Nintendo FY3/2019 Q2 financial results briefing live blog
Nintendo is currently hosting a financial results briefing to cover the FY3/2019 Q2 period. Some information is currently being relayed by analyst David Gibson. We’ll round up all of the tidbits as they come in below.
Briefing
– GPM – better YoY because software mix, digital sales increasing margin also
– Have mainstay titles and new titles growing in sales, so platform gaining momentum; Nintendo says it is in favorable condition heading into holiday
– Taking measures so users play on switch for long period
– Update of game content and additional contents: MK8, Plat2 – updates since April; Mario Tennis Aces – free updates; game online events
– Switch sell through for EU/US/JP – chart shows Sept units slowing after peak in June
– Switch bundle ratio 60% Odyssey, MK8 50-60%, Zelda 40-50% in Sept, no change from Jan period
– Nintendo online – surprised that > 50% of those who subscribed elected to do 12-month price
– Digital sales: seeing record growth, download version increasing, packaged games was 60% of digital sales
– Seeing momentum in Fortnite; kids getting together and playing
– Octopath Traveler sold 1m digitally within first 3 weeks
– Switch has over 500 companies developing 1300 titles for the platform – indie
– This holiday season Nintendo has solid foothold and prepared to release a number of titles
– Likely to meet expectations of household customers thanks to Super Mario Party, Pokemon Lets Go and Smash Bros
– Super Mario Party: designed to be simple, to be a lot of fun, think will be popular wherever people together
– Super Mario Party sold 1.5m globally this month, very good start and have momentum ahead of holiday season, this also boosts Joy-Con sales
– Pokemon Lets Go: easy for first time players but also familiar for existing fans; new experience for game users and can shake the Joy-Con when capturing Pokemon plus first time 2 people can play together; Pokemon Ball Plus can replace the Joy-Con and can hear monster in the ball
– Pokemon Lets Go: those who reserved the game, 50% also reserved the Poke Ball Plus
– Pokemon Go connectivity – move monsters from Go into the game, then get special items
– Smash Bros.: expected to be the biggest game, largest collaboration in the industry, has unique characters, think will gain popularity on wide variety of users
– amiibo sold 50m accum so far, 3 special versions for Smash Bros, special controller for Smash also coming
– Switch bundles with Pokemon in Nov, and Fortnite and Diablo to help switch sales
– NES mini and all versions sold 10m to date
– Dragalia Lost has over 1 million pre-registrations, score of 4.8 and sales close to 4 billion yen now to date
– Super Mario Run – stable download rate, now close to 300m life to date
– Fire Emblem Heroes continues to see growth, overseas active users exceed domestic
– Animal Crossing: Pocket Camp active users – 50% were at launch so keeping users
Q&A
– Aim to drive appeal to existing and new users, for existing we are launching Smash Bros etc and additional content plus Switch online
– To drive expanded user base: fist time who played but not purchased – need to communicate the attractiveness; played games but not Nintendo – line-up is different and more attractive, can play with others; those who don’t play games – need to approach these people
– Q: On pricing of games, strategy? A: for mainstay titles we will not discount the titles
– Q: cross platform gameplay plans? As long as customers want it we will do it. For own current titles there are no plans
– Q: policy for shareholders? A: continue to be entertainment company designed to maximise value of IP via dedicated devices and things like movies. As for return to shareholders – at this time nothing new considering
