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Nintendo investor Q&A - Expanding Switch sales, creative content, advancing tech, supporting 3DS, bring back lost fans, and much more

Following Nintendo's investor briefing, the company held a Q&A with investors and press. While we wait for the official English translation, we have a summary of info from the Japanese version. This includes comments from both outgoing President Tatsumi Kimishima and incoming President Shuntaro Furukawa.

- Furukawa's priority is to accelerate the momentum of Switch and to expand related business
- there's also a goal of expanding the mobile business
- the core of Nintendo’s business is in developing creative content, and most investment needs to go into that
- technology is advancing at tremendous speed
- if Nintendo finds a possible partner whose tech is highly compatible and good for the customers, an investment could be made
- Kimishima's primary role was to bring the Switch to market and deliver it to the customers in the way that was envisioned
- his secondary role was to change the executive system in order to quickly execute projects
- he was also creating mechanics which would allow the new generation to do well
- with authority and governance delegated more, younger managers were able to run the company and achieved success
- with various projects are progressing well, Kimishima feels that it’s a good time for a change his position
- the goal is to become a more vibrant Nintendo by placing new managers in charge
- it’ll be important to sell the Switch to people who never played a Nintendo console before
- Nintendo also wants to bring back those who have been played in the past, but have since left
- there are plans for games that will interest those who have not been playing games recently
- Nintendo wants to engage in a company-wide effort to achieve that, and that includes overseas subsidiaries
- the goal of shipping twenty million units in this fiscal year isn't easyto achieve, but Kimishima thinks it can be done
- in order to keep selling the Switch for a long time, Nintendo needs to continually launch new experiences
- Nintendo accumulated experience with launching numerous consoles, and that includes mistakes they've made
- Nintendo will make use of that experience while moving forward
- Nintendo would like to keep selling the Switch for as long as possible while reacting flexibly to changes in the market
- Nintendo expects 3DS demand to continue for the current fiscal year, especially among parents
- this is thanks to the rich library and a price that is easy to afford
- in the future, this situation may change if the Switch can transition from “one per household” to “one per person”
- the Switch won’t have a price that many parents can afford paying for all of their children any time soon
- Nintendo will keep tracking what kind of play experience and price customers are hoping for
- the company plans to keep selling the 3DS as long as there is demand
- at the moment, Nintendo feels that it’s a well-diversified product from the Switch
- Switch Online service will be positioned as one of the mechanics to encourage a deeper gameplay experience
- Nintendo is still preparing to launch the service, and this will bring some costs in the first half of the fiscal year
- Kimishima expects the percentage of digital sales to steadily increase in the future
- since there are still many customers who request exclusively packaged games, not all sales will become digital
- the rate of digital sales also varies depending on which game is being sold, who is purchasing it, and the age target
- games of some western developers have already reached 50% of digital sales
- even if the digital ratio increases, if total software sales decreases, it won’t contribute to profit
- the most important element remains to create good games that many customers will buy

Tags: 3ds, eshop, switch

Comments

Top Rated Comment
ddark
Sun Apr 29 18 09:17am
Rating: 5

I really like Kimishima and I don’t know why. I wish he had decided to stay on as President a bit longer, but I also understand that he stepped in, steadied the ship, executed what he needed to execute, and is ready to slip back into a role that has less travel.

Good job Mr. Kimishima! You did Iwata and everyone at Nintendo proud. Congrats on the successful launch and first year of Switch!

Nintendo also wants to bring back those who have been played in the past, but have since left

Easy fix for this is to bring back VC. And I guess some of the IPs that are largely dormant and while not nearly as profitable, can atleast satisfy the fans.

Nintendo wants to engage in a company-wide effort to achieve that, and that includes overseas subsidiaries

If they are referring to buying companies, they don't need to buy overseas companies. All they need to do is buy Capcom and SEGA. SEGA may not be an easy buy for them but atleast Capcom will.

the Switch won’t have a price that many parents can afford paying for all of their children any time soon

So I don't understand this point. Are they saying that there won't be a permanent price drop for the Switch or are they saying that the cost is enough for parents to afford it? Either way, I have to get it.

the company plans to keep selling the 3DS as long as there is demand

When you consider the fact that

    1. 3DS is a profit for them. 2. There are a TON of games worth getting for that system. 3. Since Switch isn't backwards compatible with anything, Getting a 70$ 2DS alongside 3DS games that are discounted seems the legit way to play those games.

Then yes, the 3DS isn't going anywhere for a while.

the most important element remains to create good games that many customers will buy

Since when has Nintendo ever made games that people didn't want them?

ddark
Sun Apr 29 18 09:12am
Rating: 2

Easy fix for this is to bring back VC. And I guess some of the IPs that are largely dormant and while not nearly as profitable, can atleast satisfy the fans

They aren’t talking about retro game fans looking for the 1200th way to play Super Mario Bros 3. They are talking about the category of consumers they call “lapsed gamers,” and it usually takes a unique/fresh/buzzworthy product to draw those kind of consumers back into the fold. Sure they might stick around and buy some of the older games they used to play on VC.

Side note: I hope you get your Switch soon, man!

Totally: anyone who thinks there's a huge market of gamers who haven't bought any new game system in seventeen years because there's no new F-Zero or Startropics is just too intense of a Nintendo fan to imagine the wider world. Not really a problem, just amusing.

totodile
Sun Apr 29 18 05:05am
Rating: 1

"Since there are still many customers who SteelDiver requests exclusively packaged games, not all sales will become digital".

ddark
Sun Apr 29 18 09:17am
Rating: 5

I really like Kimishima and I don’t know why. I wish he had decided to stay on as President a bit longer, but I also understand that he stepped in, steadied the ship, executed what he needed to execute, and is ready to slip back into a role that has less travel.

Good job Mr. Kimishima! You did Iwata and everyone at Nintendo proud. Congrats on the successful launch and first year of Switch!

This is a lovely sentiment, and I would have given it seven thumbs up if I could have. Thank you for putting into (eloquent) words what so many of us are surely feeling.

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