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Today, on July 5, 2016, Nintendo published the English transcript of the Q&A session at the 76th Annual General Meeting of Shareholders held on June 29. The Japanese transcript has been up for a few days so we know already the answers, but it's good with an official translation.

Transcript in full: https://www.nintendo.co.jp/ir/en/stock/meeting/160629qa/index.html

Some excerpts:

Q 1
I find it difficult to approve Proposal No. 3. All of the candidate directors are men, and considering that women make up half of the world, I doubt such a board could fully grasp what women want and manage to broaden the market. Further, I personally do not use a computer, a cell phone or a smartphone. I wonder how your plans take into consideration the diversity of users, including such people like myself.

A 1
Tatsumi Kimishima (President):

First, regarding the fact that there are no women among the candidate directors, let me state that we choose directors who we believe can best help steer our company regardless of gender, age, or nationality. In addition, we do not intend to introduce a mandatory retirement system for our board members. Come the end of this general meeting, there will be no women directors or executive officers, and the only non-Japanese executive officer will be Reginald Fils-Aimé (president of Nintendo of America). Be that as it may, our company has many female employees in active roles, and our overseas subsidiaries have many female staff members. Our management team is keen to absorb the opinions of those employees to develop products and run the company in ways that reflect both the female viewpoint and a global viewpoint.

We want all our consumers, including our many female consumers, to enjoy our products. From that perspective, it is extremely important going forward to gather a variety of views from many different people for our product development.

As I mentioned, there are no women among the candidate directors this time, but we intend to do our utmost to foster greater participation of women for the future growth of Nintendo.

Q 4
The former President Mr. Iwata passed away last year on July 11, and Mr. Kimishima was appointed president on September 16. Can you explain why two months were needed to choose the next president?
Next, the Nintendo website has the "Iwata Asks" section, which was a very good opportunity to learn about the difficulties experienced by those in game development. I want to ask you to revive this section.
Lastly, I think many people would like to play Nintendo's action games as smart device applications. But smart devices use touch panels, which may not be suited to action games. Does Nintendo have any plans to launch a physical controller and invest in new titles of quality action games?

A 4
Kimishima:

To the first question about the two months after the former President passed away, while he was still alive, he gave Mr. Takeda, Mr. Miyamoto, and myself clear instructions to ensure that operations would proceed smoothly. While running the business based on his instructions, we took two months to carefully consider what would be the best organization to put in place, how best to take on new projects, and who would be the right person to be in charge of what.

About the "Iwata Asks" section, I do not have a background in game development, so I would not be able to give very interesting questions. Going forward, we will create opportunities to provide information in a fitting format about the background to our game development and the interesting aspects of it.

Shigeru Miyamoto (Senior Managing Director, Creative Fellow):

The former President Mr. Iwata and I had talked about how the "Iwata Asks" section had fallen into a rut, and we will consider what format will best suit this type of content.

For the last question about smart device applications, Mr. Shinya Takahashi is leading this development and I will let him explain.

Shinya Takahashi (Director, General Manager of Entertainment Planning and Development Division):

Physical controllers for smart device applications are available in the market and it is possible that we may also develop something new by ourselves. On the other hand, I believe Nintendo's way of thinking is to look at whether action games are really not impossible (without a physical controller for smart device applications) to create and how we can make it happen to create such a game. I think we will make applications, and not just action games, in consideration of what best embodies "Nintendo-like" applications, including applications for everyone from children to seniors.

Q 11
What can you tell us about your NX production plans? I've heard that labor costs in China for assembly workers have risen considerably lately. And there was news at the end of May that the Taiwanese contract manufacturing company Hon Hai was restructuring by replacing 50,000 workers with robots. Game systems have a life cycle of around five years, and the products designed five years ago both by your company and by other companies do not look like they could be easily made by robots. NX will probably come out next year, so its five-year life cycle takes us to around 2020. Production will likely be largely automated by then. Assuming that Nintendo will continue to be a fabless company that outsources production, what can you say about production trends and how will Nintendo address issues like cost and ease of manufacture?

A 11
Hirokazu Shinshi (Director, General Manager of Manufacturing Division):

Labor costs in China have certainly risen steeply over the last ten years or so. You see some uptrend in labor costs in other ASEAN nations too, so it is not as if this is happening in only China. That said, the jump in China stands out.

There is some talk that the rising labor costs in China are leading to more automation. The word "automation" brings robots to mind, but we should see the trend for automation in China in the same context as Japan's past efforts to automate its manufacturing sector. You bring up the matter of Hon Hai, but that is not about the factories that make Nintendo products. So, although I can't really comment, Hon Hai is working hard to cut its costs, and one way is to progress with automation using robots. I see this as a cycle that puts workers to use in more productive ways, rather than something leading directly to layoffs. The circumstances in China support automation in factories to boost productivity and counter rising labor costs.

But regarding the manufacture of our products in this setting, let me just note that devices like ours, which are complicated and made in amounts that vary widely from month to month, do not lend themselves to the kind of automation that is easy to introduce for devices with simple structures, that are made in constant amounts. Are there more efficient ways of determining which processes to automate and how? Can automation deal better with changes? These are the kinds of questions we continue to address. We are in close communication with our partners who manufacture our products. We are now preparing to manufacture NX and hashing out details like the extent of automation. We hope to create the optimal production environment.

 

[georly]

Oh good, the official, full translations are here. Thank you so much. I anticipate many more news articles about this popping up today.

Thanks for sharing. Reading now.

We are now preparing to manufacture NX and hashing out details like the extent of automation. We hope to create the optimal production environment.

Wonder what they mean about 'now preparing.' Is it as simple as it means, that they're basically done w/ pre-production and are putting the orders in now (to put all the parts together?) - is 8-9 months enough or even standard for a console launch?

We are focused on the retention rate, which is how many users continue to play Miitomo.

Youch. Sorry, I don't think they're doing a great job with this. Almost everyone I know (including myself) quit miitomo about a week or two after it was out. A combination of the game being super shallow and the fact that there's not enough stuff to get w/ platinum coins means it's pointless to engage with anymore.

This year, even on the third day, people were running in as soon as the venue opened, and lined up in front of our booth to play our game.

Haha, it seems nintendo was really pleased with the people rushing in to play BotW.

 

[DownGrader]

Iwata Asks secrion of Q4 is weird. First of all, it's called "Iwata Asks" for a reason; secondly, haven't NCL launched "Topics" blog? NoE publishes quite a lot of dev interviews too.

Of course we intend to carry on with the QOL project, and that is what we are doing at present.

QOL is alive!

In an internal sales representative meeting, someone projected that we would sell close to 100 million Wii U systems worldwide. The thinking was that because Wii sold well, Wii U would follow suit. I said that, since the Wii had already sold so well, we need to clearly explain the attraction of the Wii U if we are to get beyond that and sell the new system, and that this would be no easy task.

That's an interesting quote by Kimishima. Nintendo did seem to be a bit delusional in their Wii U plans coming after Wii (100 million units, WTF), and Kimishima understood that making a successor to such popular device is way harder than one could imagine.

Youch. Sorry, I don't think they're doing a great job with this. Almost everyone I know (including myself) quit miitomo about a week or two after it was out. A combination of the game being super shallow and the fact that there's not enough stuff to get w/ platinum coins means it's pointless to engage with anymore.

I came back after 1.3.0 update. I liked the concept, but the execution was lacking, now the app's performance and UX has improved quite noticeably.

 

[Onaco]

Further, I personally do not use a computer, a cell phone or a smartphone.

Then why and how are you here?

 

[Alex_Mexico]

So they're preparing to manyfacture the NX. How about preparing to reveal the damn thing? We have people in GAF reading through translated shareholder meetings for clues. Dragging this out is not good for our health.

 

[DXB-KNIGHT]

Then why and how are you here?

Pictochat

 

[Jintor]

Then why and how are you here?

They bought shares

Also their question isn't as stupid as it seems; more blue ocean stuff

 

[georly]

Then why and how are you here?

He or she is probably an older investor who has staff that makes his or her appointments. Nintendo reached out to older consumers in the DS era w/ brain age and such, maybe wants to know if nintendo will attempt to re-engage with the non-tech-savvy portion of the world or not. Question seemed to go unanswered however.

 

[starpiercer]

Then why and how are you here?

Probably old money or just feels that phones are useless which is weird, with Nintendo being a video games company.

 

[darkness_s]

Iwata Asks secrion of Q4 is weird. First of all, it's called "Iwata Asks" for a reason;

I believe the japanese name for Iwata Asks is "the president asks" or something like that.

 

[Calm Mind]

September 16th

Q4. Note the date when Kimishima took over after Iwata's death.

Coincidence? I think not.

 

[DownGrader]

I believe the japanese name for Iwata Asks is "the president asks" or something like that.

Hmm, the answer makes more sense then.

 

[BY2K]

The question about the 2 months delay after Iwata's passing seems harsh as hell...

 

[duvjones]

Next, the Nintendo website has the "Iwata Asks" section, which was a very good opportunity to learn about the difficulties experienced by those in game development. I want to ask you to revive this section.

This question makes me sad. I don't think that there is anyone in Nintendo (or elsewhere) with the kind of experience that Iwata has in programming to attempt to revive these articles. He was deeply personal and prided himself on his experiences, he once said that it was something of a badge of honor to be a CEO with some coding experience.

I don't think that can ever be replaced.

 

[Atomski]

Further, I personally do not use a computer, a cell phone or a smartphone. I wonder how your plans take into consideration the diversity of users, including such people like myself.

the first oart of the first question made sense but this part.. wtf..

 

[10k]

The question about the 2 months delay after Iwata's passing seems harsh as hell...

Investors are ruthless.... And ignorant.

 

[Plinko]

Q4. Note the date when Kimishima took over after Iwata's death.

Coincidence? I think not.

I'm not following this at all.

 

[Tezzeractor]

I'm not following this at all.

That's Calm Mind's NX reveal prediction.

 

[KingSnake]

So much for Kimishima understanding what went wrong with Wii U:

Kimishima:

I would first like to clarify my purported comments on Wii U. I do not wish to make excuses, but at the time of the Wii U launch, I was responsible for our sales base in the United States, and I never made any pessimistic comments. In an internal sales representative meeting, someone projected that we would sell close to 100 million Wii U systems worldwide. The thinking was that because Wii sold well, Wii U would follow suit. I said that, since the Wii had already sold so well, we need to clearly explain the attraction of the Wii U if we are to get beyond that and sell the new system, and that this would be no easy task. I was responsible for selling the Wii U, and I knew what was good about it, so I talked with those in charge of sales about the importance of conveying the attractiveness of Wii U to consumers. I am guessing that some of this communication may have come across in a negative tone.

 

[Eradicate]

Thanks for the thread! Though, I don't use computers or have a phone. I wonder how your plans for this thread take into consideration the diversity of users, including such people like myself.

It is true that we are having a hard time with Wii U sales, due to its price and the added fact that tablets are distributed free of charge in the market. I do think Wii U continues to be attractive as a media device that changes life in the living room. A similar challenge continues with NX.

I think this is interesting. Likely reading into it, but the part going on about "a media device that changes life in the living room" into "a similar challenge continues with NX" seems pretty console-y to me! (As opposed to a handheld.)

First, please understand that the need to continue making unique products that are different from other companies' is firmly embedded in our management approach, and this will continue to be of utmost importance.

This is interesting enough too, but expected, in how they want to continue making unique products. Looks like that hasn't changed!

 

[spekkeh]

That's Calm Mind's NX reveal prediction.

Tokyo Game Show? But Nintendo's not even there...


...I should know better than to indulge in this.

 

[KingSnake]

That answer 9 from Miyamoto is very strange. Wii U is a media device for the living room that has no media player capabilities beyond streaming. There are showers out there that are more of a media device.

 

[jroc74]

That answer 9 from Miyamoto is very strange. Wii U is a media device for the living room that has no media player capabilities beyond streaming. There are showers out there that are more of a media device.

Havent you heard?? No one uses CD, DVD, Blu Ray anymore. Everything is in the clouds....come join us in the clouds...

 

[Eradicate]

Havent you heard?? No one uses CD, DVD, Blu Ray anymore. Everything is in the clouds....come join us in the clouds...

 

[Regiruler]

That answer 9 from Miyamoto is very strange. Wii U is a media device for the living room that has no media player capabilities beyond streaming. There are showers out there that are more of a media device.

It has netflix, hulu, prime, and crunchyroll so it's already sufficient for a reasonable portion of the population.

 

[DrWong]

It has netflix, hulu, prime, and crunchyroll so it's already sufficient for a reasonable portion of the population.

Yeah, who buy Youtube on CD/DVD/BR nowadays? ...

 

[zelas]

What free tablets undercut the wii u's success? Come on now Kimishima, there are better explanations.

 

[Gaiaknight]

That answer 9 from Miyamoto is very strange. Wii U is a media device for the living room that has no media player capabilities beyond streaming. There are showers out there that are more of a media device.

Streaming all most people need nowadays hell I haven't bought a DVD or Blu-ray in years thanks to digital and streaming.

 

[akidnamededdy]

That's an interesting quote by Kimishima. Nintendo did seem to be a bit delusional in their Wii U plans coming after Wii (100 million units, WTF)

Seems a bit like Sony in the PS2 - PS3 transition in that respect.

Still crazy to think about just how successful the Wii was and also how unsuccessful the Wii U has been.

 

[Pandy]

That answer 9 from Miyamoto is very strange. Wii U is a media device for the living room that has no media player capabilities beyond streaming. There are showers out there that are more of a media device.

Netflix, Youtube, and GAF pumped straight to my living room TV. What else do you need?

Genuinely writing this comment on my WiiU now.

 

[Schnozberry]

Netflix, Youtube, and GAF pumped straight to my living room TV. What else do you need?

Genuinely writing this comment on my WiiU now.

Don't forget Plex works fantastic in the browser as well. Hulu and Amazon apps aren't the greatest but they work.

 

[LambdaTeos]

Youch. Sorry, I don't think they're doing a great job with this. Almost everyone I know (including myself) quit miitomo about a week or two after it was out. A combination of the game being super shallow and the fact that there's not enough stuff to get w/ platinum coins means it's pointless to engage with anymore.
.

quite a lot of people I know still uses it, and since it was just released here in Mexico, a lot of people is in the hype train.

Keep in mind that the fact that my Nintendo and Miitomo have been released in other countries helps to get sales and promotions, we didn't have Club Nintendo, so this is a first for us, it's logical we are gonna use the app like hell to get discounts, (considering that a game that's 60 USD for you can be 75 USD for us... in digital and physical format)

Besides, last patch made it a great app, improved a lot of aspects.


(just noticed, i'm no longer Junior Member..yay...ok..back to topic)

 

[ShockingAlberto]

First, regarding the fact that there are no women among the candidate directors, let me state that we choose directors who we believe can best help steer our company regardless of gender, age, or nationality.

boy this was not a good first response

 

[El Topo]

Netflix, Youtube, and GAF pumped straight to my living room TV. What else do you need?

There are many more streaming services and video sites than that, plenty of which don't have an app for Wii U.

 

[PSqueak]

Then why and how are you here?

The question is pretty legit tho, basically she said "I don't use electronic devices, what are you doing to appeal to the untapped marked of people like me?"

 

[akileese]

boy this was not a good first response

I read it as them saying they felt they did not have female candidates that fit the ability or qualifications to be a director at this time. The wording was peculiar and not the least bit flattering though.

 

[Corleth the Fey]

We are simultaneously creating the NX version of this game, and are working hard to offer the same experience.

So what does this mean? They are working hard to offer the same experience on NX as on Wii U. Why would a console more powerful than a Wii U require hard work to get the same experience?

I'm still of the mind that NX will offer something much more akin to a smart mobile device experience, with a TV base station. Just my opinion of course.

 

[Regiruler]

The question is pretty legit tho, basically she said "I don't use electronic devices, what are you doing to appeal to the untapped marked of people like me?"

I think it's rather pointless. Even nintendo's most basic products won't appeal to people who are repelled by basic technology.

 

[ShockingAlberto]

I read it as them saying they felt they did not have female candidates that fit the ability or qualifications to be a director at this time. The wording was peculiar and not the least bit flattering though.

The whole answer is pretty bad and it seems like he wasn't expecting to get the question. It comes off incredibly rambling.

We hire only the best! All of our directors are Japanese men, except this one guy, he's white, probably. We're not going to force anyone to retire, though. We're always looking for good women, that's why we have women employees. We'll think about doing it later.

 

[Fluxdyne]

Iwata Asks secrion of Q4 is weird. First of all, it's called "Iwata Asks" for a reason; secondly, haven't NCL launched "Topics" blog? NoE publishes quite a lot of dev interviews too.

It's only called "Iwata Asks" in English. The Japanese is something like "The Boss Asks".

 

[Mediking]

Wait, what...? President K doesn't have a background in game development....? Ummm....

 

[ShockingAlberto]

Wait, what...? President K doesn't have a background in game development....? Ummm....

Only Nintendo president that ever has is Iwata.

 

[Mediking]

Only Nintendo president that ever has is Iwata.

Hearing that President K doesn't have any experience in game development is pretty...uhhh.... disheartening.....

 

[Tom Nook Sawyer]

What free tablets undercut the wii u's success? Come on now Kimishima, there are better explanations.

I think his point may be a bit grander than that. There was no one specific tablet that did it. I believe his point is that free (and cheap) tablets devalued the appeal of the Wii U. If everyone already has a larger screen they can hold in their hand, what's the appeal of the Wii U.

The Wii U was too little, too late.

 

[Holy Order Sol]

Hearing that President K doesn't have any experience in game development is pretty...uhhh.... disheartening.....

we knew this tho

 

[vinnygambini]

The whole answer is pretty bad and it seems like he wasn't expecting to get the question. It comes off incredibly rambling.

We hire only the best! All of our directors are Japanese men, except this one guy, he's white, probably. We're not going to force anyone to retire, though. We're always looking for good women, that's why we have women employees. We'll think about doing it later.

And we have women who take part of the company in executive roles..... overseas.

 

[ShockingAlberto]

Hearing that President K doesn't have any experience in game development is pretty...uhhh.... disheartening.....

What are your feelings on Andrew House or Don Mattrick, for different reasons

 

[mocolostrocolos]

Mr K. being so sensible about why WiiU failed in stead of delusional gives me hopes he can manage to adress NX correctly.

 

[Ambitious]

What are your feelings on Andrew House or Don Mattrick, for different reasons

Funny enough, Don Mattrick actually has game development experience. He co-founded a studio at the age of 17 (Distinctive Software) and worked on a bunch of games there.

 

[ShockingAlberto]

Funny enough, Don Mattrick actually has game development experience. He co-founded a studio at the age of 17 (Distinctive Software) and worked on a bunch of games there.

Right, I wanted to choose a head that actually did come from game development but is generally agreed upon to not be a great choice for their role.