We would like to show you the DS lineup that includes not just the software to be launched by the end of this year but the ones for early next year as well.
You've seen the images of Nintendo DSi often during the footage, but all these games can be played on Nintendo DS and DS Lite.
The next software can be enjoyed by connecting DS and Wii, or players can cooperate to play when connected with the net. The DS version and the Wii version of the software will be launched on the same day.
And, there is one more important title. The first brand new Dragon Quest title for any portable game machine, eagerly-awaited "Dragon Quest IX" will be finally launched.
So far, I have discussed DS. And now, I would like to overview our plan for Wii.
Wii was launched exactly two years after the launch of Nintendo DS. One year and 10 months have passed since Wii was launched.
Last year, at this conference, I showed you this User Composition graph for Wii as of July 2007, when its installed base was around 3 million.
The most recent proportions are like this.
Wii has been on track to steadily expand into the Japanese market and the user base in each age demographic is becoming wider.
But on the other hand, we recognize that we still have a number of challenges with Wii.
One is, while we are expanding the lineup of services for Wii Channel and increasing Virtual Console and WiiWare software lineup, ...
...we are facing the challenge to comply with users who are demanding more data storage capacity beyond the existing internal memory.
Recently, SD memory cards have become inexpensive. However, how SD memory cards can be used when there is not enough room in Wii's internal memory is not convenient.
We have been listening to the customers, and we have been trying to come up with the solution that will not sacrifice the security nature of Wii but will cater to our customers' convenience. We will need more time to tackle it. But the basic direction has been decided, so I would like to update you on this today.
We will make it so that, when there is not enough room on the Wii's internal memory, you will be able to purchase and download Virtual Console and WiiWare software directly from the Shopping Channel to an SD memory card. We will also make it so that you will need to go through just one process in order to transfer Virtual Console or WiiWare software stored on an SD card to the Wii console and then be able to play it. We would like to deal with this issue utilizing two methods. Since the updates to realize these new structures will require significant revisions to the Wii system, and these changes need to be made by taking care of a variety of different angles, this method will become effective beginning next spring. For some of you, this may be considered late. But please know that we really appreciate your cooperation and understanding. We are working hard so we can begin the service as soon as possible.
One more challenge is how to increase the net connection ratio. Wii is the hardware which can prove its real worth as "the machine to provide something new everyday" when it is connected with the net. Last year at this Nintendo Conference, I announced our effort with NTT East and West to increase the internet connection ratio of Wii, which is called, "Easy! Convenient! Wii Connection; You can leave it to us Pak" service. Ever since the service was started on November 29, 2007, many people have been using it. NTT East and West told us that about 35% of people who have used this service did not use PC in their homes. As new people -- other than the traditional net users -- are starting to use Wii to get connected with the Internet, I feel we are making progress in our challenge to construct "New relationship between family and TV set and the Internet." Ordinarily, those who purchase new video game hardware in the launch period are more familiar with the internet than the late purchasers. So, if we do nothing about it, the net connection ratio can go down as the hardware's install base expands. In the case of Wii, on the contrary, the net connection ratio is gradually increasing. However, we cannot say that today's ratio is sufficient.
The first hurdle is that Wii owners do not fully understand what they can do or what kind of benefits they can enjoy when their Wii consoles are connected to the internet. While the total gaming population has been showing the drastic increase, Nintendo's efforts have not reached sufficient levels.
To do this, a 30 second TV advertisement is not enough to convey all the messages. We cannot rely on many of our consumers to research this on the Internet. So, beginning this fall, we will incorporate a 3 and a half minute long video into Wii as a Wii Channel when consumers purchase Wii hardware. By doing so, we are hopeful that a number of consumers will review the video at least once.
The contents of the video will be an introduction of Wii Channels, WiiWare, Virtual Console and Nintendo Wi-Fi Connection. We would like to undertake more of these types of efforts so an increasing number of consumers are able to understand what Wii can offer when it is connected with the Internet.
Another hurdle is that people cannot tell which devices are necessary to connect Wii with the Internet.
For those consumers, we have decided to offer "Nintendo Wi-Fi Network Adapter." This September we began selling it at our official web site. Beginning later this month, several retail outlets will offer this accessory. With the simple AOSS to realize the easy connection, DS and Wii can be connected to the internet with an appropriate level of the security.