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[Kouriozan]

Finished reading everything.
It was rather interesting but Iwata is still with the "one game can change everything!" idea.

 

[clav]

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

Saving face is what eastern culture does best.

 

[shinra-bansho]

I don't really know why I always read these things expecting any sort of concrete information rather than just mostly waffle.

 

[Kitoro]

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?

Rather than making specific software that is compatible with figurines, they're making figurines that are compatible with unspecific software.

I wouldn't mind future Nintendo games having special features added for connecting figurines to them. Maybe some sort of Pikachu cameo in a future Mario game if I connect my Pikacbu figurine?

 

[clav]

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.

Wii-U 2 years left unconfirmed?

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.

Smartphones? Tablets? 2 year transition?

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.

2 years.

 

[Rosur]

Rather than making specific software that is compatible with figurines, they're making figurines that are compatible with unspecific software.

I wouldn't mind future Nintendo games having special features added for connecting figurines to them. Maybe some sort of Pikachu cameo in a future Mario game if I connect my Pikacbu figurine?

yea that kinda of thing is what I'm kinda though more like in smash or Mario kart were you can buy the model and use it for both as an extra character so kinda cross game dlc.

 

[AcademicSaucer]

Wii-U 2 years left unconfirmed?



2 year transition?



2 years.

Yeah, Nintendo is trying to get away from the wii u quickly, he, if the the licensing thing and the QOL business goes well , and him saying that nintendo has only being a videogame company for a quarter of its life, they could even become like Konami .

 

[monome]

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.

He says Miyamoto's department is basically focused on the WiiU at the moment and there are multiple games coming some soon, some later.

I'd give the WiiU a good 3 years. QoL and NFP are basically here to fill the (money) gap while Nintendo keeps on churning quality 1st party titles.

Work on their consoles is obviously limited considering all their talks about NFP, QoL, Business. They probably have outlined basic features their new strategy/organization can handle and maybe settled on things like required price/features.

 

[StevieP]

Wii-U 2 years left unconfirmed?



Smartphones? Tablets? 2 year transition?



2 years.

No. They're making apps for their hardware-based games and they expect their third pillar to release and be profitable within the next 2 years. But then I should've read the account before bothering to respond.

 

[Trago]

Wii-U 2 years left unconfirmed?



Smartphones? Tablets? 2 year transition?



2 years.

Nintend-OS handheld confirmed.

 

[clav]

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?

Nintendo doesn't have 3.6 million units sitting in warehouses.

Just a cash flow problem of dealing with how many units to manufacture to keep up stock inventory vs. how much money the company has on hand while maintaining reasonable profit or minimizing losses.

Every business hires analysts (i.e. consultants) for this problem.

 

[Mengy]

Finished reading everything.
It was rather interesting but Iwata is still with the "one game can change everything!" idea.

It was a lot of vague talk but no specifics, just like we've been hearing from Nintendo for years now. I keep hoping to hear about action from Nintendo but it never materializes, hopefully they make some real changes soon.

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.

I don't get why people are excited about them branching out into other venues like the QoL stuff. Why is that exciting to us as gamers? I want Nintendo to succeed at making games again. I want them to be viable, to have a console that is competitive. If they can't be successful at making video games, something they have decades of experience in, what makes everyone think they can be successful at anything else? We all agree that Nintendo is out of touch with gamers today, that is their management's fault, so what makes everyone excited to have this same management venturing out into new waters?

I for one am very worried and concerned about Nintendo. They seem to be an aimless pirate ship right now, hopping from island to island trying to find their lost stash of treasure while their supplies are slowly dwindling away. And rather than raid other ships to make more gold like other pirates do they are instead learning to sew quilts to sell at craft shows?

Doesn't sound promising to me, I'm worried. And nothing in any statement they've made in the past two years has alleviated my concerns, in fact it's only made them stronger.

 

[Mpl90]

The Business Development Department's establishment is completely new info.

There's also a (very) little update on their console future, NN-based and not device-based, which is...

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.

...mmmmmh...

 

[jroc74]

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.

Odd indeed...if he look around at what others are doing....the PS4 was selling like mad before any one real system seller. It was selling mainly based on future expectations.

Surprised no on mentioned this:

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.

If thats the case....they would have no misgivings going 3rd party then, right? Or going into mobile games, right? Maybe this is why with all the years of their home consoles shrinking in sales....they never wavered, panicked.

And...as to that quote....see PS4 sales. No real system seller until Second Son. Yet it was selling like mad before SS came out. If what he says is true....there would be tons more Wii U's sold now waiting for the release of Mario Kart 8 and Smash. If what he says is true...Sony and MS wouldnt invest in making the multi media features and other aspects of their console better. I wish there was a way to tell if a movie was watched on a game console vs a stand alone player.

Sony updated the PS4 to allow one to download pre ordered game days in advance...so when its released...its ready to play immediately.

Consumers also purchase hardware with an expectation of things to come, and what lil extras they get with consoles now vs years ago. Times have changed Mr Iwata...the Wii should have told you that.

 

[sd28821]

The Business Development Department's establishment is completely new info.

There's also a (very) little update on their console future, NN-based and not device-based, which is...



...mmmmmh...

very interesting but its not good click bait and wlll be ignored

 

[Liha]

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.

I hope that will happen.

they could even become like Konami .

I hope not, Konami's brand management is disastrous.

 

[Sendou]

I hope that will happen.

Well I think it will. I really can't imagine a Nintendo console launch without their core fanbase behind it. It always starts from there.

 

[Starwolf_UK]

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.

I see now. The "hardware production costs being higher than our trade price was taken into account" bit was throwing me off. I read it as "has been resolved". I guess sometimes we read what we want to read.

 

[User Tron]

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.

It could also mean that the production costs for the new units will lower in future. Several reasons are possible for this like end of a contract, better yield, die shrink, som to soc transition ....

 

[GuitarAtomik]

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...

When you think about it, it's pretty crazy how little Nintendo seems to leverage their IP. Like why isn't there a CG Super Mario show or movie out there (Wreck-It-Ralph was a good start)? Or even a Zelda one? Why aren't there more Nintendo toys? Why isn't there a Nintendo section at Disney or Universal? The only market I se them consistently leveraging is apparel which is good. But other than that they seem to be leaving a lot of money on the table and this sounds like they're realizing it.

 

[Fourth Storm]

Finished reading everything.
It was rather interesting but Iwata is still with the "one game can change everything!" idea.

I don't think he's banking on it. The investor just needed to keep hope alive and Iwata mentioned how Wii U might achieve respectable figures. He's right too. But the take away should be his projections of 3.6 million units with MK8 and SSB shipping this year.

Despite his (deserved) criticism on these boards by myself and others, I think Iwata came off as pretty thoughtful in this Q&A, as he usually does.

 

[BumblebeeCody]

Pretty good read. If anything it seems like Nintendo are taking the Wii Us failure seriously now. Kinda surprised there's no mention of third party talk though.

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?

Yeah I would think that's in relation to the new NFC figurines they announced for the Wii U gamepad.

When you think about it, it's pretty crazy how little Nintendo seems to leverage their IP. Like why isn't there a CG Super Mario show or movie out there (Wreck-It-Ralph was a good start)? Or even a Zelda one? Why aren't there more Nintendo toys? Why isn't there a Nintendo section at Disney or Universal? The only market I se them consistently leveraging is apparel which is good. But other than that they seem to be leaving a lot of money on the table and this sounds like they're realizing it.

I guess you could say why aren't there 'even more' toys because Nintendo honestly do have a lot out that at the moment. Check Toys 'R' Us. Heck, in the UK we have a Super Mario deal with McDonalds which has my friends and I getting some of the toys there.

 

[Mael]

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.

Good they're not hanging us 3DS/WiiU owners out to dry that means.
hope it's more than words this time, while 3DS proved its value (to me) between last year and the year before WiiU still need more.
If they value our relationship as customers to them and continue to provide appealing software there's no reason to not buy them.

 

[RiggyRob]

I would like to know when Nintendo will launch its next-generation video game systems.

Ice fucking cold.

The fact they've been developing their NFC figurine system since last year is good, but the quote that they expect 'almost' no loss on hardware compared to 'no longer' making a loss on hardware is a bit disappointing.

Also, a new business department that reports directly to Iwata? That does seem like he's consolidating his position in anticipation of the approval meeting under the cover of 'they'll inform me of what the Western markets want'.

 

[nikatapi]

I don't think he's banking on it. The investor just needed to keep hope alive and Iwata mentioned how Wii U might achieve respectable figures. He's right too. But the take away should be his projections of 3.6 million units with MK8 and SSB shipping this year.

Despite his (deserved) criticism on these boards by myself and others, I think Iwata came off as pretty thoughtful in this Q&A, as he usually does.

Yeah that's true, it seems that they don't have any delusions about WiiU at this point, so they are conservative (at last) with their projections, and reasonable saying that they need to satisfy their current base, before moving on to their next platforms.

 

[Snakeyes]

Also, the idea I mentioned about redefining the definition of video game platforms will also require approximately two years.

...we would like to work hard to make sure that we give sufficient momentum to the system so that we can expect good results in and after the next fiscal year, too. However, as for this fiscal year, as I explained before, the figures you see have been determined by rather conservative estimates.

I think that the specific mentions of the Wii U's results in FY14-15 and 15-16, along with a reference to the following year implies its successor(s) won't be released until 2016 at the earliest.

 

[GuitarAtomik]

I guess you could say why aren't there 'even more' toys because Nintendo honestly do have a lot out that at the moment. Check Toys 'R' Us. Heck, in the UK we have a Super Mario deal with McDonalds which has my friends and I getting some of the toys there.

Yeah, they probably do have a bunch in TRU and we did get a happy meal toy set here as well. I feel like it's a brand that should be more saturated though. For example, Wal-Mart and Target here have a relatively stagnant group of toys that are always there. Marvel, wrestling, Power Rangers, whatever recent superhero movie, Transformers, Star Wars, etc. Those groups probably haven't changed in the past 10 years, only the specifics of what's in them (ie more Thor toys while the new Thor movie is released). I don't see why Nintendo couldn't be one of those groups. They are one of the few brands that I think could manage that. But my bigger point is it should be way beyond toys.

 

[Caramello]

Also, a new business department that reports directly to Iwata? That does seem like he's consolidating his position in anticipation of the approval meeting under the cover of 'they'll inform me of what the Western markets want'.

To me it seems like Iwata has realised that Nintendo need to change their business model and expand the businesses they are in and think the best way to plan for this is to hire experts in different fields to consult with.

In fact here is the quote:

"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."

This isn't Iwata trying to consolidate his position, it's him doing his job.

 

[Ansatz]

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.

It's nice to hear that there are Wii U titles in early development, hopefully these are teams that have already released a title and are working on a second wave of software for the system.

 

[AdanVC]

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.

Ohhhhh this sounds pretty damn exciting!

---

I'm just glad to know that Wii U would be supported by Nintendo until the end of it's normal lifespan. They really appreciate their customers so there's no way they would move on to the next system and leave Wii U sink just like that. Iwata sound pretty confident when he talked about their next gen systems, it's exciting to imagine what could it be.

 

[Kucan]

So I guess their development of a figurine business had something to do with these appearing on the Nintendo UK store then?

 

[Baron von Loathsome]

So I guess their development of a figurine business had something to do with these appearing on the Nintendo UK store then?

Nah, those figurines are strictly decorative.

 

[Coffee Dog]

Iwata remaining so steadfast that quality software will sell the console is thankful from an enthusiast standpoint, though no doubt frustrating for investors. I dread the day when nintendo's internal development teams move their focus from making great games to making good enough games.

 

[Shikamaru Ninja]

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.

Basically June is the official restructure. It doesn't seem like they are hiring or absorbing any company just yet to fill the 1500+ seats at the newly constructed Kyoto Development Center.

Integrated Research & Development Division (Hardware)
Entertainment Analysis & Development Division (Wii Sports, Animal Crossing, New Super Mario Bros., The Legend of Zelda)
Software Planning & Development Division (Warioware, Rhythm Heaven, Tomodachi Life, Brain Age, Rusty's Real Deal Baseball)
System Development Division (OS, Miiverse, Mii stuff, eShop, Apps)

Will be all working in one building now. Which makes me wonder what happens to the older R&D offices.

 

[DXB-KNIGHT]

Which makes me wonder what happens to the older R&D offices.

Dedicated QOL development house?

 

[AcademicSaucer]

I hope that will happen.



I hope not, Konami's brand management is disastrous.

i meant that in the sense that Konami doesnt depend on their games division anymore.

 

[Cheerilee]

Nintendo doesn't have 3.6 million units sitting in warehouses.

Just a cash flow problem of dealing with how many units to manufacture to keep up stock inventory vs. how much money the company has on hand while maintaining reasonable profit or minimizing losses.

Every business hires analysts (i.e. consultants) for this problem.

Nintendo missed their sales targets by 6+ million units last year, and they even reconfirmed their expectations at the end of October. How long do you think it takes to ramp up/down production?

It's not just cash flow, Nintendo had to be sitting on millions of unsold units, as well as millions worth of incomplete units. The minority of units that are "profitable to make" in this new prediction should rather be considered "profitable to finish assembling".

I'm surprised that Nintendo doesn't have 6+ million unsold units, because if they used November as an indicator (they didn't use April-October), they would've had to cancel ~3 million units for December, in December.

 

[Entryhazard]

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.

 

[Interceptor]

Most interesting news is the establishment of the BDD.
Iwata just installed a whole thinktank with the single purpose of finding new ways to make money. Entirely new approaches, new opportunities for exsisting IPs,
New partnerships etc. A new department to kickstart creativity. Good news.

 

[Colby]

I think it's interesting that they already have a clear idea what their next-gen systems will look like. It's also interesting that Iwata isn't talking about games as much as I'd expect. He's talking about things like figurines, QoL, ways of using Nintendo IP's outside of gaming...I think most of us have only been looking at Nintendo as a struggling gaming corporation, but maybe moving into other venues of entertainment to bolster their portfolio is the way to go.

 

[Schnozberry]

I think it's interesting that they already have a clear idea what their next-gen systems will look like. It's also interesting that Iwata isn't talking about games as much as I'd expect. He's talking about things like figurines, QoL, ways of using Nintendo IP's outside of gaming...I think most of us have only been looking at Nintendo as a struggling gaming corporation, but maybe moving into other venues of entertainment to bolster their portfolio is the way to go.

If their next hardware isn't a Wii U Pro Controller attached to a Tardis, people on GAF will be disappointed.

 

[vinnygambini]

Iwata:

In addition to these changes to the R&D divisions, in March we established a new department called the “Business Development Department.” 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

The quote above is what excites me most about Nintendo's future moving forward. There is a change of tone. It is no longer: please understand, everything is alright and wait for better results next-year. Nintendo is now actively seeking new business developments and seeks to strengthen their revenue stream and create new ones.

 

[Tom_Cody]

I'm just now getting around to reading through this Q&A. Two things struck me to start with.

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.

1) In the first bolded part, he directly states that the primary focus of this venture is on the sales of the figures themselves and not the software experiences that will be connected to them. This is kind of an extremely important distinction. Disney Infinity's justifies the price of their figurines with the content linked to them. Barring that, there is no way they could justify $10+ for those tiny things.

To me this indicates that, at least to start with, these figures will be more like the Kid Icarus AR Cards than physical DLC. They will try to sell the figures on their own merit and not simply link them to gated content within their games to blackmail gamers.

2) In the second bolded part, he specifically states that these figure will be their own venture and they won't merely be licensed. This is a big deal. This indicates to me that they are going to control the manufacturing of the figures themselves, just as they do with their gaming hardware. This greatly increases my expectations for the quality of the figures. This also represents a major shift for the company as this will likely entail greatly expanding their physical toy division or possibly the creation of an entirely new division.

 

[Tom_Cody]

Slowly making my way through (these things are dense). The final answer on the first page has some interesting details regarding the timing of Nintendo's future ventures:

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.

QOL: To be presented to the public this fiscal year (between now and May 2015), with products released sometime the following fiscal year (May 2015 - May 2016), and an actual positive return on their investment the following year (May 2016 - May 2017).
I think we can infer from this that they are expecting incur large R&D and marketing costs related to the launch of QOL, given that they expect to require a year before they can return profits from the venture.

Smart Devices: In this fiscal year and next fiscal year (May 2014 - May 2016) they will release information, release products (or whatever), and be in a position to report back with results. This indicates that the are going to launch their mobile initiative some time in the next 12 months (not really new info since we know about Mario Kart TV) but, more interestingly, it indicates that they are expecting the imitative to impact their profits in this time frame. This means to me that they are going to release software at a cost --> they are going to be selling games on mobile devices in the next two years. This is obviously an extrapolation, but I think that this is what he is indicating.

I'm not going to bother with the "redefining the definition of video game platforms" part since there is a whole thread about the subject.