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Financial Results Briefing
for Fiscal Year Ended March 2010
May 7, 2010 Presentation by Satoru Iwata, President
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When we look at Nintendo DS software during the most recent fiscal year, no software sold more than 10 million copies. However, Pokémon HeartGold Version & SoulSliver Version were launched in September 2009 in Japan and in March this year in the U.S. and in Europe, but already sold 8.4 million units as of the end of March 2010. So, we are looking forward to the future sales of this software.


On a global shipment basis as of the end of March this year, the number of Nintendo’s first party titles, including those from the Pokémon company, that shipped more than one million units, increased by eight to become 45, while the same number for the third party software increased by 15 to become 69.


As for Wii, the number of Nintendo’s first party titles, again including those from the Pokémon company, that shipped more than one million units was increased by four to become 22, while the same number for the third party software increased by 21 to become 57.

Here, I’d like to raise an example of third party software that has been showing rather unique sales transitions.


Let me talk about a software called JUST DANCE from Ubisoft.

This software is not available in Japan. The European packaging is shown to your left, the U.S. packaging to your right.

As many of you may not know what kind of software this is, I’d like you to take a look at the TV ad that I borrowed from Ubisoft.


As you can see, you are supposed to dance to the music with the Wii Remote in your hand.


Since Ubisoft is headquartered in Paris, let’s see the sales transitions in Europe first.

To make this chart, Nintendo compiled sales data issued by GfK in 7 countries in Europe.

When this software was launched at the end of November last year, first week sales did not even reach 10,000 units. What is very unique about this software is that the appeal of this software has been spreading as time went by since the launch. As you can see, the sales have already topped 1 million, and even after 5 months since launch, the sales pace has been consistent.


Let’s look at the U.S. sales next. Nintendo picked up the sales data of JUST DANCE from the monthly sales data issued by the NPD Group. This software was launched on November 17 last year. In the two weeks of November, the software sold less than 10,000 copies, which is similar to or even worse than Europe.

It must be fair to say that this software did not receive huge expectations before and during the launch period.

On the contrary, the sales have topped 1 million in the U.S. too, and even after the year-end sales season is over, the sales pace have remained consistent.


It was said sometime ago that game software were selling in a healthier way in the overseas markets than in Japan as the software there were able to sell steadily for comparatively longer periods. When we look at the sales transitions of the recent big titles, however, we notice that a number of software have very short life spans in the market. In other words, they may realize significant sales volume in the first week, but soon see a sudden fall in sales. Under such circumstances, some may be tempted to measure the value of the software solely by its launch week sales. However, as Nintendo has tackled with gaming population expansion, software that we discussed today such as Brain Training and Nintendogs for Nintendo DS, and Wii Play, Wii Fit, New Super Mario Bros. Wii and Mario Kart Wii for Wii, which have been selling for a very long time, were born.

Among the new consumers who started playing as we expanded the gaming population, there are a number of people who just cannot tell which software was sold when or which ones are the new titles and which ones have long tails. Nintendo has been deploying its software promotional activities of Nintendo DS and Wii by taking into consideration such customers. A number of software which have shown certain results on Nintendo platforms were not showing active sales in the launch period. A number of them are actually those with long tails. For example, the first week sales of Brain Training in Japan were less than 50,000 copies. A more recent example is Tomodachi Collection for Nintendo DS, which had launch week sales of 100,000 copies, but has already topped the 3 million sales mark in Japan and continues to sell.

When a software with first week sales of less than 10,000 units is able to show such a strong, long-term sales cycle, I feel it has a strong value. It will be increasingly important for Nintendo to generate such software by further collaborating with the software publishers.


Next, I’d like to discuss our future plan.


As we issued a release in Japan on March 23, we are planning to launch a new handheld product to succeed the Nintendo DS series called “Nintendo 3DS” during this fiscal year, on which games can be enjoyed with 3D effects without the need for any special glasses and which will have backward compatibility so that the software for Nintendo DS series, including the ones for Nintendo DSi, can also be enjoyed.

I believe this is the subject on which you would like to ask many questions. But as for this new product, all I can reiterate today is that we will show it at E3, which will be held from June 15 this year in Los Angeles and that we cannot accept any related questions until then. I appreciate your understanding.


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