Iwata discusses about expanding into new markets
Coming from Satoru Iwata...
In addition, we will change our approach to new markets in which we have not sufficiently expanded due to various issues such as infrastructure, consumers’ income and the legal system.
So far, we have localized our products which we distribute in developed markets, where video game markets have been firmly established, and tried to sell them in new markets. This method worked to some extent in the past, but it has recently become far more difficult to recoup our investment because of increasing hardware production costs and the cost of localizing highly sophisticated and complicated software.
Needless to say, there are core users in new markets who buy our hardware and software at the same price as in the existing markets and we really appreciate these consumers. For a large majority of consumers in the new markets, however, the current prices of hardware and software in the existing markets are generally difficult to accept.
To leverage Nintendo’s strength as an integrated hardware-software business, we will not rule out the idea of offering our own hardware for new markets, but for dramatic expansion of the consumer base there, we require a product family of hardware and software with an entirely different price structure from that of the developed markets.
As you might know from today’s topics of redefining the concept of a video game platform and taking advantage of smart devices, we aim to connect with consumers who do not own Nintendo’s video game systems yet, which will play an important role in cultivating new markets. Once we can establish such a connection with consumers in these nations, we will be able to use smart devices to share our information as well as important content distribution infrastructure. We plan to take significant steps toward such a new market approach in the year 2015. I would like to share more information with you in our future IR events.
Link
In addition, we will change our approach to new markets in which we have not sufficiently expanded due to various issues such as infrastructure, consumers’ income and the legal system.
So far, we have localized our products which we distribute in developed markets, where video game markets have been firmly established, and tried to sell them in new markets. This method worked to some extent in the past, but it has recently become far more difficult to recoup our investment because of increasing hardware production costs and the cost of localizing highly sophisticated and complicated software.
Needless to say, there are core users in new markets who buy our hardware and software at the same price as in the existing markets and we really appreciate these consumers. For a large majority of consumers in the new markets, however, the current prices of hardware and software in the existing markets are generally difficult to accept.
To leverage Nintendo’s strength as an integrated hardware-software business, we will not rule out the idea of offering our own hardware for new markets, but for dramatic expansion of the consumer base there, we require a product family of hardware and software with an entirely different price structure from that of the developed markets.
As you might know from today’s topics of redefining the concept of a video game platform and taking advantage of smart devices, we aim to connect with consumers who do not own Nintendo’s video game systems yet, which will play an important role in cultivating new markets. Once we can establish such a connection with consumers in these nations, we will be able to use smart devices to share our information as well as important content distribution infrastructure. We plan to take significant steps toward such a new market approach in the year 2015. I would like to share more information with you in our future IR events.
Link
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