Details from Nintendo's 77th Annual General Meeting of Shareholders - Nintendo Everything

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Details from Nintendo’s 77th Annual General Meeting of Shareholders

Posted on June 28, 2017 by (@NE_Brian) in 3DS, General Nintendo, News, Switch

Update: Bumped to the top. All done. Some interesting responses from Tatsumi Kimishima, Shigeru Miyamoto, and others. We’ve rounded everything up below.


Original: Nintendo’s 77th Annual General Meeting of Shareholders is currently underway. We’ll be reporting on any news from the event as it happens below, courtesy of NStyles and cvxfreak.

Introduction

– Zelda: Breath of the Wild sales at 2.76 million units on Switch
– Zelda also sold 1.08 million copies on Wii U
– Total sales for Zelda at 3.84 million
– Switch sales at 2.74 million units during the most recent fiscal year
– Mario Maker and Kirby were well-received on 3DS
– Pokemon GO has helped sales of past Pokemon games; hardware sales up outside Japan
– On mobile, Mario Run and Fire Emblem Heroes well received
– NES/Famicom Mini also did well
– amiibo sales dropped due to lack of new games
– Assets increased by 172 billion yen
– Debt has increased by 82 billion yen, secondary assets up by 90 billion yen
– Nintendo focused on increased the populace’s access to Nintendo IP
– Working on growing game hardware & further establishing smart device biz
– Outside of games, USJ Super Nintendo World and other efforts are being made to increase appeal to past and future Nintendo fans
– 3DS sales surpassed 66 million
– 3DS software sales are on firm ground
– New 2DS XL and new games like Pokemon UltraSM/3rd party titles on the way
– Nintendo will work to continue the smart device games with new apps; Miitomo, Mario Run, FE Heroes released thus far with different concepts
– Nintendo Classic Mini Super Famicom out in Japan on 10/5, elsewhere in September; designs match what each region got originally
– Nintendo values creativity/originality and will release products that surprise consumers
– Nintendo Dividends: 430 yen/share
– Some talk about election/re-election of board members; Genyo Takeda is not seeking re-election

Q&A

Q1: I feel Japan PM Abe appearing at Rio Olympics closing ceremony with Mario costume affects Mario’s image negatively. Why did he appear?

A1 via Kimishima: It wasn’t just Mario; the aim was to show Japan’s cultural appeal to world through its companies’ characters therefore we accepted request. It wasn’t Nintendo alone. This has several meanings; received positive remarks from around world.

Q2: Game industry has 3 segments: mobile/consoles/PC. PC expanding greatly, programmers being birthed overseas. Does Nintendo plan to make PC software/hardware?

Kimishima: We’re aware there are many PC users. Our unified soft/hardware approach is good. However, we also support smartphones. Thanks to smartphones, Nintendo IPs are recognized, leading to returns on console front. Please see videos of our E3 announcements.

Shinya Takahashi: We were at E3 2 weeks ago with Mario Odyssey. This year public had access for the first time; 50K industry; 15K public. People lined up at Nintendo booth since early morning. Hard to see floor. Last day usually less busy but not this year. People on final day waited for Miyamoto. He also made a surprise appearance at the Ubisoft conference.

Miyamoto: I participated in Rabbids PR/special presentation. Tons of attention towards Nintendo; seems PC didn’t have as much this year.

Q3: There were many NES/SNES games but relatively few for Wii U, which had a short lifespan. Is Switch doing well? I read about Zelda’s 300-person debug team, but I think that’s a very good thing that should continue.

Kimishima: Game devs flock to healthy hardware. Indies are booming. We plan to sell 10M Switches this FY; 13M by fiscal year end. Sorry to users who couldn’t buy Switch. If 10M sold, more devs will jump aboard. Will also make indie-friendly environment.

Q4: Nintendo stock is rising. 4 million yen needed for 100 shares. Can you split shares so 100 can cost 1 million yen?

Stock splitting is valid measure, but some stockholders do not view that favorably. We’ll look into it.

Q5: Switch is emphasized as home console co-existing w/ 3DS. But new Pokemon was announced for Switch and I feel the environment has changed. Where do you see Switch/3DS co-existing going? What are your thoughts on the Switch and successor for 3DS co-existing?

Kimishima: Switch can be enjoyed in different ways. No details on Pokemon Switch yet, so please wait for details on what kind of game it is. 3DS will pass 70M this fiscal year and we want to continue providing software for it.

Takahashi: Switch is a unique home console thanks to the Joy-Con. 3DS is already popular, so we will release more games for them.

Q6: (stockholder question about what kind of games Nintendo should make)

A6: iPhone is 10 years old now; there are limits to enjoying games on touch panels. But also no new games recently like Wii Sports/Fit.

Kimishima: 1-2 Switch can be enjoyed without looking at a screen; you look at other player instead. We need to show and surprise users with our software so we can’t discuss what games we should make here.

Miyamoto: Game hardware with adequate features is enough. We released Wii Fit & nintendogs before; I haven’t retired and am overseeing Takahashi.

Takahashi: There are other projects in the works; they’re not necessarily like 1-2 Switch. Can’t announce now but want to show them soon.

Q7: Regarding product video, are there any plans to bring back past content like Kirby anime on BD, or old games on DD for console/mobile?

Kimishima: We’ll look into investing toward film. We want to increase opportunities for Nintendo IP and guide consumers with hardware = software synergy. Regarding Kirby, we’ll take your valuable opinion into consideration.

Miyamoto: We hold the Kirby IP and it’s growing in Europe. It’s selling in Spain; watched in places without game hardware. We want to make anime for Pikmin, Star Fox, Yoshi, etc. and distribute it freely, or integrate into games.

Q8: Looking forward to Nintendo World at USJ. Are there any similar offers from overseas parks?

Kimishima: We already reached understanding with Universal Studios and a US attraction is underway. Miyamoto is in charge of this.

Miyamoto: Construction started on former parking lot; US version progressing too. Olympics coming to JP, so we want to open it here first. I also visit Florida every other month to see the US version.

Q9: Where is the GBA Virtual Console?

Yamato: Looking at ways to develop VC. Classic Mini is one form of VC. We can also sell physical. Looking to make it as big as we can.

Q10: Any plans to make more stores like Nintendo World NY?

Kimishima: We do game demos at Nintendo World NY store; it is a form of marketing. Will look into new stores if location is ideal. We also have Nintendo booth at Kansai Airport, after customs. Enjoyed by many tourists. Want more opportunities like this.

Q11: (translator) Looking at balance sheet, we have 1 trillion yen in cash. How do you utilize that?

Kimishima: There have been technical innovations lately that we need to invest into. We are developing future hardware and software, our IP, mobile, video content, etc. We need to hoard for these investments. And our business experiences high and low cycles and need to be prepared. We give back to shareholders with dividends; M&As are also a possibility.

Q12: Any chances shareholders can get advance tickets or fast passes at Super Nintendo World?

Kimishima: We give to our shareholders through dividends. Shareholders (indiv/corp) want rewards in different ways. Will look into it.

Q13: Monetization differs depending on the game. What methods are you progressing forward with?

Kimishima: We have 3 games (Miitomo/FE/Mario) with different methods. Looking into what works. Mario had 150 million downloads but under 10% monetize. This isn’t bad. Mario downloaded in 200+ countries, some where it’s not officially available. Fire Emblem download count is 1/10th of Mario but has more revenue. All depends on IP; each has different needs.

Q14: Mario will be at Tokyo Olympics. Nintendo characters are part of JP culture. It’s too bad Classic NES was discontinued. There are third party games whose download sales were ended. Will Nintendo stop selling certain games digitally?

Yamato: I can’t comment on specific cases without info material, but certain game licenses lapsed, old hardware like Wii went offline, etc.

Tanaka: Game makers decide for themselves when to stop selling games. Some taken down due to lack of revenue. Please ask each company.

Q15: Nintendo holds shareholder MTG on day other companies do. Makes it hard to attend others. Can you change dates?

Kimishima: Revision in law makes this possible; we’ll look into it for next year and beyond. We want shareholders to give enough time between MTG invite and date; sent invites on 6/7 for one day before the end of month.

More:

Leave a Reply

  • Luigi Kirby

    – NES/Famicom Mini also did well
    …I hope they would focus on the customer rage at this. *facepalm*

    • Exposer

      The public is furios because it sold well?

      • Man

        They just coudn’t get theirs due to short supply

    • Aline Piroutek

      “NES/Famicom Mini also did well”
      You don’t say.

  • GoldenTriforce

    “I feel Japan PM Abe appearing at Rio Olympics closing ceremony w/ Mario costume affects Mario’s image negatively. Why did he appear?” Wow what a great use of your question, not as good as that one guy who asked Miyamoto’s team to go on an adventure to the Amazon and the Sahara though.

    • GoldenTriforce

      Half of these questions were pointless. There was some actually interesting stuff last year.

  • Guest Person

    Wait so the Switch only sold 300k in like three months?

    • Luigi Kirby

      Well, there was a huge supply issue in Japan ( and i heard the States too?).

      • Guest Person

        Yeah but this seems bad. Like, REALLY bad.

        • DeltaPeng

          The supply could be improved, but they put out and sold a fair number more units than they were anticipating.

          In the beginning, for the very first month (since Switch launched in March, which is also the end of the fiscal year), they planned to sell like 2 Million during that time, but ended up selling 2.76M instead if I’m getting my numbers right. That’s 38% more than estimated, some speculate that that 0.76M was expected to sell in the months beyond that first month, but since the supply was bought up Nintendo needed to re-analyze the situation and ramp up production.

          So…selling a fair amount more than expected and selling most everything you can produce (such that it’s rare to see Switch units just sitting in the stores), is a pretty good sign. The main problem is supply at the moment, but some of this is out of nintendo’s hands, like the article mentioning that (nand?) memory was hard to obtain, and I presume most factories work on a schedule, and you can’t just change your contract to produce a lot more than the original plan (without infringing on other people’s contracts/time).

          At least in Japan, the sales numbers seem like they are pretty good per Switch units. Launch always sells more units than standard months. But the articles that are posted here with those sales numbers have been showing Switch selling better than other hardware so far.

          Is my take and understanding of things at this time.

    • GoldenTriforce

      This is last fiscal year, ending March. This fiscal year’s first quarter info comes next month.

      • Guest Person

        OHHHH, okay thanks! I though that it was July, but this really makes me feel safer. Thanks man!!

        • GoldenTriforce

          Oh yeah no, this is just the shareholder’s meeting.

    • Segata Sanshiro

      No it says last fiscal year. Fiscal year ended March 31st. Those are the sales up to that date.

  • Exy

  • GoldenTriforce

    300 Person debug team lol.

    • awng781

      Each person debugs 3 Korok Seed locations and 1+1/3rd of a Shrine lol

      • GoldenTriforce

        “Now that we’re done employing 5 people to make this Zelda indie game thing lets get 300 people to debug their dysfunctional garbage.”

  • Aline Piroutek

    I feel like Q1 and Q2 are stupid.
    Obviously Mario is one of the most famous icons of the japanese industry and hardware sales make more profit to Nintendo than just doing software.
    At least they didn’t asked why Nintendo doens’t make games to PS4.

    • Luigi Kirby

      Also, I don’t get it why Abe Mario makes too much negative image for Mario.
      China and Korea don’t like Abe that much due to WWII history reasons, and some in Japan are also against him for various reasons(forgot what exactly). But is Shinzo Abe really considered that bad in the West?

      • Blanco8x8

        As an American, I see Shinzo Abe as the Prime Minister of Japan. I don’t really care or want to know his political views. We have our own clown of a President to worry about.

        • Shonenfan

          Donald trump in a mickey mouse costume O.o imagine that

  • awng781

    “Switch can be enjoyed in different ways. No details on Pokemon Switch yet, so please wait for details on what kind of game it is.”

    Interesting… Sounds like Pokemon on Switch might have some local multiplayer features, like many other games on the Switch. That would make this Pokemon game stand out against other Pikemon games on previous Nintendo handhelds.

    “Where is the GBA Virtual Console?”

    I like this shareholder. No BS, direct, and straight to the point.

  • awng781

    “Any chances I can get advance tickets or fast passes at Super Nintendo World?”

    “No”

    “But mommy…please?? I bought 20 shares of Nintendo…”

    • Exy

      It’s insanely bad practice to hand out incentives for owning stock like that, but if it got me priority tickets to the Metroid attractions, I’d buy 20 shares yesterday.

  • Puffdaddy

    Geez who are asking the questions, kids? Those were some terrible questions to ask during a Shareholder meeting.

    • Tlozbj

      Some questions in past years were even worse :v One even asked about the possibility of things like Nintendo bread

  • DeltaPeng

    My quick initial thoughts on points mentioned:

    > Nintendo values creativity/originality and will release products that surprise consumers
    – Yes please!

    > Nintendo Dividends: 430 yen/share
    – Sweet! Didn’t know dividends were involved. That seems like a pretty generous % too…

    >Q4: Nintendo stock is rising. 4 million yen needed for 100 shares. Can you split shares so 100 can cost 1 million yen?
    -This looks like a typo, 4 million yen should be equal to 1,000 shares at least when doing a USD conversion (roughly, though stock price went up since then). Though…I’m assuming they’re talking about NTDOY?

    >We want to make anime for Pikmin, Star Fox, Yoshi, etc. and distribute it freely, or integrate into games.
    -This could be cool and fun. Be interested if something comes out of this.

    >Q8: Looking forward to Nintendo World at USJ. Are there any similar offers from overseas parks?

    Kimishima: We already reached understanding with Universal Studios and a US attraction is underway. …
    -Cool! Was hoping this would make it to NA sometime.

    >Q11: (translator) Looking at balance sheet, we have 1 trillion yen in cash. How do you utilize that?
    – This looks to be around… 8.9 billion in USD. Yeah… that’s a fair chunk of change! :O Should hopefully provide stability throughout their endeavors

    • Luke WalkingMoonTree

      1M ¥ is a little less than 10k $ most of the time, for instance most 3DS games arew 4.2k ¥ and most home console games arew 6.4k ¥ , for most products if you divide by 100 the yen price you get a very close price, they key factor is them being cheap

      • DeltaPeng

        Per Yahoo’s yen to dollar calculator, 1M Yen right now is $8,890 USD.

        430 yen is about $3.82, their stock right now per NTDOY is $41.87, so that’s 9.12%.

        When it comes to stock, this is actually very, very good and generous for dividends. You can’t compare dividends to the cost of items, do you expect Nintendo to give you something close to $37 dollars (the rough translated price of the 42k Yen in USD, for a 3DS game) for every $41.87 invested in them? There’s no way a business could survive like that. To grow, a business needs to make profit, and re-invest that into the business, that can’t happen if they give away all their profits through dividends.

        Dividends are like free money given to investors (a share of the profit made). A company does not have to participate in this. For comparison, according to finance.yahoo Appl’s stock is giving 1.75% dividend, and I don’t think Amazon and Google (AMZN and GOOG) give any dividends at all.

        And a note, a high dividend doesn’t necessarily mean it’s a good business practice or that the company is doing well. But you can’t say that a 9% dividend is being cheap/stingy.

  • YamiryuuZero

    “Q1: I feel Japan PM Abe appearing at Rio Olympics closing ceremony with Mario costume affects Mario’s image negatively. Why did he appear?”

    Oh yeah, because the PRIME MINISTER promoting your series on the biggest event of the year, where the entire world had its eyes set, wouldn’t be good PR for Nintendo at all. How the heck would it be negative for Mario’s image?!

  • JasonBall

    I like how Miyamoto assures Nintendo is doing fine by saying he hasn’t retired.

  • Reggie

    I wouldn’t mind more Nintendo anime. Just so long as 4Kids doesn’t dub them again…

    • Shonenfan

      Exactly. Give it to viz media and air it on cartoon network

  • ירון לביא

    Wasn’t there an article about the Switch selling more than 5 million?

  • Fore

    “Takahashi: Switch is a unique home console thanks to the Joy-Con. 3DS is
    already popular, so we will release more games for them.”

    No you silly man, Joy-Con is a thing to the side,the Switch’s design makes it unique, gives it it’s strength, and must be emphasized in the form of great games. Also please keep the 1-2 Switch stuff to a minimum. That game dropping in price and barely being bought (to my understanding) speaks volumes about whether or not people want that experience on their Switch.

  • Fore

    Also I like that PC response, by steering right past it and keeping on sailing. One day, you’ll have to give an actual, clear response to it, Kimishima & Co.

    • R.Z.

      Nintendo has that unscrutable PR strategy where they only do so much at E3 and spread their stuff all over the year, possibly to maintain a presence in the absence of third parties.
      I made it clear that I was underwhelmed by E3 but since they announced SNES Mini out of the blue (I consider that a megaton possibly bigger than their E3 announcements) I just got reminded that they don’t give half a damn and that you can’t judge Nintendo’s upcoming year by E3.
      About the games you mention, I’m guessing they will be revealed at Japanese events first, they probably think the reveals would be wasted on a western audience and I can’t blame them for that.

      • Fore

        Gah, I hate feeling like a second-class citizen.

  • Tlink7

    Some of those questions are really stupid xD like how does Mario appearing at the Olympics damage his reputation? And really, Nintendo on PC? Might as well just go full third-party then <.<

    • Fore

      Damnit T! Imagine Nintendo IP powered by PC! It’ll be glorious!

      • Tlink7

        It will be non-portable and certainly not glorious on my PC 😛

        • Fore

          *points at laptops and remarks the ancientness of T’s PC.*

          • Tlink7

            A laptop isn’t nearly as portable as my Switch <3 the day Nintendo stops making consoles is the day I stop playing video games reguarly

          • Aline Piroutek

            Laptops don’t have attached controllers. Just like smartphones don’t.

    • AJK

      It wasnt that mario was at the olympics but that he was with the prime minister of japan. it’s because it could politicise Mario. Imagine if Mario appeared with Trump for example.

      • Tlink7

        Meh, I think that is nonsense. The PM of Japan isn’t nearly as controversial as Trump. Mario is with famous people all the time; that doesn’t mean Nintendo supports them or their views. It was a one-off thing anyway

        • AJK

          Oh, I agree with you, but I think that’s why the question was asked.

          • Tlink7

            Ah xD well I did say it was a stupid question, so I thought you personally disagreed with me 😛 like the Japanese PM was representing his country (the Olympics is about countries after all), which Mario is a big part of. If the PM was there in name of his political party, then that would have been a different story

  • RoadyMike

    I don’t like the sidestepping on the Switch/3DS successor coexisting question. It’s like Nintendo knows they’ve killed any chance of a healthy life for a 3DS successor and they’re just bsing now.