Quite a few of you must be wondering why Nintendo, which has never deviated from its cautious stance in regard to the possibility of deploying its game business on smart devices, has now changed its policy.
Please note, however, that I was not dismissing the idea of making games for smart devices per se as I stated at the January 2014 Corporate Management Policy Briefing that a development team of Nintendo would create a smart device application, and please also note that I had not ruled out the possibility of making games when we make use of these devices.
On the other hand, I really had to thoroughly consider how we would be able to grow the business by maintaining and nurturing the value of Nintendo IP and what conditions would make that happen, because the value of content can easily be deflated in the digital world and, especially on smart devices, it is not easy to maintain content value since the lifespan tends to be very short as much content is released and then replaced so quickly. We are making these announcements today because we now have Nintendos answer to these questions.
Just looking at the fact that several applications that earn great profits are highly visible in the smart device game business, people in general appear to see it as an easy money market. The fact is, however, it is a highly competitive market and only a handful of content providers have been able to show enduring results. If Nintendo cannot make it to that handful of winners, it does not make sense for us to be engaged in the software business on smart devices.
Accordingly, we had been thinking that if we ever decided to do it, we would have to put ourselves in the best position to prosper. For many years, Nintendo has shown results as a company which produces products that satisfy consumers with their high quality at the time of the purchase. For the content on smart devices, on the other hand, to be appreciated by consumers, they must provide ever-evolving services in addition to being high-quality products.
