Microsoft, Nintendo Plan Venture ‘Infotainment’ Service Called Partial Substitute For Internet

With the Internet often slow and clumsy for many users, Microsoft Corp. and Nintendo Co. are hoping Japanese will turn to satellites as a cheaper and quicker way to reach on-line services.

Microsoft, Nintendo and Nomura Research Institute Ltd. announced a joint venture Wednesday aimed at providing “infotainment” to Japanese through satellites used to receive TV programs.

Microsoft officials described the service as a partial substitute for the Internet, which some find slow and expensive because of the long time needed to download data.

The venture is being tried in Japan, Microsoft Chairman Bill Gates said, because around 10 million Japanese households already have satellite tuners to receive television programs. He said there are no plans for expansion into the United States or elsewhere.

By buying a $100 “satellite modem” and paying a $10 monthly fee, users could receive a custom-tailored diet of information downloaded directly from a satellite to their computer’s hard disk. The information flow would be only one-way. Users would have to use regular telephone lines to send information.

Microsoft Network, an on-line service, would handle billing.

“What takes the most time on the Internet now is downloading huge files, and it ties up phone lines,” said Charles Stevens, a Microsoft vice president for the Far East region.

With the satellite, he said, users could receive huge chunks of data for no extra charge simply by leaving their computer on overnight.

The venture is scheduled to start in the middle of next year, the companies said. Nintendo, the video game maker based in Kyoto, Japan, will contribute 40 percent of the 1 billion yen ($9.1 million) startup investment, while Microsoft and Nomura Research, a unit of Japan’s top stock brokerage, will hold 30 percent each.

While content hasn’t been determined, Gates mentioned customized news, sports and weather information as possibilities.