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Nintendo FY3/2020 Q3 earnings results briefing recap

by rawmeatcowboy
31 January 2020
GN Version 5.0

Nintendo's FY3/2020 Q3 earnings results briefing is currently going on, and you can find a live-blog of the information below.

- Nintendo strategy is to expand population of those who encounter the IP
- No change to long term plans
- In 2015 first time to expand IP decision made.
- Beginning to see the results
- Nintendo TOKYO hasn't made a large impact, but is a fixed point for regular connectino with customers
- Nintendo wants to continue to capture range of people and enhance products
- Super Nintendo World is a particularly large initiative for expanding Nintendo IP
- it will launch in Japan before the Olympics, and will be a wide experience
- there is a Mario Kart attraction, power-up bands, and more parks to come
- the Illumination Mario movie is planned for 2022, and Nintendo is very proactive in design and production
- producer on the film is Miyamoto, as well as Chris M from Illumination
- Mario Kart Tour is Nintendo's largest-scale mobile launch, and has a wide variety of users
- 40% of Mario Kart Tour users are female
- on Black Friday week, the Switch sold 800k
- Switch sold over 2 million units in Dec. in North America alone
- Ring Fit Adventure continues to grow
- Ring Fit Adventure took off in Japan and Korea, then in Europe
- Ring Fit Adventure really took off after Black Friday, and has sold over 1.7 million, which has lead to shortages
- Ring Fit Adventure has a wide range of users, including a higher female ration than other games
- Luigi's Mansion 3 is seeing sales particularly strong in NA/EU, initial users in 20's but holiday seeing seeing more kids
- Pokemon Sword and Shield's momentum is continuing in the new year
- 1st party mix 56.59m +26% YoY, but 3rd party also growing 50% YoY in FY
- Switch Online has over 15 million paid accounts now, Nintendo is working on lapsed subs and new subs
- Switch and Switch Lite are for two different lifestyles
- Switch Lite sales are incremental
- Nintendo has to better communicate the benefits of Switch Lite
- Nintendo has no plans to release new hardware by the end of the year
- Nintendo's software development teams are now combined, and they can use a number of franchises to create content
- A wide range of genres will be released by 1st and 3rd party
- Nintendo will maintain activity in games with add-on content, as they want to sustain relationships
- Nintendo is consolidating offices in Tokyo, meaning 4 offices will go to one location to improve efficiency
- after the holidays, momentum is stronger for Switch than Switch Lite
- Pokemon fans picked up the Switch Lite, and Switch Lite has a higher female install base
- Nintendo is unsure the hardware cycle can be different, but they will continue to focus on software to promote Switch, and the goal is for things to be different from other devices
- Nintendo sees that there are still newcomers who are playing for the first time on Switch
- Nintendo says the game market still has unlimited potential versus smartphone/digital market
- finding the best tech for the user experience is the framework for adding features to devices
- Nintendo says they don't believe they compete with other brands
- Nintendo is very interactive with their Universal collaboration
- Nintendo wants their characters known by a wide demographic, and want to do something unique
- Nintendo used to think staying away from movies/TV with their brands was the right way to go, but is changing
- the most important thing for them with movie/TV is to hold the rights tot he projects
- Nintendo is very pleased with the Switch launch in China, even though the scale isn't that big
- Nintendo wants to communicate the unique software in China, which is a very mobile-focused marked
- getting Switch hardware/software sales up to snuff in China will take a long time
- Nintendo believes their making progress in expanding the exposure of their IP with mobile
- download numbers for their mobile offerings are very strong
- Nintendo wants to create more of a service where they have interactions with customers continuously
- Nintendo would like to do something new in the mobile field, and will show their idea when ready
- Nintendo sees it important to continue the momentum of Switch as rival platforms release
- Nintendo plans to continue working on software to extend the lifecycle of Switch
- Nintendo sees the 4th year of Switch sales as a mid-stage

[Link]