Author Topic: Iwata Speaks at Financial Briefing Q&A  (Read 12824 times)

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Offline WindyMan

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Iwata Speaks at Financial Briefing Q&A
« on: May 03, 2007, 05:46:44 AM »
Nintendo's president answers questions about the the American market, FPS Wii controls, the purchase of Monolith and more.
 http://www.nintendoworldreport.com/newsArt.cfm?artid=13397

 As part of Nintendo's financial report festivities, Satoru Iwata sat down with investors and engaged in a question and answer session.  The investors did the asking, and Mr. Iwata did the answering.  The topics covered a broad spectrum, and Iwata's answers were long-winded.  To save you the trouble of reading through the entire thing, we've highlighted some of the best parts.  If this doesn't satisfy you, you can read the entire Q&A here.    


Iwata on the purchase of Monolith from Namco:    


"In the case of Monolith Software, Mr. Sugiura, the president, and Nintendo have a long-term relationship. How Mr. Sugiura thinks is close to how Nintendo thinks. The software Mr. Sugiura would like to create is in line with what Nintendo would like to have for its platform. So, we thought that Nintendo should support this idea, and we decided to take action.  If certain conditions are met, we may do the same thing in the future (the merger and acquisition of another company). However, we will be very careful and selective, so that we will only partner with people with whom Nintendo can create a long-term working relationship."    


On expanding the market for DS in America:    


"We will be glad as more Pokémon are sold, but it is not enough when we want to expand the gaming population. When I received a report from the U.S. that they sold 1 million Pokémon Diamond & Pearl already, I asked them, "why did you sell only 10,000 Brain Age last week, when Europe sold through 30,000?" This is a typical example of how I communicate with our people in the U.S."    


On Metroid Prime 3 and Wii first-person shooter controls:    


"Those who recognize that mouse and keyboard combination is the best for FPS are now sharing with us their impression that Wii Remote and Nunchuk of Wii give them quite similar play feel and that they find some more potential with this new combination than with the existing controlling mechanism of other home console video game machines.  Of course, no actual consumers have ever tested it yet, but I think it important for us to create the market where the developers will say, 'Wii's controllers are perfectly suited for this genre of games.' I think it is one of the important elements for us in order to expand the gaming population."    


On why Nintendo forecast lower DS sales this year (22 million) compared to last year (23.6 million):    


"Just looking at the Japanese domestic market in the fiscal year ended March 2007, we sold more than 9 million DS hardware, and we have to say it was an extraordinary case. Nothing can sell this much unless some social phenomena factor is there. In fact, as I see it, no other video game hardware was able to sell 6 million [in Japan] in one year in the past. But DS has sold far beyond this number. If we should try to base our forecasts upon such an extraordinary year, we would end up making too aggressive a target. We had to rather think, now that we sold this many in Japan last year, hitting the ceiling must not be incredibly far ahead. Including this kind of thinking, we had come up to the estimate that others might find a bit conservative, and we think it was appropriate."    


On pursuing the recently retired Ken Kutaragi of Sony to join the ranks of Nintendo:    


"I don't think we will do that."    


On the current condition of the DS in the United States:    


"We are also noticing what the U.S. people often call 'early signs.' In many different places, something unprecedented is actually taking place in the U.S. People who would never talk about video games are actually discussing DS and Wii or actually touching them. These are the early symptoms for the market to change. So, we have the early signs. But the real market change has not taken place yet. When the change has occurred, the Japanese market doubled its size. I think that same thing can happen in the U.S. We have not gone that far yet but we are listening to the earth rumbling. We have come to that stage."    


And finally, Iwata on trying to make the Wii the number one console in America:    


"All I can say is, we would like to make efforts to make that happen. It is the analysts' job to predict whether or not we can make it, isn't it? (Laughs)  We want as many people around the world as possible to accept our commodities, and we would like to put smiles on as many people as possible."

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Offline ShyGuy

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RE: Iwata Speaks at Financial Briefing Q&A
« Reply #1 on: May 03, 2007, 06:26:20 AM »
I liked the part where he was badmouthing Second Life.

Offline 18 Days

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RE: Iwata Speaks at Financial Briefing Q&A
« Reply #2 on: May 03, 2007, 06:49:08 AM »
I liked the part where he informs NOA of the score.
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Offline Dirk Temporo

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RE: Iwata Speaks at Financial Briefing Q&A
« Reply #3 on: May 03, 2007, 06:50:22 AM »
Quote

On pursuing the recently retired Ken Kutaragi of Sony to join the ranks of Nintendo:

"I don't think we will do that."


I lol'd, just a little.
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Offline Bill Aurion

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RE: Iwata Speaks at Financial Briefing Q&A
« Reply #4 on: May 03, 2007, 07:00:05 AM »
Quote

If certain conditions are met, we may do the same thing in the future (the merger and acquisition of another company).

Oh ho, really...
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Offline IceCold

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RE: Iwata Speaks at Financial Briefing Q&A
« Reply #5 on: May 03, 2007, 08:09:04 AM »
Amusement Vision, please!
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Offline Khushrenada

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RE:Iwata Speaks at Financial Briefing Q&A
« Reply #6 on: May 03, 2007, 08:11:13 AM »
Good choice, Icecold.

Except without AV, SEGA is doomed! So make it happen, Nintendo.
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Offline Ceric

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RE: Iwata Speaks at Financial Briefing Q&A
« Reply #7 on: May 03, 2007, 08:16:15 AM »
Just started reading it but I enjoyed this and especially the bold parts:

Quote

Back to your question of when we will fulfill the hard-core gamers' titles lineup: It will be from around the end of this summer to the end of this year. We will then launch a new title of Super Mario (Super Mario Galaxy), Smash Brothers (Super Smash Bros. Brawl) and Metroid Prime (Metroid Prime 3: Corruption) although the last one is primarily for the overseas markets. These will be the key titles for the period ranging from the summer until the holiday sales season of this year, and I think we will be able to cater to the specific needs you mentioned.
Ideally, we should have had one such title already in the spring in order to create a better flow. At the same time, we are strongly holding the belief that we must raise the quality level if we need to introduce something new to our customers. We wanted to avoid a situation where these flagship titles were introduced when they were not perfectly tuned up. Please allow us that it is taking time.
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Offline Spak-Spang

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RE:Iwata Speaks at Financial Briefing Q&A
« Reply #8 on: May 03, 2007, 08:55:16 AM »
Quote

Originally posted by: Ceric
Just started reading it but I enjoyed this and especially the bold parts:

Quote

Back to your question of when we will fulfill the hard-core gamers' titles lineup: It will be from around the end of this summer to the end of this year. We will then launch a new title of Super Mario (Super Mario Galaxy), Smash Brothers (Super Smash Bros. Brawl) and Metroid Prime (Metroid Prime 3: Corruption) although the last one is primarily for the overseas markets. These will be the key titles for the period ranging from the summer until the holiday sales season of this year, and I think we will be able to cater to the specific needs you mentioned.
Ideally, we should have had one such title already in the spring in order to create a better flow. At the same time, we are strongly holding the belief that we must raise the quality level if we need to introduce something new to our customers. We wanted to avoid a situation where these flagship titles were introduced when they were not perfectly tuned up. Please allow us that it is taking time.



Ceric your bolding is brilliant.

Read that again everyone.  It seems to say that Nintendo is planning for an end of summer blitz of games.  Super Mario Galaxy, Super Smash Brothers Brawl, and Metroid Prime 3 for end of summer till Christmas release.

This tells me that Nintendo is planning a release schedule of:

Mario Galaxy late Summer
Brawl early-late fall
Metroid Prime 3 November 18th release date.  (Nintendo almost always releases a game this date.)

Yes, I know it is speculation, but I really believe that is going to be the release lineup.

That means we still have gaps for early Summer and Late Spring releases.

Could that be the time to see Mario Strikers and Battalion Wars Wii released?  Both online games?  

Nintendo MAKE IT SO!!!!

Also, I think Brawl would be brilliant game to release to combat Halo 3.  Brawl is a massively popular multiplayer game, just like Halo 3, but it still is a different genre so that it won't be compared to it...like Metroid Prime 3 would have been.


Offline Ceric

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RE: Iwata Speaks at Financial Briefing Q&A
« Reply #9 on: May 03, 2007, 09:10:50 AM »
I just finished reading it.  Its actually a pretty good read.  Also one of things I noticed was it came off that Iwata is actually disappointed with NoA.  He cited the Americas as the largest Videogame market in the world.    Though the sales are not indicating such when compared with other regions.  One of the things he mentioned is that in March NPD said that 500,000 DSLites where sold.  He turns around and goes but we sold 600,000 in Japan at a comparable time in the DS life.  Which is a good point when you compare the number of possible buyers.  Another example was the above Pokemon conversation.

Also the Escher Museum idea was cool.  As was the clarification of Nintendo Acquisition and Mergers policy. (Basically they could care less about the companies but want the people in the company and if they can't get those then its not worth it.)  Mum was the word on expansion and actual Wii production numbers. (DS 2.5 Million per month)  Also towards the end he states that beside some special very very long term relationships Nintendo only deals with Wholesalers so if the we allocation seems skewed its not Nintendos fault more then likely, like blaming MS when a 3rd party app busts Windows.
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Offline Smash_Brother

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RE:Iwata Speaks at Financial Briefing Q&A
« Reply #10 on: May 03, 2007, 09:14:34 AM »
Quote

Originally posted by: IceCold
Amusement Vision, please!


Damn straight.
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Offline decoyman

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RE: Iwata Speaks at Financial Briefing Q&A
« Reply #11 on: May 03, 2007, 09:26:11 AM »
Ceric, I'm not sure it's so much that he's disappointed in NoA, but he's definitely focused more on what could be than the current "small" successes...

Surely Iwata understands that there are vast differences in the markets, and NoA has a much steeper slope to climb than NCL.
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Offline Kairon

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RE:Iwata Speaks at Financial Briefing Q&A
« Reply #12 on: May 03, 2007, 09:30:46 AM »
One thing that caught my eye is that whenever the 300 million software sold number was bandied about... it was always used to refer to ONE YEAR.

Is Nintendo really ambitious in stating that their goal is to sell/ship 300 MILLION PIECES OF SOFTWARE IN A SINGLE YEAR?!?!?!

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Offline Ian Sane

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RE: Iwata Speaks at Financial Briefing Q&A
« Reply #13 on: May 03, 2007, 10:24:18 AM »
"why did you sell only 10,000 Brain Age last week, when Europe sold through 30,000?"

OUCH!!  Iwata's being a little mean there.  It's like when I'd hand my report card to my Dad and it was 90% and he would joke around and say "where's the other 10%?"  Only Iwata actually means it.

America so far has not embraced non-gaming nearly as much as Japan and I don't see that changing.  I think NCL should not put any blame on NOA and just acknowledge that things are different here.  When Nintendo was all "people are getting bored of gaming" at the same time videogame sales in North America were going up every year.  That's why so many people thought Iwata was off his rocker when he made those comments because it just plain didn't apply to North America.  Here non-games can attract non-gamers so it's still worth it for Nintendo to release such games here BUT they have to realize that here there's no gamer drift like in Japan.  So Pokemon is still going outsell Brain Age because there's still demand for games like Pokemon.  In Japan Brain Age sells with gamers who have lost interest in games.  That is not as common in North America so non-games are more targetted at people who have never showed much interest in games.

Offline GoldenPhoenix

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RE:Iwata Speaks at Financial Briefing Q&A
« Reply #14 on: May 03, 2007, 10:37:07 AM »
Yeah AMerica isn't embracing "non-games" I mean ANimal Crossing, Wii Play, Nintendogs, and Brain Age all sold like crap right? I think you need to face it Ian that Nintendo's blue ocean, non-game strategy IS working and is being accepted by the Americas(BTW you are taking Iwata's quote COMPLETELY out of context). Not to mention Wii sports is one of the most talked about games out there amongst people.  
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Offline Ceric

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RE: Iwata Speaks at Financial Briefing Q&A
« Reply #15 on: May 03, 2007, 11:08:54 AM »
Quote

Ceric, I'm not sure it's so much that he's disappointed in NoA, but he's definitely focused more on what could be than the current "small" successes...

Surely Iwata understands that there are vast differences in the markets, and NoA has a much steeper slope to climb than NCL.

Decoyman:  I think Iwata understands that but he's using those big numbers from Japan because he later notes that NoA isn't even doing as well in their/there/they're "focus areas", thats what I'm going to call it, as NoE.  Thats where the disappointment sets in.

Quote

One thing that caught my eye is that whenever the 300 million software sold number was bandied about... it was always used to refer to ONE YEAR.

Is Nintendo really ambitious in stating that their goal is to sell/ship 300 MILLION PIECES OF SOFTWARE IN A SINGLE YEAR?!?!?!


Kairon, and everyone else, remember that Iwata makes it a point to state that he means for all the platforms as a whole. (DS, Wii, GBA, First, Second, Third Party.)  Nintendo does not expect to do that alone.  Even if they released everygame that is currently being developed, 124 games if memory serves, tomorrow they still have to sell ~2,419,355 on average per game to obtain those sort of figures.  Nintendo would love that but the chances of that happening are right up their/there/they're with us getting hit by a meteroite(sp?) with no warning by the end of the year.   In the theoritical realms of probability but not very likely.  Add in everyone else and it becomes much more doable.  
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Offline trip1eX

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RE: Iwata Speaks at Financial Briefing Q&A
« Reply #16 on: May 03, 2007, 11:26:47 AM »
I think Brain Age and BBA could do better if more casual type gamers knew about 'em.  And had a chance to play them.  The other part is I don't think non-nerds are comfortable going into videogame sections of stores let alone a Gamestop.  They need another outlet in which to buy and try these games.

Nintendo should probably do like Apple does and open some of their own stores.  I guess you'd get alot of nerds there though so maybe that wouldn't work.  But I think they need to get the word out better to casual gamer types.  

Offline Ceric

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RE: Iwata Speaks at Financial Briefing Q&A
« Reply #17 on: May 03, 2007, 11:42:32 AM »
Nintendo needs a casual tour that goes to schools and business.
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Offline WuTangTurtle

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RE: Iwata Speaks at Financial Briefing Q&A
« Reply #18 on: May 03, 2007, 11:48:29 AM »
I don't think buying Brain Age or BBA is something that should effect your manliness or something, I'd say Animal Crossing, SpongeBob, or Pokemon might get you a weird look from the clerk though.

Offline Ian Sane

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RE: Iwata Speaks at Financial Briefing Q&A
« Reply #19 on: May 03, 2007, 12:02:10 PM »
"I think you need to face it Ian that Nintendo's blue ocean, non-game strategy IS working and is being accepted by the Americas"

What part of "as much as Japan" did you not understand?  I didn't say America is not embracing non-gaming just that isn't as much as Japan is which makes sense since they're different parts of the world with different cultures and different tastes.

Offline Kairon

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RE: Iwata Speaks at Financial Briefing Q&A
« Reply #20 on: May 03, 2007, 12:42:02 PM »
My personal opinion is that American's are less likely to jump onto the Brain Training / Big Brain Academy / Cooking Navi portion of Blue Ocean, and instead will display more affinity to the Elite Beat Agents / Wii Sports / Wii Music / DDR / Animal Crossing portion of Blue Ocean... IF NOA WOULD ADVERTISE APPROPRIATELY! ARGH! Elite Beat Agents DESERVES better!

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Offline GoldenPhoenix

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RE:Iwata Speaks at Financial Briefing Q&A
« Reply #21 on: May 03, 2007, 01:34:22 PM »
The casual gaming market is one of the fastest growing markets in America, and I think Nintendo is perfectly justified to continue to push into that market. Regardless of what people choose to believe, the Wii has been a huge success so far, and it is perhaps the strongest indication of how willing America is to embrace the "non-gaming" strategy. Not to mention that NDS has helped expand the market and is proof, once again, that the dreaded blue ocean strategy IS working, and people are going to have to live with it.
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Offline GoldenPhoenix

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RE:Iwata Speaks at Financial Briefing Q&A
« Reply #22 on: May 03, 2007, 01:36:12 PM »
Quote

Originally posted by: Kairon
My personal opinion is that American's are less likely to jump onto the Brain Training / Big Brain Academy / Cooking Navi portion of Blue Ocean, and instead will display more affinity to the Elite Beat Agents / Wii Sports / Wii Music / DDR / Animal Crossing portion of Blue Ocean... IF NOA WOULD ADVERTISE APPROPRIATELY! ARGH! Elite Beat Agents DESERVES better!

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Kairon didn't the Brain Age games sell quite well? Personally I think that America will likely jump to it because Suduku (along with other brain games) is becoming a bigger hit each and every day, so in turn the Brain Age type games may start appealing to more people as time goes on.
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Offline GoldenPhoenix

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RE:Iwata Speaks at Financial Briefing Q&A
« Reply #23 on: May 03, 2007, 01:38:24 PM »
Quote

Originally posted by: Ian Sane
"I think you need to face it Ian that Nintendo's blue ocean, non-game strategy IS working and is being accepted by the Americas"

What part of "as much as Japan" did you not understand?  I didn't say America is not embracing non-gaming just that isn't as much as Japan is which makes sense since they're different parts of the world with different cultures and different tastes.


You know, I have trouble taking anything you say seriously on this subject. You've been against the non-gamer strategy since Day 1, and have an obviously dislike and bias against it. It is like you constantly bashing the Wii when you have really no leg to stand on since you haven't even tried to play one or experience it. Casual gaming is growing rapidly in America, and I would not be surprised if it didn't come close to Japan level, maybe even surpass it. Even the Wii is bringing in wayward gamers who gave up on consoles because of the complexity of the controller, in addition to rapidly expanding the market. Expansion of the market is enough of a justification all by itself for Nintendo to KEEP their current strategy for both Japan and America.
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Offline Kairon

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RE:Iwata Speaks at Financial Briefing Q&A
« Reply #24 on: May 03, 2007, 01:56:54 PM »
Quote

Originally posted by: GoldenPhoenix
Quote

Originally posted by: Ian Sane
"I think you need to face it Ian that Nintendo's blue ocean, non-game strategy IS working and is being accepted by the Americas"

What part of "as much as Japan" did you not understand?  I didn't say America is not embracing non-gaming just that isn't as much as Japan is which makes sense since they're different parts of the world with different cultures and different tastes.


You know, I have trouble taking anything you say seriously on this subject. You've been against the non-gamer strategy since Day 1, and have an obviously dislike and bias against it. It is like you constantly bashing the Wii when you have really no leg to stand on since you haven't even tried to play one or experience it. Casual gaming is growing rapidly in America, and I would not be surprised if it didn't come close to Japan level, maybe even surpass it. Even the Wii is bringing in wayward gamers who gave up on consoles because of the complexity of the controller, in addition to rapidly expanding the market. Expansion of the market is enough of a justification all by itself for Nintendo to KEEP their current strategy for both Japan and America.


I think BOTH of you are overreaching a bit.

YES, the USA is not as far into the non-game trend as Japan or even Europe.

NO, Ian is not suggesting that Nintendo give up on non-games.

... in fact... that might've been me suggesting that Nintendo alter its expectations for non-games here... eheh...

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A glooming peace this morning with it brings;
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Go hence, to have more talk of these sad things;
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For never was a story of more woe
Than this of Sega and her Mashiro.