Presentation - 2010 E3 Expo Analyst Q & A Session

2010 E3 Expo Analyst Q & A Session - June 16, 2010

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13	When you launched Nintendo DSi, you announced and described the concept around it as "My DSi," with hope that everyone would use it every day. How has that vision changed now with Nintendo 3DS?
13	Iwata: Even during the development of Nintendo 3DS, the concept of it being My DS (in other words a personalized or customized system) has not changed. I think the owners of Nintendo 3DS can take the full advantage of its background communication that I briefly mentioned earlier when the owners keep that device with them and carry it around with them wherever they go. I think that you can look at Nintendo 3DS as taking that idea to the next step in and making it feel new and fresh in a way to match the needs of the future that will continue to expand on that idea of a personal system for the consumer.

When you launched Nintendo DSi, you announced and described the concept around it as "My DSi," with hope that everyone would use it every day. How has that vision changed now with Nintendo 3DS?

Iwata:

Even during the development of Nintendo 3DS, the concept of it being My DS (in other words a personalized or customized system) has not changed. I think the owners of Nintendo 3DS can take the full advantage of its background communication that I briefly mentioned earlier when the owners keep that device with them and carry it around with them wherever they go.

I think that you can look at Nintendo 3DS as taking that idea to the next step in and making it feel new and fresh in a way to match the needs of the future that will continue to expand on that idea of a personal system for the consumer.

14	Over the past year, growth on the Wii appears to have slowed. Growth on the PS3 appears to have accelerated. So how do you plan to combat that going forward, particularly given the launch of motion control on the PS3?
14	Reggie Fils-Aime: I think we need to clarify that there’s a big difference between growth and absolute units sold. The fact is, when you look at the absolute number of units sold, it is clear that our pace is dramatically better than the other home consoles. As we showed on the chart, it’s also very clear that as you look at what’s been happening month-to-month, the absolute level of sales continues to widen in our favor versus the other home consoles. So it’s easy to talk about growth when you’re working off of a very low base. In terms of where we go in the future, our path is very clear. We want to provide compelling experiences for the consumer. We want to do that in a way that has tremendous value for the consumer and that one-two punch, we believe, is going to continue to drive our business. The consumer today can get a Wii configuration that has two fantastic pieces of software and a Wii Motion Plus for $199, and the consumer is responding. We believe that the consumer will respond to METROID: Other M, Wii Party, Kirby’s Epic Yarn, Donkey Kong Country Returns, and to all of these fantastic franchises that we’re bringing to bear. If we continue to execute that, we will continue to widen the gap versus the other home consoles and that is the key because as you drive the installed base -- to the point made earlier -- that’s how you drive software sales and monetize this business moving forward. We believe that’s the right formula.

Over the past year, growth on the Wii appears to have slowed. Growth on the PS3 appears to have accelerated. So how do you plan to combat that going forward, particularly given the launch of motion control on the PS3?

Reggie Fils-Aime:

I think we need to clarify that there’s a big difference between growth and absolute units sold. The fact is, when you look at the absolute number of units sold, it is clear that our pace is dramatically better than the other home consoles. As we showed on the chart, it’s also very clear that as you look at what’s been happening month-to-month, the absolute level of sales continues to widen in our favor versus the other home consoles. So it’s easy to talk about growth when you’re working off of a very low base.

In terms of where we go in the future, our path is very clear. We want to provide compelling experiences for the consumer. We want to do that in a way that has tremendous value for the consumer and that one-two punch, we believe, is going to continue to drive our business. The consumer today can get a Wii configuration that has two fantastic pieces of software and a Wii Motion Plus for $199, and the consumer is responding. We believe that the consumer will respond to METROID: Other M, Wii Party, Kirby’s Epic Yarn, Donkey Kong Country Returns, and to all of these fantastic franchises that we’re bringing to bear.

If we continue to execute that, we will continue to widen the gap versus the other home consoles and that is the key because as you drive the installed base -- to the point made earlier -- that’s how you drive software sales and monetize this business moving forward. We believe that’s the right formula.

Presentation | Q & A

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