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Financial Results Briefing FY15/16 - English Q&A available

You might have noticed from the many posts below this one, but the full English Q&A session with Tatsumi Kimishima is now available. Check it here!

Kimishima on the matter if the Wii U's decline can be covered by NX

This comes from the Investors Q&A summary...

''We are predicting about 800,000 Wii U hardware sales in the fiscal year ending March 2017, which is a decrease of about 2.4 million units compared to the previous year. NX and smart device business will be essential to cover this gap, but we also expect download content business to play a role. However, we are planning with the expectation that NX sales will compensate for much of the impact on sales from reduced Wii U hardware sales.''

Kimishima on what the renevue will look like for mobile, five titles by March 2017

This comes from the Investors Q&A summary...

''We plan to have released about five titles (including Miitomo) by March 2017, but the next applications will release in the fall, so the latter half of the year will influence our results. In that sense, it is included in the 45 billion yen operating income and the expected 500 billion yen sales results predicted for the fiscal year ending March 2017, but its impact will not be on the level of the majority. However, (as of the second application) we will be putting out applications that use IP from actual games, so it will be a decent value for the fiscal year ending March 2017. In the mid-to-long term, of course we want to make the smart device business a pillar of profit, so hypothetically, if sales of around 500 billion yen continue in the future, the sales would not grow to the scale of hundreds of billions of yen as you just mentioned, but we believe that it will become a big volume in the future. It is still a little early to get into specific numbers at this point in time, so that is all I can say for now.''

Kimishima on how Nintendo balances its money moving forward

This comes from the Investors Q&A summary...

''Concerning our thoughts about the need for funds, as we get the business running smoothly and increase cash inflows, I think that we need to think very seriously about whether we are building on that progress.

That is our approach to money balance. Right now we are proceeding with many projects that make use of our IP, and in those plans there are several projects that will require funds, so we want to use funds for those purposes first. The launch of NX is not the only project which requires funds, and we want to prioritize using it on projects that make use of our IP.''

Kimishima on the launch timing of the NX and software available

This comes from the Investors Q&A summary...

''There has been no change in our way of thinking about launch times. We believe that when launching hardware, the amount of quality software for consumers to play that is available at launch is important, and that we ought to determine our launch dates based on this. The fact that consumers spend more money in the holiday season may be a big factor in why launching then is a good way to start. However, our hardware and software business structure does not end in that year. We want consumers to continue to play this game system for many years, so we believe that in the beginning it is most important to make sure that everything is in order at launch. In that sense, our approach is that we should wait until we can provide a fully realized experience rather than rushing to launch in the holiday season, and this approach has not changed.''

Kimishima on deciding the development of IP on both smart devices and video game systems

This comes from the Investors Q&A summary...

''I think that for dedicated video game systems, the number of units purchased is definitely the most important. Other than the number purchased, the other important thing is how the game is being played after it has been purchased. I do not mean this in the sense of how the game is rated, but rather that how the game is played connects to the future of the IP. Therefore, we believe that in addition to the number of units purchased, the activity numbers including hardware activity, and how much the game continues to be played are both important factors as well. I think that this is the same for both dedicated video game systems and smart devices.''

Kimishima on how Daily Active Users play a role with Nintendo's mobile games

This comes from the Investors Q&A summary...

''I think that there are lots of ways to evaluate it, but when a user plays continuously it supports the fact that the application has a lot of appeal. This is connected to DAU, so it is important to see how much we can raise the absolute value of DAU, but the rate of continued use is important as well. If the rate of continued use increases, naturally, the DAU will increase as well, so we are keeping a close eye on that. We believe that as this increases, though it will vary by application, revenue from in-app purchases will change as well.''

Kimishima on Miitomo expectations and how to keep it successful

This comes from the Investors Q&A summary...

''I believe that Miitomo reaching 10 million unique users in the short time since its release shows that it has achieved the level we had planned. At the same time, this system lets us hear the consumers' opinions. I believe this business requires us to continue to update to respond to these opinions in various ways, so we knew from the beginning that we would not be able to satisfy everyone right away. We believe that it is important to continue to revitalize the applications by quickly implementing feedback from consumers. Only one month has passed since distribution began. Our goals are to act on the feedback we received during this period quickly and increase the amount of consumers who are playing daily.''

Kimishima on the effect of the NX for the financial year

This comes from the Investors Q&A summary...

''We will introduce NX concepts and details at another time, so I will restrict my answer to the question asked. You are correct about needing a solid lineup of software. One of the reasons for choosing the launch timing that we did is so that the software lineup will be ready in time for the hardware launch. Not only at launch, but we also need to be able to continuously release titles after launch. We are planning for this to be a platform that consumers can enjoy for a long time.

Next, about how we are looking at cost, we are not thinking of launching the hardware at a loss. When Wii U was launched, the yen was very strong. I am assuming that situation will not repeat itself. Selling at a loss at launch would not support the business, so we are keeping that mind in developing NX.''