Nintendo

Nintendo had their shareholders meeting today. User NStyles on Twitter reported on the Q&A section. Here's all the information they posted, automatically translated from Japanese with Twitter's own translation.

The question and answer session at Nintendo's general shareholders meeting has begun.

1 - I would be happy if there were more games available for people who are blind. Other game companies are aware of this trend, but Nintendo does not seem to be aware of it. If there are any initiatives, please explain.

Answer - I can't answer that question here, but we hope that many people around the world will play our games. It is important to pursue a variety of initiatives. We want it to be enjoyable for many people, not just the visually impaired.

2 - I would like to ask about measures to prevent resale of the new hardware. Last year, you said that you would prepare sufficient production to prevent resale, but I would like to hear if there are any other measures you are taking.

Answer - First, I would like to explain the current production situation. We faced a shortage of semiconductor parts and were unable to produce as we had hoped. This has now been resolved, and although there are some uncertainties about the future outlook, we do not believe there will be any major impacts at this time. The answer is the same as last year: it is important to produce a sufficient number of units to meet demand. As for other measures, we would like to do everything we can within the limits of the law, and although this will vary depending on the region.

3 - I'd like to hear your thoughts about indie software. Will they maintain their current distance, or will they become more proactive?

Answer - They create an environment that makes it easy to develop indie games, provide support and encouragement, promote indie games at events around the world, and broadcast videos about the indie world. We will continue to work to make it an attractive place for developers.

4 - Apple has announced that the next generation iPhone will be equipped with AI. I want to hear about Nintendo's AI efforts.

Answer - In the gaming industry, technology similar to AI has been used to control enemy movements, etc. Generative AI can be very creative, but it also has problems with intellectual property rights. While remaining flexible in its approach, the most important thing is to create the best possible gaming experience.

5 - Questions about the Famicom. A 40th anniversary website has been launched and a Famicom World Championship will be held, but are there any other developments?

Answer - We have created an introduction page for Famicom software where you can see the instructions and other information. You can play Famicom software on Switch Online. He also introduces Famicom software on YouTube. I am grateful that the Famicom is loved. The Nintendo World Championship Famicom World Tournament is scheduled to be released. I would like to continue doing this in the future as I believe it will lead to increased long-term corporate value.

6 - The software lineup includes a wide range of titles, including Mario and Zelda. Are there any plans to create a new IP?

Answer - I'll start by talking about the development side of things, but first I'd like to introduce the current lineup, so please take a look at this video (a digest video of the titles introduced during the Nintendo Direct. The speakers at the venue were really good, so the sound was amazing).

Takahashi-san has a big smile on his face while watching the Metroid Prime footage.

Answer 6 continued: Shinya Takahashi: "We have released a number of software titles that allow users to experience new ways of playing. We are considering various options for the future. We are considering development for both customers who have enjoyed our previous characters and customers who want to enjoy something new."

7 - Regarding full-year earnings forecasts, the previous quarter's financial results were very impressive, but the next day the stock price fell by more than 5%. This was because forecasts for the next fiscal year were not very good, but the explanation was that this was because figures for the successor model were not included. Even if the software is a huge hit, the numbers can fluctuate. The predictions don't mean much.

Answer - We recognize that earnings forecasts attract attention. Our policy for IR activities is to make announcements fairly and appropriately. Surprise is key in our business, so revealing what products we are releasing would ruin the surprise. In these respects, it is difficult to forecast earnings. I think it’s important to communicate as much as possible. Previously, we also issued mid-term forecasts, but we stopped doing this because even a slight change in the timing of software releases can make a big difference. We would like to continue to communicate with shareholders in a friendly manner.

8 - I would like to ask Mr. Miyamoto a question. I would like to ask Miyamoto what path Nintendo will take from now on. I would also like to hear about your relationship with overseas theme parks and NVIDIA.

Answer - Shiota Ko: "We worked with NVIDIA on developing the Switch chip and the system software to run games. The Switch business is still ongoing, so our relationship continues."

Shigeru Miyamoto: "A magnificent story... Where should I begin? The Nintendo Museum is being built in Uji. I think we've reached a milestone. (Nintendo) started out with karuta, then got involved in various businesses, and decided to focus on entertainment. Then we encountered the game business. There is a limit to how much we can deliver game consoles to people all over the world. So, for about 10 years now, we have been working on delivering Nintendo IP to people who don't have game consoles through mobile devices and theme parks. There will be a Donkey Kong area at Universal Studios Japan. We are also developing theme parks in Florida and Singapore. We are also working on video. I tell my employees that we need to create a reason for people to choose Nintendo. We don't make necessities, so we need to create new added value. This will make Nintendo an essential brand for families." (Applause from the audience)

9 - Regarding future production, will they produce domestically to take advantage of the weak yen and hedge risks, or will they continue to produce overseas?

Answer - Regarding the weak yen, 80% of sales are overseas, so basically, when the yen weakens, sales increase. On the other hand, procurement and labor costs are also incurred in foreign currency. For these reasons, the benefits of a weak yen are modest. Also, while holding foreign currency generates exchange gains, if the yen strengthens, a loss will occur. Regarding manufacturing, Shinji said, "We gather information on the situation in each production area and establish the optimal manufacturing system. The production volume changes with fluctuations in demand. Some products are produced in Japan. We always consult with our customers and strive to establish the optimal production system."

10 - Regarding information security measures, KADOKAWA was recently attacked and was unable to broadcast Nintendo Direct on Niconico Live Broadcasting. There was also a story about an insider leaking information on YouTube. I would like to know what kind of investments you are making and what measures you have in place regarding information security.

Answer - We have become aware of the specific issues pointed out through media reports and other sources. We work with specialist companies to diagnose information security and take various other measures. The company has introduced information security management as part of its internal information security system, and is also working on continuous education for employees.

11 - Regarding the lengthy development period for game software, I understand that the expressiveness of games has improved and it is taking time, but Mario Wonder was the first 2D Mario game in 11 years. It is important to have software that appeals to elementary and junior high school students. I appreciate the once-in-a-decade measures, but I hope they continue to release software on a consistent basis.

Answer - Currently, game development times are becoming longer and more complex. We are expanding and investing in development resources. Shinya Takahashi: "The development of game consoles makes it inevitable that development times will be prolonged. But the development environment has improved, so I think we are making efforts to shorten development times. I want to create games that are fun and entertaining in a short period of time." Takashi Tezuka: "When I talk about Mario Wonder, I was surprised that it took 11 years from the previous game. In the meantime, we've also released Mario Maker and 3D Mario. We've offered a number of Mario-related games. We are developing the game while thinking about how to make people fall in love with Nintendo. We are also considering short-term titles.

12 - I would like to hear about shareholder return policies. I am receiving dividends and the company has already split its shares, but it seems to me that the company is buying back less of its own shares than other companies.

Answer - After considering various options, we decided to split the company into 10 shares, taking into account stock price, liquidity, etc. As a result, the number of shareholders, mainly individuals, increased. The company carries out share buybacks based on factors such as the business environment and stock prices. This type of information needs to be disclosed in a timely manner, so I cannot explain it here.

13 - Regarding protection of Nintendo's IP, the company has attractive IP such as Mario, Zelda, and Pokemon. Other companies are producing products that infringe on IP rights. I'd like to hear your thoughts on such things. (Is this a question based on Palworld?)

Answer - We take appropriate action against any infringement of our intellectual property. Through playing the game, they developed an attachment to the character. It is not just about imitating the character, but the experience within the game that is important.

14 - The creators I would like to ask Miyamoto-san questions about are aging. I want him to continue making games, but I also want him to take care of his health. I'd like to know if Miyamoto-san will continue to be the central figure in game development in the future.

Answer - I think the generational change is going well. We have some excellent young developers. Miyamoto: Thank you for your concern. As expected, I am feeling a bit anxious now that I am the oldest here. I am comfortable working at the company. It's not that I don't have any experience with game development, but I have the younger generation make the games without me having to do any actual work, and I've been able to hand it over smoothly, but the people I took over from are getting older, so I would like to hand it over to someone younger. I'm heavily involved with Pikmin Bloom, so I look forward to working with you."

15 - I have also seen cases where the policy of making everyone involved with Nintendo smile has not made me smile. I have also heard stories of cosplayers of Nintendo IP sexually assaulting minors on social media. There are also victims of malicious influencers and aggregator sites. I would like to hear what kind of messages will be sent out to reduce cases of people losing their smiles.

Answer - As part of our policy of bringing smiles to people's faces through entertainment, we will not comment on individual cases here, but we will take appropriate action against any instances that are an obstacle to our policy. We do not tolerate any discrimination or harassment and will continue to work hard to ensure that no one feels uncomfortable.

16 - Regarding the weak yen and product prices, if the current exchange rate remains the same, the next-generation Switch will be very expensive. Is there a possibility that it will be priced cheaper only in Japan?

Answer - The exchange rate has fluctuated since the time the Switch was released, and there are currently price differences between Japan and overseas. We cannot comment on the next-generation console, but we are not currently considering raising the prices of current models in Japan.

17 - What are your thoughts on the small number of shares held by directors?

Answer - They are appointed regardless of the number of shares held.

18 - Regarding expanding the number of people who have access to Nintendo IP, soundtrack CDs were previously distributed through Club Nintendo. I think it may have become a gateway for people to experience new games. As a way to utilize your game assets, have you considered using a music subscription service for the soundtrack, or distributing it yourself?

Answer - We are aware that people have a strong attachment to game music, and we hold concerts and other events based on that. We believe that music is also necessary for expanding our IP, so we would like to use it in a way that will please people.

Automatically translated from thread on Twitter: https://twitter.com/NStyles/status/1806134296388018468