IR Information

Corporate Management Policy Briefing /
Semi-Annual Financial Results Briefing
for Fiscal Year Ending March 2015
Oct. 30, 2014

As I have mentioned, “Super Smash Bros. for Nintendo 3DS” kicked off very well. Now I would like to explain how it will affect the Wii U installment.
As for bringing the “Super Smash Bros.” franchise into multiplatform format and releasing the Nintendo 3DS version first, there had been skepticism that each would end up consuming the demand for the other or it would weaken a key title for the Wii U platform. We now have a strong belief that our decision is giving the “Super Smash Bros.” franchise even more momentum. On the morning of October 24 in Japan, we released a trailer titled “Super Smash Bros. for Wii U 50-Fact Extravaganza.” A great number of people watched it online and we received a large amount of feedback.
The two installments of “Super Smash Bros.” are packed with elements that utilize the specific features of each platform. Before disclosing the “Extravaganza” trailer, people had been skeptical of whether we could actually have 50 new facts about the Wii U version. But as the trailer showcased the differences between the two versions, which seemed to surpass expectations, pre-orders for the Wii U version rapidly started to increase.
“Super Smash Bros.” is the most appealing when played together with others, and as the two versions have noticeable differences, they will not cannibalize each other. Rather, as more copies of the Nintendo 3DS version are sold and more people enjoy it, the momentum for the Wii U version becomes stronger.

With “Super Smash Bros. for Wii U,” we will launch “amiibo,” a new category of products for us. amiibo is a series of figures equipped with NFC that can connect with video games. It is not only one example of Nintendo’s IP utilization strategy but it also enables us to achieve multiple things at the same time.

Firstly, amiibo figures are offered at an affordable price range when compared to packaged video game software. Even people who may not be able to purchase software frequently may be able to afford to purchase character figures one by one. This could spark interest in the game or contribute to maintaining use rates of our video game platforms.
The amiibo figure lineup for “Super Smash Bros.” will continue to be released even after this year-end sales season, and we hope that this will help to update store shelves. As store shelf space is limited, some amiibo will remain stocked on the shelves as staple choices while some will be limited-time offers which will cede their positions to new ones once they are sold out.
With these offerings, I believe the Nintendo characters lined up on shelves, which usually only contain standard-sized boxes, will have an outstanding presence, and this means a lot to us.
Even though amiibo will be compatible only with Wii U at the launch, we are proactively making progress on Nintendo 3DS compatibility. As the New Nintendo 3DS handheld contains an NFC reader/writer, it will be able to support amiibo after a software update. The Nintendo 3DS platform will also be able to do the same via an external NFC reader/writer, which is scheduled to be launched in 2015. With these offerings, we will increase the amiibo compatible software lineup for Nintendo 3DS.
amiibo is a new category of products for us that creates a new kind of value by being supported by multiple titles. We hope that by making amiibo figures compatible with multiple titles, consumers will be happy to carry the figures with them and will be eager to try them with new software.

In “Super Smash Bros. for Wii U,” amiibo is an in-game character that you battle and train, and it can play with you as your buddy or even your opponent.
Of course, amiibo support will vary depending on the title and this is only an example of the possibilities. We will offer further instances of amiibo compatability with various products next year.

In the dedicated video game platform business, the usage rate of digital channels to sell software has been increasing. Here, I would like to tell you about a few approaches Nintendo has been undertaking.

From this summer, we commenced public transport e-money payments, starting with JR East’s “Suica,” on Wii U.
By the introduction of this function, the barrier to make small payments has been lowered, and more consumers who had never purchased products digitally before are trying them. In other words, with the increase in the number of Wii U hardware, which has cleared the barrier for digital purchases, introduction of the Suica payment function has played a role in “lowering the payment barrier,” which is an important issue in the digital business.
In addition, one clear example of the increase in the usage rate for payments under 500 yen is the 24-hour karaoke ticket.
We are considering making Suica payments available also on New Nintendo 3DS. If this is made possible, since there is an abundance of under-500-yen digital content for Nintendo 3DS, we are expecting new possibilities and opportunities.

Also, we are continuing our approach on “the expansion of the area of contact with consumers” in the digital business.
As to the Japanese market, we are continuing our proactive approach on the expansion of digital distribution channels. Among convenience store chains, we have started selling POSA download cards at Lawson and Seven-Eleven. As for online shopping, we have started selling download codes on Amazon.
As a result, regarding the download version of “Super Smash Bros. for 3DS,” the rate of sales through retailers has gone higher than any other game that Nintendo has released. We feel positive that the expansion of distribution channels will lead to the expansion of market size.

On the other hand, as for the U.S. market, we have started direct digital sales through, the homepage of our subsidiary, Nintendo of America.
Consumers who are interested in a game can visit the homepage for more information, and from there, they can purchase the game online or find a retailer that sells it.
Along with enhancing convenience, we are working on expanding the area of contact between consumers and digital content to make game purchases easier and more convenient. For example, other than access from PCs, We have made access from smart devices possible as well.
In this manner, we will work even more proactively on expanding digital distribution channels in a way that follows the marketability of each country, the market and business customs, and expand the area where consumers can come into contact with our products.

In addition, we are continuing our approach on enhancing convenience for consumers who have purchased the download version of a game.
Until now, consumers were required to turn on the game platform and enter the download code at Nintendo e-Shop to play the download version of a game purchased at an online shop, which created a usability issue. From now, by entering the Nintendo Network ID (NNID) and password at the time of purchase at an online shop, the game will be automatically downloaded through the SpotPass feature, without requiring consumers to enter the download code at Nintendo e-Shop on Wii U or Nintendo 3DS. This function makes possible, for example, purchasing a game at an online shop while being away from home, and enjoying the game soon after arriving home, without having to wait for the game to be downloaded, which would be completed by then.
This function is available at Rakuten Books and starting today, and it will be available at other online shops, including Amazon, in future.

This automatic distribution system has also been implemented for digital sales at in the U.S, as introduced earlier. By clicking on the orange button and entering your NNID and password at the time of purchase, automatic distribution is made possible. Then, the game is automatically downloaded through the SpotPass feature after purchase, without requiring the consumer to enter the download code at the Nintendo e-Shop on the game platform.


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