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3DS

Nintendo of Europe has just confirmed that Harvest Moon: The Lost Valley will arrive on European shores June 19 for 3DS.

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In the video game platform business, although people tend to focus on the huge spike of sales immediately after a game release, looking back at the history of Nintendo’s handheld game systems, not only does hardware sell well with new titles, but our systems also tend to sell well paired with big titles that have become evergreen.

This tendency is strongest in the overseas markets, and we will aim to expand our hardware by promoting new titles as well as retaining the energy of our abundant evergreen titles (which are not new on the market but maintain consistent sales.)

These are the cumulative sales figures of some of the Nintendo 3DS software sold so far. Although “Mario Kart 7” was released in 2011, “New Super Mario Bros. 2” and “Animal Crossing: New Leaf” were in 2012 and “Pokémon X” and “Pokémon Y” were released in 2013, each of these titles sold more than 1 million units in the subject fiscal year. In the overseas markets especially, many titles tend to become evergreen and sell consistently even long after their releases.

“Super Smash Bros. for Nintendo 3DS” was released in fall last year and sold 6.75 million copies by the end of the subject fiscal year. “Tomodachi Life” was released in Japan in November 2013 and in the subject fiscal year overseas, and it sold particularly well in Europe with the global cumulative shipment reaching 4.15 million units. Also, from their release in November last year to the end of the subject fiscal term, 9.94 million units of “Pokémon Omega Ruby” and “Pokémon Alpha Sapphire” were shipped. While on one hand, we will keep these titles evergreen and on another we will add new quality software, we aim to further expand the sales of Nintendo 3DS hardware by increasing its broad software lineup.

In addition, as I mentioned in my presentation for the last Financial Results Briefing, we are working on further promoting multiplayer gameplay using the local communication function of Nintendo 3DS in the overseas markets as well. This shall play a major role for franchises such as “Mario Kart,” “Animal Crossing,” “Super Smash Bros.,” “Pokémon,” “Monster Hunter” and for the “YO-KAI WATCH” game, which will be released in overseas markets in the future.

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This is the graph displayed in the last Financial Results Briefing, which shows the percentage of change found in the sell-through data of Nintendo 3DS hardware and software in each market for the third quarter of this fiscal year compared to the corresponding term of the previous year.

As you can see, except for Japan, where New Nintendo 3DS contributed to the full quarter, the hardware sales fell far short of the previous year in the U.S. and Europe where the new models were not available during the third quarter and in Australia, where they were launched in late November.

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In the fourth quarter, you can see the launch of New Nintendo 3DS in the overseas markets boosted the sales of both hardware and software from one year prior and brought momentum to the platform once again.

On the other hand, the Japanese market was in between big titles and this resulted in a different outcome after having enjoyed five double-million sellers in the latter six months of the year 2014.

In the Japanese market, the cumulative sales of Nintendo 3DS hardware since its launch are about to reach 19 million units. Regarding the Nintendo 3DS software market, the situation remains promising not only because there have been numerous major-hit titles released since the latter half of last year, but also because we have high hopes for the many titles that are planned to be released this year by both Nintendo and other game software developers. On the other hand, regarding the Nintendo 3DS hardware, four years since its release, we are seeing a certain level of positive results by the release of New Nintendo 3DS, but we still have not been able to break free from the period beyond the popularization of the Nintendo 3DS in which the performance leveled off. I believe that the key to revitalizing the Nintendo 3DS business in Japan is by intensifying its appeal to even more generations of female consumers.

This year, we are planning to release titles that offer high potential to appeal to female consumers, and we would like to further strengthen our approach to reach a female audience covering wider generations.

Meanwhile, in the overseas markets, the Nintendo 3DS hardware has not spread to a level where it has reached its market potential. In other words, there is plenty of room for growth.

Since the release of New Nintendo 3DS in February this year, especially for the large-screened New Nintendo 3DS XL, stock in stores has continued to run low in the U.S. and Europe, which of course is a sign that the game platform has momentum.

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Capcom

Like Nintendo, Capcom reported its latest financial results for the full fiscal year today.

Capcom’s revenue decreased by 37.1 percent compared to the previous year. For the period ending March 31, the company brought in ¥64.3 billion ($538.4 million). That’s Capcom’s lowest yearly revenue figure since 2004 (¥52.7 billion).

There are a few bright spots. Capcom’s operating income rose 2.7 percent from the previous fiscal year while net income saw a boost by 92.1 percent to ¥6.6 million. Additionally, Monster Hunter 4 Ultimate was cited as a success.

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