Iwata believes digital distribution won’t replace retailers anytime soon

This is yet another snippet from Nintendo’s Q&A session of the company’s latest financial briefing. Nintendo president Satoru Iwata was asked about the connection rates of the DS and Wii (including Wii no Ma). According to Iwata, “the connection of Wii is around 35%, in the Japanese market. And that of DS is probably, 20% or so. It had increased with the measures like Nintendo Zone with McDonald’s to lower the hurdle for connection, but has not reached the 30% mark.” He then went on to discuss digital distribution:

“And regarding your question about the download sales including WiiWare and DSiWare, so-called digital distribution in English, there is actually a variety of views about how much it will replace retailers and package software. Most radical people even dare to say that retailers will be replaced by digital distribution in no time. But personally, I think it will still require a significant amount of time. In other words, it will require many years and months for the majority of video game purchase to become digital. In short, in 20 years or so I might say it will have probably changed. But in 5 years or so, I do not totally agree with opinions that no one will purchase titles at retailers by then. Habits of life do not change such radically and quickly.

Personally, what I believe is the most important factor for Internet connection is expanding titles’ lifespan rather than replacing the packaged software to digital distribution. With the Internet connection, players can purchase additional features or receive extra services. As a result they will play a single software for a longer time without feeling bored and will not sell it to the used-game shops, which will then contribute to more software sales. I believe such a utilization of the Internet connection is one of the major directions we should aim for and we will continue to try and raise the connection ratio.”