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Nintendo Results Meeting - Q2 presentation (completed)

by nintendaan
31 October 2013
GN Version 4.0
- Copies sold: 2.49m Animal Crossing, 1.91m Luigi's Mansion, 1.63m Tomodachi Collection, 1.37m Mario and Luigi, 1.19m Donkey Kong
- Nintendo said took inventory write down to account for price reduction
- Nintendo saying 3DS share has increased in Japan EU and USA, it's a growing market, you down in USA and Europe as last yr launched XL
- Pokemon X/Y said EU share grew from 18% to 38% and believes similar uptick in USA
- In the USA Nintendo 3DS has already passed last year's total, expects over 5m sold this year in USA with strong holiday season
- Nintendo saying 2DS awareness is still too low, but designed to appeal to lower priced users and survey indicates buyers were new users
- Wii Sports Club will be download only and free to play for 24hrs, 200 yen per day or 1000 yen for entire game
- Wii Fit U is also free for 1 month for users who have balance board, in Japan survey showed 500k still use board today
- Wii Fit U meter also has barometer so can measure if going uphill or down
- Because of the Pokemon launch, the company hadn't been doing much Wii U marketing but that has changed and sales have already improved
- Nintendo had 11.4bn yen renevue in digital sales with 50% for full game downloads
- Nintendo new bundles in Japan (family pack) and USA (Mario and Luigi) expected to boost sales.
- The new StreetPass games have been purchased to value of 1.1bn yen with Japan 35% of the total, expects Pokemon to help boost it in the future
- Digital or packaged, Nintendo believes price should be the same. Claims that you once buy digital, you will be more likely to buy digital again
- Nintendo understands the free to play market. Users feel packaged seems more expensive, trying new models like Wii Sports Club
- Nintendo argues that the Nintendo 3DS last year sold 5.5m and this year over 5m in Japan, record levels for handheld, at same time as smartphone expansion
- In handheld market, hardware plus software is a combined benefit and an experience different than smartphones
- Nintendo will use smartphones for promotion purposes of games, hardware takes 1.5yrs to design and entry level 2DS well planned ahead
- Nintendo saying weaker yen made the Nintendo 2DS possible, this holiday season games targeted more for family and next year for advanced players
- Nintendo saying next gen consoles not targeted at family audience this year, admitting competition is increasing
- Nintendo targeting Japan, USA, Europe and perhaps Australia for growth, but will explain Emerging Country strategy in January at 3Q result
- CEO commitment to 100bn goal. Using this year to be "make the best effort to achieve target" and not going to quit
- CEO focused on creating long term value for Nintendo, remembers Yamauchi 's advice "don't copy other entertainment companies"
- Nintendo plan to boost VC and library not fully utilised, can do more with digital platform, no plans to release own games on smart devices
- Nintendo not going to cut people to cut costs, not pessimistic on the future of the company
- On Yamauchi shareholding: said it's not 49 days since his passing and no concrete plans or discussion before 49 days with the family
- Plan to cooperate with family as much as possible and don't want burden on market. (At 49 days traditional ceremony conducted in Japan)