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Satoru Iwata commented on two interesting topics during the company’s financial briefing Q&A.

First, he stated that Nintendo won’t be referring to Wii U as a “home console system”, unlike the Wii, GameCube, and other products from the company. This is because not all gameplay will be limited to what you’ll see in front of your television.

Iwata said:

“…As for the Wii U, although this system is categorized in the general video game description of a home console system, the play styles the company is proposing with the Wii U are not limited to the ones which are available only in front of TV sets, so I believe that we will not use the term ‘home console system’ for this hardware. Whenever we launch a new video game hardware system, if we cannot sustain the momentum during the launch period and a certain period thereafter, it can invite very challenging situations just like the one the Nintendo 3DS experienced. Doing our utmost to avoid such a situation is another challenge the company is focusing on. As for other things, to sum up, we will make efforts to effectively implement what we have already prepared.”

We were hearing last week that Nintendo will announce partnerships with third-parties this year. We have Iwata’s full comments on that below.

“I recall that I also heard a concern at one of these occasions in the past that the company may lack sufficient resources, and I was asked, ‘How will the company cope with it?’ It is obvious that Nintendo does not employ so many people internally. If we look at the number of our own employees, we are not a so-called ‘resource-rich’ company. When we view our company from a different perspective, on the other hand, it is an advantage because Nintendo has more freedom and flexibility to be able to collaborate with outside resources as long as we can find good partners. As a matter of fact, although many tasks used to be done only internally in the past, we are now working with people outside the company in several business fields. When we make any relevant announcements on such projects, we cannot just say we are working with this company on that project. Unless we can make more comprehensive announcements by discussing the details of the subject product, it may not make any sense to you. So, we would like to discuss this topic sometime later. There are several projects we will be able to talk about this year. I hope that I will be able to pick up examples which will show that Nintendo is taking care of the business fields in which it lacks internal resources.”

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When the Wii U launches, Nintendo won’t just be concerned about the console’s price point and initial launch lineup. They’ll also be focusing on maintaining the sales momentum once it’s on store shelves.

Satoru Iwata believes that add-on content is one way of maintaining market momentum. This is because people could play a particular title once again if such content is announced. By doing this, Nintendo can keep some momentum, raise profits, and can increase the lifespan of certain products.

Iwata said:

“…In determining the launch date of the Wii U, we need to take into account not only what to release at the launch period but how to keep the sales momentum after then. In the past, I mentioned that having strong momentum is very important for game platform businesses, and as a matter of course, we are now more convinced of that and we need to have a backup plan ready.

“Regarding the add-on content I mentioned before, effectively providing such content for a game which has sold well could be a way to keep the market momentum. The sales pace is getting slower day by day even for the biggest hit software. If we could announce some big news in connection with the add-on content for such software, many people would start playing it again, which could be an opportunity to revive the momentum. In this context, the add-on content should be considered as a key to extending the lifespan of products and to maintaining the sales momentum, as well as a chance to earn additional profits.”

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Swapnote has been very successful since its arrival on the eShop. In a four week period following its launch, over 10 million notes were exchanged.

Nintendo president Satoru Iwata is hoping that the app will continue to be used in the future. He noted that the company is working on “some plans to encourage more people to use it, and you will find out what I am talking about when we reveal such plans in the future.”

Iwata said:

“I’m afraid I cannot show you anything quantitative as I have no data here. The only quantitative thing I can tell you is that more than 10 million handwritten notes have been exchanged in the four weeks after the launch of the service, which you can see in the Iwata Asks interview posted on our website (in Japan) just the other day. So I can say that users are using this software actively to some extent. And, I believe that the number of handwritten notes to be exchanged will increase at an accelerated pace if we can have users continue to enjoy the software for a long time. In fact, we have some plans to encourage more people to use it, and you will find out what I am talking about when we reveal such plans in the future. Therefore, we believe this software will gain more popularity going forward. From a qualitative standpoint, “Swapnote” is very popular among women. Watching the people around our employees and myself, I have the impression that a lot of women of all ages enjoy using it. Therefore, this software works really well to have women feel familiar with the Nintendo 3DS. I will be preparing some quantitative data for the next briefing.”

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Going forward, third-parties will be able to take advantage of micro-transactions on 3DS (and eventually Wii U).

Nintendo president Satoru Iwata said that the company will “ensure a relative level of flexibility for the Nintendo 3DS and the Wii U software compatible with the Nintendo Network as long as the developer has built a trusting relationship with consumers, except for the cases that consumers will be too disadvantaged.”

His full response can be read below.

“As a hardware manufacturer, or platform holder, it would be better to present third-party developers with as much freedom as possible. Some say that the guidelines and regulations we previously established are too strict and behind the times, and others say that Nintendo should not put too many restrictions on the features of software targeting the consumers who are familiar with micro-transactions. Therefore, we plan to ensure a relative level of flexibility for the Nintendo 3DS and the Wii U software compatible with the Nintendo Network as long as the developer has built a trusting relationship with consumers, except for the cases that consumers will be too disadvantaged.

“On the other hand, the reason I refer to Nintendo as a software developer is that we have a belief that our games should be a trusted brand for a very wide variety of consumers, including children and casual users who are not so familiar with the trends of video games. Therefore, we would like to have regulations with a certain degree of strictness so that consumers will get a sense of reassurance from our games. I am not saying that Nintendo is better than third-party developers. Each developer has its own customer base, and we should be more careful with this point for Nintendo consumers.”

Shinji Hatano, Senior Managing Director, General Manager of Marketing Division, also weighed in on micro-transactions:

“Third-party developers worldwide have recently been interested in micro-transactions and many of them are considering doing some business in this field. My team has exchanged information with domestic developers about what they would like to do. Each developer has its own desire, but basically, not only Nintendo but these developers share the same idea and have no objection that we need to establish the reliable system for the consumers on which they can feel safe and comfortable when they select the software. We will start organizing the various requests from developers and working with them to create new and interesting software. Please wait for some time for announcements from each developer.”

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During Nintendo’s latest financial briefing, the company announced that the 3DS is currently able to download packaged software. The company will incorporate similar functionality for Wii U as well.

When Iwata was quizzed about the company’s plans during a Q&A session, Iwata said “We have prepared the structure because we anticipate that it will increase in importance in the future”.

Nintendo is mulling over their approach for the digital distribution of packaged software, as they need to balance pricing and consider retailers.

Iwata said:

“What I told you today is that we already have the necessary infrastructure to digitally distribute the software on a scale as large as the packaged software. We can start it as soon as we decide to do so. We have prepared the structure because we anticipate that it will increase in importance in the future, and I wanted you to know as a part of my presentation today that the company is not denying the future possibility of doing such activities. As for the actual digital distribution method, we need to consider what kind of cooperation we can make with wholesalers and retailers, but we think that there must be various solutions other than just positioning digital distribution as an enemy to them. Upon close consultation with them, we would like to determine the details of our digital distribution. We therefore have nothing to tell you about the differences in prices or release dates. Some argue that a downloadable version to be sold at the same price as the MSRP (Manufacturer’s Suggested Retail Price) of a packaged version is not competitive because packaged software is often sold at a lower price than the MSRP. Downloadable versions that are too cheap will create a different problem, while no one will want to buy games online at a price that is too expensive. As the spread of speculation caused by our remarks on undetermined things might have a negative effect on our business, we would like to hold back from making more comments until when we can actually start such digital distribution. Please let me tell you one thing again: there must be a solution other than positioning digital distribution as an enemy to wholesalers and retailers. When we find one, we think that the solution will provide an interesting future in which both of us can benefit.”

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Wii U’s NFC functionality was one of the biggest revelations from Nintendo’s latest financial briefing. President Satoru Iwata didn’t share many details about how they’ll be take advantage of it in the future, though he did elaborate a bit during the company’s Q&A session.

Iwata hinted at a system in which consumers use e-money to make payments. This would be faster than using a credit card or a Nintendo Prepaid Card.

In terms of charging consumers for their network services, Nintendo may “build a solid system in which consumers will make payments at their will and with a minimal amount of effort.”

“…I mentioned the NFC (Near Field Communication) function for the Wii U (in my presentation today). In Japan FeliCa-based e-money is used the most, but the NFC standard compatible with FeliCa has been very popular. If we can provide a system in which consumers can use such e-money, they will far more easily be able to make payments than by entering credit card numbers or purchasing the Nintendo Prepaid Cards at stores. ‘SpotPass,’ in which consumers unconsciously get connected online, is enjoyable, but a system in which they unconsciously make payments online is unacceptable, we believe. Therefore, one answer to your question could be to build a solid system in which consumers will make payments at their will and with a minimal amount of effort.”

For Iwata’s complete remarks, see the second Q/A here in which he speaks about the Nintendo Direct presentations, Swapnote, and more.


Nintendo has added the translated version of the latest financial briefing Q&A, and it’s filled with all sorts of interesting information.

Shigeru Miyamoto was first asked about what makes network functions an interesting avenue to explore. He responded by by noting that “Nintendo has been making its best efforts to raise the Internet-connection ratio for years”, once again made note of the 3DS’ 60% connection rate, and noted how “there are some who like the excitement of being together with a lot of people online.”

His full response can be found below.

“A big question from the beginning. Speaking as a developer, giving no comment is the typical answer. But let me try to tell you something. Nintendo has been making its best efforts to raise the Internet-connection ratio for years. In addition to our efforts, network connections have rapidly become widespread, like cell phones which are always connected to the network. The connection ratio for the Nintendo 3DS (as Mr. Iwata explained in his presentation today) has reached approximately 60%, and we feel that the network environment has improved significantly. We also put importance on safety and reliability of the network because many people use it. We have concentrated on developing packaged software, but there are some who like the excitement of being together with a lot of people online. Electronic mail and chat are typical examples. Although you might not know it well, ‘Flipnote’ has become a hidden hit among our products. Millions of children who do not communicate on the Internet use this software. We are taking on various challenges including how to operate the system of note exchanges by children freely in a safe manner. In short, we trust the great potential of the network, but we are still in pursuit of originality through trial and error.”

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01/01. [Wii] Dragon Quest X: Rise of the Five Tribes Online (Square Enix) – 827 votes
02/02. [PS3] Dragon’s Dogma (Capcom) – 607 votes
03/04. [PS3] One Piece: Kaizoku Musou (Namco Bandai) – 543 votes
04/03. [PSV] Persona 4: The Golden (Atlus) – 493 votes
05/05. [3DS] Monster Hunter 4 (Capcom) – 489 votes
06/06. [PSP] Fotokano (Konami) – 378 votes
07/13. [PSP] Shining Blade (Konami) – 297 votes
08/10. [PS3] Binary Domain (Sega) – 289 votes
09/09. [3DS] Animal Crossing 3DS (Nintendo) – 282 votes
10/12. [PS3] Asura’s Wrath (Capcom) – 254 votes
11/11. [3DS] New Love Plus (Konami) – 247 votes
12/08. [PS3] Final Fantasy Versus XIII (Square Enix) – 217 votes
13/18. [PS3] 2nd Super Robot Wars OG (Namco Bandai) – 204 votes
14/14. [3DS] Kingdom Hearts 3D: Dream Drop Distance (Square Enix) – 200 votes
15/15. [PS3] The Last Remnant (Square Enix) – 196 votes
16/21. [PSP] God Eater 2 (Namco Bandai) – 178 votes
17/25. [PS3] The Last Guardian (SCEJ) – 168 votes
18/29. [PSP] Yakuza: Black Panter 2 (Sega) – 164 votes
19/28. [3DS] Dragon Quest Monsters: Terry’s Wonderland 3D (Square Enix) – 161 votes
20/19. [3DS] Theatrhythm: Final Fantasy (Square Enix) – 158 votes
21/NA. [3DS] Hatsune Miku & Future Stars Project Mirai (Sega) – 154 votes
22/24. [3DS] Fantasy Life (Level-5) – 151 votes
23/NA. [3DS] Fire Emblem: Kakusei (Nintendo) – 145 votes
24/27. [PSP] Tales of the Heroes: Twin Brave (Namco Bandai) – 127 votes
25/16. [PS3] Metal Gear Rising: Revengeance (Konami) – 126 votes
26/17. [PS3] Resident Evil: Operation Raccoon City (Capcom) – 122 votes
27/NA. [3DS] Kid Icarus: Uprising (Nintendo) – 119 votes
28/NA. [PSV] Ragnarok Odyssey (GungHo Online Entertainment) – 110 votes
29/22. [PS3] Persona 4: The Ultimate in Mayonaka Arena (Atlus) – 106 votes
30/NA. [PS3] Soulcalibur V (Namco Bandai) – 94 votes

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