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Caramello
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(05-13-2014, 03:44 PM)
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You can now view the English translation here:

http://www.nintendo.co.jp/ir/en/libr...8qa/index.html

For the fiscal year ending in March 2015, I understand the Wii U hardware sales unit forecast is 3.60 million units. I would like to know about the relationship between this number and this fiscal year’s Wii U hardware production plan, and its impact on profit and loss. Some other things you explained today are the utilization of various network services of the Wii U platform and game-compatible figurines. In the past, I believe Nintendo’s philosophy, in principle, was that interesting and unique software drove hardware sales. I would like to confirm whether this idea remains the same.

Satoru Iwata (President):

We set the sales unit forecast of 3.60 million units of Wii U hardware as the target that we should at least reach by making the releases of two key titles for this fiscal year from the very popular, evergreen franchises that have been under development since before the launch of Wii U hardware, “Mario Kart 8” and “Super Smash Bros. for Wii U,” the pillars of our entire marketing strategy for this year. These two titles can be enjoyed alone or with others, and we believe they will encourage those who do not own Wii U hardware to purchase it. With respect to the impact of Wii U hardware sales on profit and loss, in order to sell 3.60 million units, we have to produce some more hardware units on top of our current hardware inventory. However, since the loss arising due to the hardware production costs being higher than our trade price was taken into account in the previous fiscal year, you could assume that there will be almost no loss this fiscal year for the sales of the 3.60 million hardware units.

As to whether our philosophy has changed or not, the basic idea that consumers reluctantly purchase hardware only because they want to play with appealing software remains unchanged. I only mentioned the Wii U software “Mario Kart 8” and “Super Smash Bros. for Wii U” today, but of course, we are going to talk about other Wii U titles at E3 (Electronic Entertainment Expo) in Los Angeles in June. Also, our internal software development teams directed by Shigeru Miyamoto (Senior Managing Director and General Manager of Entertainment Analysis & Development Division) are committed to developing several titles that focus on offering unique experiences only made possible with the Wii U GamePad in order for a large number of people to understand the Wii U GamePad’s significance. The titles we are preparing to show you at E3 vary from being nearly complete to still in the early phases of development but with the core of its appeal noticeable. Therefore, our strategy of focusing on software has not changed.

As for utilizing character figurines, Activision has released video game titles from the Skylanders series over the past three years and Disney Interactive released the software title, “Disney Infinity,” last year. Both video game series are compatible with character figurines and have created an extremely large market for these products. In the overseas markets especially, a huge amount of space has been allocated to those product lines at retail stores with a large market presence. Our primary focus, however, is not to develop software that is compatible with figurines. Rather, we have been developing figurines since last year because we believe there may be different approaches or ways to appeal to consumers by using them, and this could also be one way for Nintendo to utilize its character IP. At the Corporate Management Policy Briefing in January this year, we talked about our policy of actively utilizing character IP imagining that we would be able to show you the actual NFP product, which I mentioned today, at E3. However, when we talked about actively utilizing character IP, people were only focused on to whom and how licenses would be granted. So today, I decided to talk about our own project. Still nothing has changed in our belief that, for video game platforms, hardware is driven by software and our basic approach of developing new, unique and incredibly interesting software has not changed at all. We will work hard to meet your expectations.

In your presentation, you made it clear that in this fiscal year Nintendo would prioritize restoration of the balance of revenue and expenses. My question deals with the company’s mid-term prospects. I would like Mr. Iwata to tell us his current thoughts on what he would like the following two terms (the fiscal year ending March 2016 and the fiscal year ending March 2017) to mean for the company. Given that Nintendo already made a significant devaluation of inventory in the previous fiscal year, I suppose you are envisioning that the financial performance of the company is set to recover by some extent this fiscal year, but what are the key factors that will drive the business from the next fiscal year? Or, do you think that investment will expand yet again from the new businesses in and after the next fiscal year? Please tell us how you would expect the company’s financial performance to change from the next fiscal year.

Iwata:

With regard to this fiscal year, I feel that it is essential for us to restore the balance of revenue and expenses that has been lost temporarily in order to gain trust in the financial markets. On the other hand, while it is difficult to talk about the next two fiscal years using concrete figures, I feel that in the next fiscal year we will be able to be more specific about the kinds of mid-term projects that we discussed at the Corporate Management Policy Briefing in January, and in fact, we will even start to offer some of them to the public. In the following fiscal year, I expect some of these measures to start serving as a source of profits for the company. In this sense, instead of seeing a great and sudden recovery in our profitability in the next fiscal year, I am rather expecting to be able to report Nintendo-like profits from around the following fiscal year.

The company has set multiple measures for its mid-term future, but I think that sometimes it is necessary to make a big investment while maintaining a sound revenue-expenses balance. From this perspective, I would like to know whether you have set any priorities.

Iwata:

While I believe that increasing the long-term corporate value of the company is naturally our most important task, as it is impossible to make that our sole priority without regard to the short-term revenue-expenses balance on an annual basis, I think it is necessary to make investments while maintaining a certain balance of revenue and expenses. However, in terms of when we will be able to regain Nintendo-like profits, I would ask you to give us a bit more time and see how we do in the following two years.

As for our focus, we are already going to utilize, for example, our character IP from this fiscal year in ways that I described in my presentation today, so it is perhaps easier to see relatively early on the actual content of this new business endeavor and understand more clearly what we are going to do with it. Also, regarding what I mentioned at the Corporate Management Policy Briefing in January about our efforts to go into a new business area, namely our platform business that seeks to enrich people’s QOL (Quality of Life) in enjoyable ways, I would like to talk more specifically about the kind of business we have in mind within this year, and the current time frame we are working on puts the actual deployment of the initiative in the next fiscal year, with contributions to our profitability to follow in the following fiscal year. Moreover, I feel that we will be able to further stimulate our platform business by taking advantage of smart devices, and I think that we will be able to provide detailed information on this as well as some concrete results between the current and the next fiscal years. Also, the idea I mentioned about redefining the definition of video game platforms will also require approximately two years. This is how we would like to talk more about our mid-term measures and lead them to actual results. However, we will not be able to create a good environment for the company unless projects are undertaken simultaneously, so this is the kind of timeframe that we have in mind.

I would like to know when Nintendo will launch its next-generation video game systems. Should we expect Nintendo not to introduce new hardware in the next three years? It appears that financial analysts and investors are now expecting Nintendo to make a real comeback with its next-generation hardware, but given the competitive environment that surrounds the company, should we perhaps think that it is now becoming more likely that Nintendo’s next-generation hardware will be introduced earlier than Nintendo expected? Also, although I suppose the answer to this question will be that your next-generation hardware will have to adopt a groundbreaking design concept that has never been seen before, I would like Mr. Iwata to tell me, to the extent possible, what kinds of ideas he has at the moment in terms of bringing out something that we have never experienced before.

Iwata:

Once we launch a new platform, we naturally start to prepare for the next one. As it takes several years to develop a single platform, if you ask us whether we are preparing for our next system, then the correct response will be that we are always developing new hardware. On the other hand, the most difficult question for us to answer in public in concrete terms is when we are going to launch our new hardware and what kind of hardware we are going to launch, and I am afraid that I cannot talk about this in more detail. However, I can certainly assure you that we are not at a dead end of any kind in which we are out of ideas for developing new hardware. I of course believe that launching new hardware will not produce good results unless we first make sure that those who have already purchased our platforms are satisfied. We will continue to work hard to ensure that consumers who already own our platforms are satisfied, and make sure that people will continue to see great value in our software, but I would like to say that we are preparing for our next hardware system, and in fact, we already have a clear idea to some extent about the direction our next hardware is going to take.

I would like to ask you about your mid-to-long term corporate strategy from a macro perspective. Mr. Iwata, what do you think will be the keywords for the entertainment market from now on? When I think of keywords from your various explanations at the Corporate Management Policy Briefing in January, “non-wearable” or “hardware-software integrated business model” are candidates, and when I think in terms of the figurine project that you mentioned in your presentation today, something like “from virtual to real” could also be one of the candidates. On the other hand, when I look at other companies’ ideas such as “SmartGlass” and, as Google is now attempting to realize automated driving, the current trend appears to tell me that other companies too are trying to redefine the meaning of entertainment in their own ways and to improve people’s QOL by taking a systematic approach to the functionality of their devices. Considering my interpretation of the situation, I would like to hear Mr. Iwata’s opinion on what the keyword(s) will be for Nintendo from now on.

Iwata:

I think that many utility products in the world have been designed and produced with the purpose of improving people’s QOL. Nintendo has added “in enjoyable ways” to the definition of entertainment. By defining entertainment as activities that “improve people’s QOL in enjoyable ways,” we are trying to expand the definition of entertainment as much as possible. Nintendo has a history of approximately 125 years, but when it comes to video games, the company has been engaged in that business for 31 years since the Japanese launch of the Family Computer System (Nintendo Entertainment System). In other words, Nintendo has been known as a video game company only for one-quarter of our history, but people around the world, even including many at Nintendo, tend to believe that Nintendo is a video game company and even think that Nintendo should not or must not do anything other than making video games. This, I believe shows that over the past 30 years or so, the video game business has been running smoothly. However, whether we have a narrow or broad definition of video games can make a huge difference. I suppose people caught a glimpse of the potential with “Brain Age” and “nintendogs” for Nintendo DS, and “Wii Sports” and “Wii Fit” for Wii, which Nintendo developed by expanding the definition of video games and these titles were eventually well-received by many people around the world. In video games, players interact with a computer and receive output as the result of their input. If players realize that they will be able to receive greater rewards in the form of computer output than the amount of effort they put in, they will be tempted to repeat that process. Because that process makes players feel comfortable, there is a great sense of excitement and achievement. I think that this is the kind of know-how you need to make video games, but it can be applied to much wider fields than you might imagine today. When I said that health is going to be a theme of our QOL initiative, I referred to it as an example of one of these fields. More specifically, talking in general about health, many people are well aware of what we should do for their health, but at the same time, many people find it difficult to commit themselves to it. So, the questions I posed back then were, “What do you think will happen if we can apply our know-how on keeping consumers engaged and entertained on a continual basis, and make it fun to complete such endeavors?” Back to your original question, “not defining our business fields narrowly” is key for us.

Not to change the subject, but many years ago, people used to connect with video games only when they were sitting in front of a TV set. Other than that, people did not have any relationship with video games back in those days. Then, handheld video game systems were introduced, and people started to carry around their video game experiences outside the home. And today, many people carry around smart devices and use them in their free time. We have been studying how we can best incorporate our video games into the time that people use their smart devices. I introduced our “Mario Kart TV” as an example during my presentation today. Although this is just the beginning of our initial approach with that concept, players of “Mario Kart 8” can spend a portion of the time they interact with their smart devices to connect with the Mario Kart game. In the future, it is possible we will decide that certain elements of our video games should be enjoyed when players use their smart devices. In other words, we will try to ensure that there is more than one device, more than one location or more than one environment where users can access our products and make sure those users can interact with our products in various environments. I also mentioned in January (at the Corporate Management Policy Briefing) that we would change the definition of our platforms from being device-based to NNID-account-based. When our platforms are account-based, we can expand the number of applicable devices. In order to have rich and high-quality game experiences, we always want our users to play with our dedicated game systems that are specifically designed to provide such unique experiences, while at the same time, we may be able to select some portions of these games and make them available on other devices. Also, by encouraging users to interact with the physical figurines that I mentioned today, we may be able to create brand-new entertainment. In these ways, another critical point for us to carefully consider, or another key point for us, is how we can and should incorporate our entertainment offerings into the more fragmented time and opportunities of different consumers.

At the Corporate Management Policy Briefing that the company held in January, you talked about several new ways to change how you conduct business. I understand that there will be new businesses for the company, such as QOL, but how does the company intend to change its organizational structure and development processes in order to adapt in line with the times and deploy these new businesses? I hope to hear some specific examples in this regard.

Iwata:

To answer your question, I think I should explain what we have been doing about our internal organization in response to our core management policy. For one thing, as previously announced, we have integrated our hardware development divisions and established the “Integrated Research & Development Division.” Until this change took place, we used to develop our handheld video game devices and home video game consoles in separate divisions. Of course, we did not simply merge two divisions into one. We know that we need to change how we manage this new division as well as how we create and manage new projects, and we are currently making progress on this. Also, the new R&D Development Center was built earlier this year, and our developers will move to their new offices in mid-June, after E3. After settling in, the developers who are now working at different buildings will be able to work together in the same building. As a result, our development of hardware and software can be done in a more unified fashion with individual developers being able to communicate directly with others more closely, and the different R&D teams that are currently working in separate rooms can work as one team in the same room. Of course, even now, our hardware development teams and software development teams work closely with each other, but because they belong to different departments under our current organizational structure, they are not necessarily able to visit others’ rooms freely. In the Development Center, we will create a space where developers from the four different R&D divisions can get together with others. This is another concrete example of what we are doing in order to establish an environment where unique and fun hardware-software integrated entertainment can be developed more smoothly.

In addition to these changes to the R&D divisions, in March we established a new department called the “Business Development Department.” Since the company released Family Computer System (Nintendo Entertainment System) in Japan and put it on the right track for sales growth, Nintendo has not needed to implement significant changes to its principle business structure. In other words, in comparison to many other companies, Nintendo used to have a smaller need for business development because, by maintaining a similar business structure, it was able to conduct its business and grow rather steadily. However, because the environment has greatly changed and Nintendo must create a new business structure and execute a variety of new endeavors that I have been addressing recently, we have established this new department that reports directly to me. We have gathered experts from a variety of different fields for this department. By working with others in the R&D divisions, these members have already been acting as contacts for a variety of different business partners, and have been making proposals and planting the seeds for discussion. The Business Development Department will play an important role in our company producing tangible outcomes for the topics we have been discussing recently: the active use of our character IP, future approach for the new markets, future of the new business fields, how we are going to change the definition of our future platforms and how we will take advantage of smart devices. These are the concrete examples that I can mention today to respond to your question.

- END -
Last edited by Caramello; 05-13-2014 at 03:59 PM.
oti xero
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(05-13-2014, 03:46 PM)
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Thank you for the link! Always interesting to read.
kubus
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(05-13-2014, 03:46 PM)
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Link is correct, but page gives an error right now.
ActStriker
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(05-13-2014, 03:47 PM)
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Originally Posted by kubus

Link is correct, but page gives an error right now.

It's working for me.
Jimmyfenix
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(05-13-2014, 03:48 PM)
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Originally Posted by kubus

Link is correct, but page gives an error right now.

Strange works for me!

Also

monome
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(05-13-2014, 03:49 PM)
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exerpts?
emb
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(05-13-2014, 03:49 PM)
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Originally Posted by kubus

Link is correct, but page gives an error right now.

I was getting the same thing. *shrug*
kubus
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(05-13-2014, 03:52 PM)
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Originally Posted by ActStriker

It's working for me.


Originally Posted by Jimmyfenix

Strange works for me!

Also

Yeah was expecting that avatarquote :P

Strange, it wasn't working on my destop, on my surface AND on mobile. But now the page loads on all devices. /shrug
Crowbear
Junior Member
(05-13-2014, 03:52 PM)
That first answer is the one that got mistranslated as the Wii U no longer being sold at a loss, I guess. Seemed weird at the time so it's nice to have that cleared up.

Originally Posted by Iwata

With respect to the impact of Wii U hardware sales on profit and loss, in order to sell 3.60 million units, we have to produce some more hardware units on top of our current hardware inventory. However, since the loss arising due to the hardware production costs being higher than our trade price was taken into account in the previous fiscal year, you could assume that there will be almost no loss this fiscal year for the sales of the 3.60 million hardware units.

jonno394
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(05-13-2014, 03:52 PM)
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Interesting excerpt regarding NNID accounts.

I also mentioned in January (at the Corporate Management Policy Briefing) that we would change the definition of our platforms from being device-based to NNID-account-based. When our platforms are account-based, we can expand the number of applicable devices. In order to have rich and high-quality game experiences, we always want our users to play with our dedicated game systems that are specifically designed to provide such unique experiences, while at the same time, we may be able to select some portions of these games and make them available on other devices. Also, by encouraging users to interact with the physical figurines that I mentioned today, we may be able to create brand-new entertainment

and another one. Seems like Nintendo want a business where gaming is just one of the things they do going forward. This is a smart move by Nintendo, I just think they simply cannot survive with only gaming and hardware as their source of income.

As I said earlier today, people, including ourselves, have considered Nintendo to be a video game company for the last 30 years. However, I believe that the intrinsic nature of entertainment is much broader than how we see it today. We believe that we may be able to establish some sort of new core business if we consider our role as an entertainment company in a broader sense. Again, we are not pessimistic about the future of the video game business, nor have we given up on earning profit from the existing video game business. Rather, it is an expression of our determination to become a more stable company, constantly achieving better financial results regardless of the fluctuations in our video game business.

Last edited by jonno394; 05-13-2014 at 03:57 PM.
jvm
Gamasutra.
(05-13-2014, 03:53 PM)
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Subbed for later reading.
Mysterious
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(05-13-2014, 03:54 PM)
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Originally Posted by jonno394

Interesting excerpt

Well that makes sense since across the entire technology industry, everything is moving from hardware-based to service-based, including Windows of all things which has been traditionally linked to hardware. iOS does this. PlayStation does this. Xbox seems like it will do this in the future as well.
Dragon
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(05-13-2014, 03:54 PM)
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Originally Posted by jonno394

Interesting excerpt

This would make me buy digital games on Nintendo platforms. It's great that they're acknowledging this and hopefully we hear something about it at E3.
kubus
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(05-13-2014, 03:56 PM)
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Regarding that "Nintendo announced new consoles for upcoming market" thing, as expected that headline was a bit blown up.

Therefore, as I explained at the Corporate Management Policy Briefing in January, we will be making changes to our approach for the new markets on the premise that we need something specific for them. We think we need a new approach overall, including hardware, so it will be difficult to show you a specific suggestion and produce results immediately this year.
[...]
Although I cannot talk about the actual approach to the new markets, or the specifics of the product, price and timing, at the moment, we would like to utilize some other occasion in the future to talk more about this topic.

Also no mention of the 2015-2016 release date for "the new console". What was Reuters thinking? Hardware could mean a console, but Iwata never explicitly said such a thing.

And some interesting quotes regarding Quality of Life platform:

Currently, Nintendo has both the home console and handheld platforms, and we would see great results if both of these platforms performed very well; however, our business would become mediocre if one of them faltered, and if both of them were to falter, it would very negatively affect our business. We have decided to establish new business platforms not for being pessimistic about the future of the video game business, but to prepare for a challenging situation. Without other pillars, the faltering of the video gaming business would directly have a negative influence on our financial results and the market would respond with harsh criticism. Considering the situation, I would say that Nintendo should consider establishing other pillars that leverage its strengths. As I said earlier today, people, including ourselves, have considered Nintendo to be a video game company for the last 30 years. However, I believe that the intrinsic nature of entertainment is much broader than how we see it today. We believe that we may be able to establish some sort of new core business if we consider our role as an entertainment company in a broader sense. Again, we are not pessimistic about the future of the video game business, nor have we given up on earning profit from the existing video game business. Rather, it is an expression of our determination to become a more stable company, constantly achieving better financial results regardless of the fluctuations in our video game business.

Last edited by kubus; 05-13-2014 at 04:00 PM.
rpmurphy
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(05-13-2014, 03:57 PM)
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I don't know if this was talked about, but:

In addition to these changes to the R&D divisions, in March we established a new department called the “Business Development Department.” Since the company released Family Computer System (Nintendo Entertainment System) in Japan and put it on the right track for sales growth, Nintendo has not needed to implement significant changes to its principle business structure. In other words, in comparison to many other companies, Nintendo used to have a smaller need for business development because, by maintaining a similar business structure, it was able to conduct its business and grow rather steadily. However, because the environment has greatly changed and Nintendo must create a new business structure and execute a variety of new endeavors that I have been addressing recently, we have established this new department that reports directly to me. We have gathered experts from a variety of different fields for this department. By working with others in the R&D divisions, these members have already been acting as contacts for a variety of different business partners, and have been making proposals and planting the seeds for discussion. The Business Development Department will play an important role in our company producing tangible outcomes for the topics we have been discussing recently: the active use of our character IP, future approach for the new markets, future of the new business fields, how we are going to change the definition of our future platforms and how we will take advantage of smart devices. These are the concrete examples that I can mention today to respond to your question.

Last edited by rpmurphy; 05-13-2014 at 03:59 PM.
jonno394
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(05-13-2014, 04:01 PM)
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This one re: figurines confuses me slightly

Our primary focus, however, is not to develop software that is compatible with figurines. Rather, we have been developing figurines since last year because we believe there may be different approaches or ways to appeal to consumers by using them, and this could also be one way for Nintendo to utilize its character IP.

Is he saying that they're looking at making figurines that may have no impact in games and selling these?
Starwolf_UK
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(05-13-2014, 04:04 PM)
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Originally Posted by Crowbear

That first answer is the one that got mistranslated as the Wii U no longer being sold at a loss, I guess. Seemed weird at the time so it's nice to have that cleared up.

I can see how that mistake is made. It still means future Wii Us produced will not be at a loss.
monome
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(05-13-2014, 04:06 PM)
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Originally Posted by jonno394

This one re: figurines confuses me slightly



Is he saying that they're looking at making figurines that may have no impact in games and selling these?

he just says their figurines are not strictly attached to the Skylander game/biz model.
also consider Nintendo will treat them as a plateform. So do not judge them on their v1 but rather according to the potential producing smart figurines entiles.
valouris
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(05-13-2014, 04:07 PM)
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I of course believe that launching new hardware will not produce good results unless we first make sure that those who have already purchased our platforms are satisfied. We will continue to work hard to ensure that consumers who already own our platforms are satisfied, and make sure that people will continue to see great value in our software, but I would like to say that we are preparing for our next hardware system, and in fact, we already have a clear idea to some extent about the direction our next hardware is going to take.

sounds good to me

Originally Posted by Starwolf_UK

I can see how that mistake is made. It still means future Wii Us produced will not be at a loss.

I am not entirely sure, but from what I understand he means that they will sell the WiiUs that they have already manufactured, and the loss for them has been recorded in the previous fiscal year when they missed their projections by loads of units. So if they manufacture less from now on (which is quite logical with the reduced demand) and they sell what they have already taken a hit from, they will not show as much loss in the current and next fiscal years.

Maybe? I don't know nothing of economics and business stuff
Last edited by valouris; 05-13-2014 at 04:11 PM.
BY2K
Membero Americo
(05-13-2014, 04:07 PM)
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The titles we are preparing to show you at E3 vary from being nearly complete to still in the early phases of development but with the core of its appeal noticeable. Therefore, our strategy of focusing on software has not changed.

I don't think they are kidding when they say the Digital Event is "The one we've been waiting for."

Our primary focus, however, is not to develop software that is compatible with figurines. Rather, we have been developing figurines since last year because we believe there may be different approaches or ways to appeal to consumers by using them, and this could also be one way for Nintendo to utilize its character IP.

So they don't want to make games that makes it compelling to buy figurines, they want to make figurines that are compelling by themselves that can be used in some games?

but I would like to say that we are preparing for our next hardware system, and in fact, we already have a clear idea to some extent about the direction our next hardware is going to take.

They are almost 100% sure of where they are going with the new system? Interesting.
Last edited by BY2K; 05-13-2014 at 04:09 PM.
jonno394
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(05-13-2014, 04:07 PM)
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Originally Posted by monome

he just says their figurines are not strictly attached to the Skylander game/biz model.

Yeah I assumed that, just wanted someone to clarify. I wonder if this means that theoretically they are planning to roll out their DLC via figurines etc
Hoodbury
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(05-13-2014, 04:08 PM)
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To me it doesn't seem good that he is still clinging to the "one game can save a console" concept. He must not have seen our chalkboard meme.

The fate of a video game system is often influenced greatly by the introduction of a single title. As many of you probably remember, before the release of the Pokémon game, Game Boy had been showing slow growth, and many people wondered whether it was the end of Game Boy. But the Pokémon game singlehandedly changed the landscape of the system, which then started to show the strongest sales in the lifecycle of the system.

Last edited by Hoodbury; 05-13-2014 at 04:11 PM.
Crowbear
Junior Member
(05-13-2014, 04:09 PM)

Originally Posted by Starwolf_UK

I can see how that mistake is made. It still means future Wii Us produced will not be at a loss.

No, he says the production price is still higher than what they sell each unit for. They're just going to sell a bunch of them that don't have their production costs counted this year because they were made last year, so they'll make a profit/only a small loss on Wii U hardware overall this year.
Plinko
Wildcard berths that can't beat teams without a winning record should have homefield advantage
(05-13-2014, 04:11 PM)
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Originally Posted by BY2K

I don't think they are kidding when they say the Digital Event is "The one we've been waiting for."



So they don't want to make games that makes it compelling to buy figurines, they want to make figurines that are compelling by themselves that can be used in some games?



They are almost 100% sure of where they are going with the new system? Interesting.

To be fair, they should have been mass-marketing figures like that for years.
monome
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(05-13-2014, 04:12 PM)
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Originally Posted by jonno394

Yeah I assumed that, just wanted someone to clarify. I wonder if this means that theoretically they could roll out their DLC via figurines etc

possibly, yes.

I just think they consider figurines as a plateform. To be used with Nintendo hardware, 3rd party hardware, with potential 3rd party hardware licensing from them, physical play, digital play, promotion, etc... basically a plateform that stands on its own rather than some console add-on.
KingSnake
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(05-13-2014, 04:13 PM)
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Originally Posted by jonno394

This one re: figurines confuses me slightly



Is he saying that they're looking at making figurines that may have no impact in games and selling these?

They already stated that they are building a platform, some kind of framework to use the figurines with. So it's not just one game that makes advantage of the NFP and the figurines can be used beyond that. We will see how.

Originally Posted by Hoodbury

To me it doesn't seem good that he is still clinging to the "one game can save a console" concept. He must not have seen our chalkboard meme.

Yeah, but it is rather moved to "compelling software" than "1 game" and they are realistic about the potential:

As to whether our philosophy has changed or not, the basic idea that consumers reluctantly purchase hardware only because they want to play with appealing software remains unchanged. I only mentioned the Wii U software “Mario Kart 8” and “Super Smash Bros. for Wii U” today, but of course, we are going to talk about other Wii U titles at E3 (Electronic Entertainment Expo) in Los Angeles in June. Also, our internal software development teams directed by Shigeru Miyamoto (Senior Managing Director and General Manager of Entertainment Analysis & Development Division) are committed to developing several titles that focus on offering unique experiences only made possible with the Wii U GamePad in order for a large number of people to understand the Wii U GamePad’s significance. The titles we are preparing to show you at E3 vary from being nearly complete to still in the early phases of development but with the core of its appeal noticeable. Therefore, our strategy of focusing on software has not changed.

Last edited by KingSnake; 05-13-2014 at 04:18 PM.
Malus
Junior Member
(05-13-2014, 04:17 PM)
Sounds like they're not making any Skylanders/Disney Infinitey clone.
soultron
I will snowboard
into a PRISON
(05-13-2014, 04:17 PM)
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That Pokemon G1 on Gameboy HW throwback analogy is making me laugh. Jesus. The landscape was completely different at that time. Less HW diversity across the entire market, mobile disruption(s) didn't exist, less games released per month than we have now, DD didn't exist, etc.
BramVD
Member
(05-13-2014, 04:18 PM)
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That was a whole lot of nothing tbh.
GCX
Member
(05-13-2014, 04:20 PM)
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Originally Posted by Hoodbury

To me it doesn't seem good that he is still clinging to the "one game can save a console" concept. He must not have seen our chalkboard meme.

I don't think he's really clinging to "one game to save them all" idea. He's just trying to calm the investors while there's some really fundamental changes going on within Nintendo and they're about to change their focus to new businesses.

Iwata knows that Wii U isn't the thing that will start making them money.
kubus
Member
(05-13-2014, 04:21 PM)
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Another mildly interesting quote about when we can expect QOL:

Also, regarding what I mentioned at the Corporate Management Policy Briefing in January about our efforts to go into a new business area, namely our platform business that seeks to enrich people’s QOL (Quality of Life) in enjoyable ways, I would like to talk more specifically about the kind of business we have in mind within this year, and the current time frame we are working on puts the actual deployment of the initiative in the next fiscal year, with contributions to our profitability to follow in the following fiscal year

As for the NFC figurines: it sounds very interesting and I hope Nintendo will deliver at E3. I'm just thinking out loud here, but perhaps the motivation behind the Mario McDonalds toys that were rolled out over the last year in Japan and Europe (don't know if the US got them) was to test the water for a Nintendo figurine line?

Those McDonalds toys were really popular here and they were frequently sold out of them. Mario is still popular.
nikatapi
Member
(05-13-2014, 04:21 PM)
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Originally Posted by Hoodbury

To me it doesn't seem good that he is still clinging to the "one game can save a console" concept. He must not have seen our chalkboard meme.

Yeah this shows that they don't seem to understand the need for a continuous flow of game releases on the system, they must think that one title can change it all.

The difference is that gameboy was pretty cheap at the time Pokemon released, while no one will buy a 300$ system to play a single game.

Overall pretty disappointing Q&A, full of promises but nothing concrete.
KingSnake
Member
(05-13-2014, 04:22 PM)
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Originally Posted by soultron

That Pokemon G1 on Gameboy HW throwback analogy is making me laugh. Jesus. The landscape was completely different at that time. Less HW diversity across the entire market, mobile disruption(s) didn't exist, less games released per month than we have now, DD didn't exist, etc.

That's an answer to a question about the low targets for the next year and it's practically "Miracles can happen, but we decided to be conservative this year and focus on keeping profitability under control rather than shoot for the sky." Context is everything.
Cygnus X-1
Member
(05-13-2014, 04:22 PM)
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At the Corporate Management Policy Briefing that the company held in January, you talked about several new ways to change how you conduct business. I understand that there will be new businesses for the company, such as QOL, but how does the company intend to change its organizational structure and development processes in order to adapt in line with the times and deploy these new businesses? I hope to hear some specific examples in this regard.

---------

Iwata:

To answer your question, I think I should explain what we have been doing about our internal organization in response to our core management policy. For one thing, as previously announced, we have integrated our hardware development divisions and established the “Integrated Research & Development Division.” Until this change took place, we used to develop our handheld video game devices and home video game consoles in separate divisions. Of course, we did not simply merge two divisions into one. We know that we need to change how we manage this new division as well as how we create and manage new projects, and we are currently making progress on this. Also, the new R&D Development Center was built earlier this year, and our developers will move to their new offices in mid-June, after E3. After settling in, the developers who are now working at different buildings will be able to work together in the same building. As a result, our development of hardware and software can be done in a more unified fashion with individual developers being able to communicate directly with others more closely, and the different R&D teams that are currently working in separate rooms can work as one team in the same room. Of course, even now, our hardware development teams and software development teams work closely with each other, but because they belong to different departments under our current organizational structure, they are not necessarily able to visit others’ rooms freely. In the Development Center, we will create a space where developers from the four different R&D divisions can get together with others. This is another concrete example of what we are doing in order to establish an environment where unique and fun hardware-software integrated entertainment can be developed more smoothly.

In addition to these changes to the R&D divisions, in March we established a new department called the “Business Development Department.” Since the company released Family Computer System (Nintendo Entertainment System) in Japan and put it on the right track for sales growth, Nintendo has not needed to implement significant changes to its principle business structure. In other words, in comparison to many other companies, Nintendo used to have a smaller need for business development because, by maintaining a similar business structure, it was able to conduct its business and grow rather steadily. However, because the environment has greatly changed and Nintendo must create a new business structure and execute a variety of new endeavors that I have been addressing recently, we have established this new department that reports directly to me. We have gathered experts from a variety of different fields for this department. By working with others in the R&D divisions, these members have already been acting as contacts for a variety of different business partners, and have been making proposals and planting the seeds for discussion. The Business Development Department will play an important role in our company producing tangible outcomes for the topics we have been discussing recently: the active use of our character IP, future approach for the new markets, future of the new business fields, how we are going to change the definition of our future platforms and how we will take advantage of smart devices. These are the concrete examples that I can mention today to respond to your question.

I think this is the most important answer. This department will probably help Nintendo realize what the needs of the market are and which kind of trend are important to take int account by developing new hardware and new software.
Trago
Member
(05-13-2014, 04:22 PM)
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Originally Posted by BY2K

They are almost 100% sure of where they are going with the new system? Interesting.

And with Iwata mentioning Android and iOS, this could go in two different directions, either they take the Apple approach and be the only ones making hardware for the new Nintend-OS, or they take the Google approach and license the OS to other hardware companies so that they can make their own version.
DragonSworne
Satoru Iwata and his Trilateral Commission cronies are suppressing the truth about Retro. Wake up, sheeple!
(05-13-2014, 04:23 PM)
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So basically Nintendo has 3.6 million units sitting around in warehouses that they want to sell. How else could they have taken a hit on the hardware lose on these units last year if they aren't already manufactured?
Metal B
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(05-13-2014, 04:24 PM)
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Originally Posted by soultron

That Pokemon G1 on Gameboy HW throwback analogy is making me laugh. Jesus. The landscape was completely different at that time. Less HW diversity across the entire market, mobile disruption(s) didn't exist, less games released per month than we have now, DD didn't exist, etc.

There still single games, who can change the world. Look at Angry Bird, Farmville, Puzzle & Dragons, Minecraft, Wii Sports, Call of Duty. Dota, Skylanders, etc. Those single games were reasonable for many trends and one such exclusive title can help a console to get the ball rolling.
rokero
Member
(05-13-2014, 04:24 PM)
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Originally Posted by rpmurphy

I don't know if this was talked about, but:

Best part of the Q&A imo to me it says Nintendo is taking change seriously this time
Sendou
Member
(05-13-2014, 04:25 PM)

Originally Posted by DragonSworne

So basically Nintendo has 3.6 million units sitting around in warehouses that they want to sell. How else could they have taken a hit on the hardware lose on these units last year if they aren't already manufactured?

What about this, my friend:

Originally Posted by Iwata

With respect to the impact of Wii U hardware sales on profit and loss, in order to sell 3.60 million units, we have to produce some more hardware units on top of our current hardware inventory.

KingSnake
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(05-13-2014, 04:26 PM)
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Originally Posted by DragonSworne

So basically Nintendo has 3.6 million units sitting around in warehouses that they want to sell. How else could they have taken a hit on the hardware lose on these units last year if they aren't already manufactured?

we have to produce some more hardware units on top of our current hardware inventory

there will be almost no loss

So most of them are in stock, but less than 3.6 million.
Tigersuperman
Banned
(05-13-2014, 04:27 PM)
So QoL is basically almost directly confirmed to be fitness related. So Is Nintendo turning into Bally?
Sendou
Member
(05-13-2014, 04:28 PM)

Originally Posted by Tigersuperman

So QoL is basically almost directly confirmed to be fitness related. So Is Nintendo turning into Bally?

Err no. QoL means many things to Nintendo among them education and health. They're starting with health though.
Usobuko
Member
(05-13-2014, 04:30 PM)
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This is one of the more interesting titbits of Nintendo you can ever get. Will read later when I'm free.
Baron_Calamity
Member
(05-13-2014, 04:30 PM)
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Originally Posted by Tigersuperman

So QoL is basically almost directly confirmed to be fitness related. So Is Nintendo turning into Bally?

That would be weird.

soultron
I will snowboard
into a PRISON
(05-13-2014, 04:30 PM)
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Originally Posted by Metal B

There still single games, who can change the world. Look at Angry Bird, Farmville, Puzzle & Dragons, Minecraft, Wii Sports, Call of Duty. Dota, Skylanders, etc. Those single games were reasonable for many trends and one such exclusive title can help a console to get the ball rolling.

Out of their currently announced line up, the only one I can see standing a chance at that is Mario Kart 8. And mainly because they're actually marketing it.

But still, if it doesn't succeed, I don't know what will. I don't think Smash will have the mass market appeal of an approachable game like Mario Kart.

Furthermore, the pessimist in me thinks that Nintendo won't announce anything at E3 (or later this year via Directs) that will be the singular Hail Mary they might hope for.
claviertekky
Member
(05-13-2014, 04:33 PM)
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Originally Posted by soultron

the pessimist in me thinks that Nintendo won't announce anything at E3 (or later this year via Directs) that will be the singular Hail Mary they might hope for.

Oh come on. There's at least a Zelda Wii U game announcement.

After that though, I think there's no more left in the Wii U.

I would like to be proven wrong, but it's been almost two years, and that user base doesn't seem like it's going to inflate any time soon.
Last edited by claviertekky; 05-13-2014 at 04:36 PM.
Effect
Member
(05-13-2014, 04:33 PM)
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Originally Posted by Plinko

To be fair, they should have been mass-marketing figures like that for years.

It really was/is money being left and then burned on the table. It's not like they don't get that people want to buy figures and other items. They have entire store dedicated to that in NYC. Yet there is now way to order from there online or to get many of the other items. They rather hid them behind Club Nintendo and even then only in Japan. This is a case of them choosing it seems to stay small and limited.

The Wii U's failure (As an owner I still hope it can be recover to be success in the long run) is likely the best thing that could have happen to Nintendo in the long run. It's possibly THE thing that is finally forcing them to expand in various directions all at once. To be more then just a gaming company.
Father_Brain
Samus made me a Widower :(
(05-13-2014, 04:33 PM)
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Originally Posted by GCX

I don't think he's really clinging to "one game to save them all" idea. He's just trying to calm the investors while there's some really fundamental changes going on within Nintendo and they're about to change their focus to new businesses.

Iwata knows that Wii U isn't the thing that will start making them money.

I hope so, but past a certain point, any game developed for Wii U is a chunk of resources not being devoted to development for more viable hardware. I'm not sure Iwata understands that.
James93
Junior Member
(05-13-2014, 04:35 PM)
Alot of trying to cover their ass for the most part. They haven't been in a good place for a while now. The horrible wii U sales have made it clear where the company is at in the investor eyes

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