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2012 E3 Analyst Q & A Session - June 6, 2012

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I’m Reggie Fils-Aime, president and COO of Nintendo of America.

Before we open up this session to questions, we want to share a little perspective on Nintendo’s performance in the U.S. and where Nintendo 3DS and Wii U will go from here.

Let’s start with the Nintendo 3DS. Rather than going through details of NPD performance, which I’m sure all of you can recite from memory, I wanted to pull one statistic that might surprise you.

As you’re all aware, the sales of Nintendo 3DS hardware continue to outpace the sales of Nintendo DS hardware at similar points in their life cycles. But what’s less known is the fact that the Nintendo 3DS is outperforming the Nintendo DS on software as well. In its first 14 months versus the first 14 months of Nintendo DS, which is a platform that didn’t have to compete with mobile phones, social and other factors that are present today, the Nintendo 3DS has managed to sell 10.5 million physical games so far. This figure exceeds the pace that was set by the best-selling system of all time, and the Nintendo 3DS is just getting started. Over the next three slides, I’ll show you how we’ll continue to build momentum for the Nintendo 3DS platform.

Seventy percent of the Nintendo 3DS installed base here in the United States has connected Nintendo 3DS to the Internet. This is a key measure for us, and it’s the highest rate ever for a Nintendo handheld device. It’s enabling us and our content partners to offer new experiences and new services for consumers, like the Nintendo eShop and Nintendo Video. In fact, the Nintendo eShop paying consumers purchase nearly five items on average – those aren’t free applications – that’s nearly five paid downloads per individual.

Also, when “New Super Mario Bros. 2” is launched on August 19, it’s going to be the beginning of a new era for Nintendo, because from that date forward nearly all new first-party titles will be available as both physical products at retail stores as well as full digital downloads through the Nintendo eShop.

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