When we analyze data like this, it is true that Nintendo’s 1st party titles and titles from Pokémon Company occupy a significant portion of Wii software sales in Japan.
However, it is also true that the situation will change as time goes by.

In case of Nintendo DS, you can see how the 1st party-3rd party software sales ratio has changed in Japan, especially since its 2nd year after launch or starting from the latter half of 2006 in a significant manner.
In comparison, Wii has just passed through the initial three 6-month time periods and it might be inevitable that 1st party titles appear to show significant presence there.
We believe that Nintendo’s first party titles’ important mission is to make potential customers feel like purchasing the hardware in order to play a particular software. For us to expand the installed base of our hardware, we need to introduce potential customers to attractive software one after another. Accordingly, especially for the first two years or so from the launch of a new hardware platform, we make a point of launching strong first party software on a periodic basis.
As you know, software developments take time today. In case of DS and Wii, Nintendo has chosen to take a boldly different direction from the way how past video games have evolved. Therefore, it must have been inevitable for our third party developers to need some time before they can realize that DS and Wii can become the hardware platforms that they are willing to spend their important resources and before they can start developing software uniquely appropriate for DS and Wii.

When we look at the situation all around the world, the picture looks significantly different. On a global basis, the number of DS software titles whose consolidated shipment topped 1 million during the fiscal year just ended, was 15 for the titles sold by Nintendo and Pokémon Company and there were 11 titles from the third parties.
When we look at the cumulative sales from the launches, 29 titles from Nintendo and Pokémon Company were over 1 million shipment, while 28 titles from the third parties exceeded 1 million shipments. In other words, almost equal number of third party titles are making 1 million sellers.

Although it has been much shorter since the launch of Wii, there were 12 titles from Nintendo and Pokémon company which exceeded 1 million units in shipment during the most recent fiscal year alone and there were 8 third party titles in the same period. When we see the life-to-date cumulative shipment numbers since the respective launch dates of software, there were 14 titles from Nintendo and Pokémon Company, and 12 titles from the third parties, whose shipment topped 1 million. Accordingly, we can also say that there are already an almost equal number of third party hits for Wii platform also.

In the U.S., many of the overseas developers have already started rolling out applicable software for Wii, so Nintendo’s first party software sales occupies less than a half of the total Wii software sales.

For DS software too, third party software are becoming the majority.

The same trend can be observed in four major countries for video games sales in Europe.

As for DS software in Europe, since our Touch-Generations software titles such as Brain Training games have stronger presence there than in the U.S., the share of Nintendo’s first party titles is higher. Yet, a number of software developers are proactively introducing their quality software and showing results.
These data should clearly explain that such observations as “few third party software are selling well on Nintendo platforms” are not accurately reflecting the fact.

WiiWare is a service for Wii users to download and purchase new Wii titles and it will pave a road to new possibilities for game software developers.
I myself as a former video game developer, have been involved in game developments since the dawn of home TV games. In the early days of the Japanese NES, a couple developers could create a software in a few months. Nowadays, such development styles will hardly work.
With my developer background, I have been very concerned that even if games such as Tetris, which lacks graphical gorgeousness but has a loyal following, there appear to be little chance for them to succeed in the current video game market today. The current system in the market is limiting the ability of small development teams with limited financial resources to dare create something boldly new.
WiiWare is the environment which allows compact-sized video game software (to be downloaded) electronically, without inventory risks, so that game developers are given the opportunity to create something brand new with only great ideas and without having to worrying about other resources..
In Japan, this service has already started. In the U.S. and in Europe, the same service starts on May 12 and 20, respectively.

WiiWare software developments have already started in the U.S. and Europe too. I would like to note the fact that a number of small-sized developers are proactively entering into this business by sensing the business potential of WiiWare.
Companies with less than 20 employees comprise 56% of the total number of companies which have so far decided to make WiiWare software. When we look at the percentage of the companies with 50 employees or less, they constitute three quarters of all.
This must be the sign that these companies think that WiiWare is a worthwhile business for them to aggressively pursue.