylifted its game console ban, as Microsoft announced last month it will release the Xbox One through a Chinese affiliate in the Shanghai Free-Trade Zone this September. Iwata-san elaborated:

We think the Chinese market has a lot of potential, but I don't think the lifting of the ban has solved all of the difficulties in entering it. We need to study it more... For us, Microsoft's approach wouldn't work.

Releasing hardware and games in China will be an arduous process, although it's not Nintendo's first foray into the country: since 2002, Nintendo has released select games in a limited capacity through iQue, a joint venture with a Chinese entrepreneur. Nintendo has not provided any more details, but could Iwata-san's comments today have something to do with the enigmatic "Quality of Life" platform he's been so crazy about lately? How do you think Nintendo should enter the market in China and other emerging nations? Let us know in the comments.

http://www.nintendolife.com/news/2014/05/nintendo_creating_a_new_console_for_emerging_markets_including_china

Sooo... iQue tU?

By what he described the "consumers with lower incomes and less gaming experience than those in developed countries;" , I can see a cheaper version of NDS (not 3ds) coming to China.
Again and always, people are gonna say Nintendo is a company selling kid toys

I can tell Nintendo never did research on Chinese gaming market. They just don't understand

IGN was right!!!

Like Ka-pi said, why not just release the Wii over there? It's cheap as hell to make and already has a large library.

That would be a good idea IMO.

I'd buy a home console 3DS.

"It's a me, Mao!"

"Nintendo will not be announcing any new hardware"...

OT: Hmm, entering into battle with smartphones/tablets and browser/social games will not end well, I think. This might have been a decent idea a decade ago but not now. Instead of trying to improve in the markets they are the most out of touch with (the West), they opt to try to penetrate the markets that are the least likely to adopt new consoles to begin with, regardless of pricing (the convenience segment will conquer these markets and consoles are losing relevance even in their strongest territories). In my honest opinion; this is a horrible plan in this day and age and shows that Nintendo are truly struggling to keep up with the modern market movements and development.

Seems to me like a fairly low risk venture with the potential for high reward. I am curious to see what Nintendo will do in these markets and I hope this turns out well.