R4i Card Blog

So Nintendo always prepare for the failure, even if the accusations by the shareholders, but also stick with the profits accumulated through internal reserves. While the assets of foreign currency form have being reduced, Nintendo in September still has nearly 900 billion’s cash deposits and securities. Even this year appeared the 20 million deficits, the business will not waver.

“No one can predict the future, Man proposes, God disposes” the former president Yamauchi interpreted the Nintendo’s name like this. “Frustrated calm, proud Lengran” this is the motto of former president Yamauchi. “When you unlucky, do not panic, continue calmly efforts; when you smooth sailing, thanks to luck, not impetuous, continue to struggle.” The president of Yamauchi said to the successor.

The Nintendo which is after Lwata became president achieves the miraculous’ fast forward like as DS and WII. Because of the strong impression, the deficit report caused the controversy in the world. But in this affair, the coolest thing is Nintendo itself. Believe that the screen bigger, broader perspective, longer battery life, thinner and lighter “3DS LITE”, and the new software of there will be surprise performances, all are indifferent to the development of it.

Lwata president sticks the Nintendo equation “proposal by a combination of hardware and software to users surprised and happy”. This is the era of former president Yamauchi inherited things.

Nintendo launched that from handheld games which are surprised the world GAME and WATCH to the FC which is bringing the electronic games into the home. After that it has being caught in a tide of repression within ten years by PS. By DS and WII, Nintendo once again make the world amazed, and then successful completion of his resurrection.

Yamauchi former president used to say, “In entertainment business, if you won, you are in heaven; if you lost, you are in hell”. Entertainment industry and home appliances, automobile and other necessity industries are not the same, it needs deeply aware of that it is no matter if their produced things even do not exist. This is a very dramatic transformation’s industry. If you do not bring considerable surprise and joy, the user will be turned away; even if it is very popular, it may also soon be tired.

“Compare with Europe, the Japan is easier to form the fad, but the speed of out popular is also fast. If always the type of play against or card, it may make the users feel bored. Moreover, to draw the game for the income source may make the users who very resent with this to leave the game.” Familiar with the game community equity capital markets analyst Baishi Xing Yi says.

Community game is to maintain by fee from the depth users. Heavy toll players are only a few percent of the all players’ number, but most like these players will invest tens of thousands of yen funds in one month. For the families games, given the tenure of hardware and the days of can play a game, in fact, as entertainment the cost is very high. Then the question is whether invest the software which can attract the users.

Ultimately the success or failure decides by the software. Game software “fixed” will bring the sense of peace mind may make the world re-evaluation the families games. Adults can undertake tens of thousands of yen a month fee by themselves, but the high school students together with their parents can not. The needs of children may become the driving force of Nintendo.

The meeting of accounts in July, President Lwata declares it clear “I think it is not good of the solution that any Nintendo games launch additional content, there will be pay money to play them.”

“Just modify the data set, where the doors open, what becomes benefit for, such fees and creative work is not equivalent, the structure is completely different. Pursuits that indeed may bring the short-term gains rise, but consider the long-term relationships with customer, the way of that form charges do not match with our content.”

Community games and video games have been taken a different path to quickly spread. Users can simply exchange the game, in fact, console and PC online games, has already achieved.

DS and 3DS rub shoulders communication through the WLAN is designed such as it. Sale in December 3DS software “Mario Kart 7” will be available through the network in the community to find opponents, and together with the users around the world play the eight-line competition. PSV are on sale in December to take advantage of 3G network, try the user’s communication to a higher level.

On the other hand, the obvious features of the community game with MOBAGE and GREE is that it uses of portable phone, and the game is free. Communication between users is placed as an important motivation for this fee level. Communication promotes players to buy the charges props which can speed up the progress of the game and become strong.

Recently, the type of community games which are collecting the strong card like as the GREE’s探検ドリランド” have become the mainstream. In order to obtain powerful cards, the need for a few hundred yen lottery, this has become the main source of revenue firms. Although the beginning is free, then with the business model establishment of strengthen charge, the further intensification of competition, had to embark on the direction of incite the users’ chances.

In fact, the pre-sales performance of original DS is normal and stability. Is smooth, or depressed, expectations are different, people get the impression also will change.

After four months, the sales of DS in the world are 5.27 million, it sales 6.65 million within 7 months, at that time the evaluation of media is that sales succeed. Contrast, the sales of 3DS in the four months was 4.32 million, while in 7 months was 6.68 million. Only from the figures to say, it is comparable.

The price reduction associated with the number of July to September, the price of 3DS and DS are equivalent but have not experienced the business end war. So the “the same preliminary results as DS” should be established. Compare with the over of domestic sales’ number, it is still too early to give up the expectation of 3DS.

Based on the weekly data of MC, the sales of the DS and 3DS stacked together; you can found that there is no big difference with their development. 3DS after sales is not immediately end experience and make them produces a gap, but the lower price in 25 weeks makes the momentum change to the better. Go with the concept now, pre-performance sale of DS should be belonged to the “low profile”, because simply relying on the hardware to astound the world has been realistic.

Rapid increase in sales of the DS is on sale a year later, the second end of commercial warfare that is the beginning of the end of November 2005. In May this year the sale of “Brain Training” because of the good word of mouth gradually spreads throughout, finally the total outbreak at the end of this year. By precedent, 3DS success or failure depends on the year after the sale, which is still hesitant about four months.

Moreover, the community game is not necessarily the wind for Nintendo.

The 3D also prepared for the unique small organs. In 3D’s mainland, when you enter into the room of hidden gold or mushrooms and bricks overlap accumulation, the authorities appeared. In the state of open 3D function, you will see the brick which is originally behind the brick base surface in front of your eyes, and the props that original can not get then can a glance.

Super Mario from the original simple “three-dimensional picture to see” phase sublimation to the “physical vision is really interesting,” “not open 3D do not understand” stage. Indeed, Mario series brought to the world of wonder may not reach the degree as “Brain Exercise” and “WII Fit”, but Nintendo’s Mario in 3DS proposal finally has been achieved. And in October of this year’s accounts show Lwata president indicate that the next will bring real shocking the world “ready”.

Some people may find it difficult again as in the past have a new proposal such as the “Brain Training” and “WII Fit”, but by utilize using the Nintendo hardware and software integration and independent of age, gender and gaming experience offer for all ages advantage of the work, we will create amazing outstanding works as the goals.

This is a new proposal that make the software active use the hardware expertise. DS and WII is so popular precisely because they are the game dedicated machines, 3DS also has the possibility of again roll up the popular whirlwind and that is a smart phone can not reached.

The Nintendo console is subjected in the family console of Sony camp for 10 years, the shine popular handheld game “Pokémon” series has not been offset from the other platforms. This year, Nintendo focus on the sales of 3DS and the preparatory work with next year sale of WII new models “WII U”, therefore, it is not only in 3DS, but also in the impact of WII and DS almost has no new work. But it also suffered the impact by yen appreciation.

The exchange rate of accounts in this year April is 1 dollar to 83 yen, 1 euro to 120 yen. To the end of the period were changed to 77 yen and 106 yen. For the Nintendo which foreign selling proportion reached 80%, the Japanese yen’s appreciation in addition to damage the benefit of selling, but also reduces foreign ownership of its assets. To the middle of September 2011, the accounts resulting rate of 524 billion yen loss, foresaw the final deficit of the whole 200 billion yen.

Incidentally to say, before DS obtained great popular, the middle period of September 2005, half of the expected sales are about 176.3 billion yen. But the impact of exchange rate depreciation of the yen, the amount of profit more then initially expected, but also out of about 240 billion yen.

Currently, Nintendo has suffered many adverse shocks, for example, the psychological with the people who away from the game and enough with the game, not to drive sales of the flagship 3DS games, games less than the existing platform, 3DS prices, and appreciation of the yen.

That is to say, before suffered the impact of the smart phones and social game, the reasons of 3DS in low spirits and its performance deterioration has already possessed. Popularity of smart phones and the rise of social games may adversely affect for the Nintendo’s future development, but to say they created a dilemma so far Nintendo seems far-fetched.

In the future, Nintendo will not necessarily subject to smart phones and social games, not to say that the future is dark. Super Mario is the key to make the Nintendo resurrection.

The former president Yamauchi repeated that the important of entertainment industry is the software physical. Lwata president also take the time to express it. In other words, the entertainment industry is not the same as the hardware industry of product the necessity production. It wins not by virtue of technology, performance and function, but rather the content interesting, rules, structure, performance and other software areas.

Combine with the technology essence of that time, after the failure of the N64 and NGC which has the most powerful performance, when interview in 2007, the former president Yamauchi such self-caution. “In FC era, occasionally feel the benefits of software physical talent, with the later emergence of new developers, software constitution unfortunately disappeared. So produce this products such N64. At that time, I was very dissatisfied. When N64 launched, I think Nintendo will to die”.

3DS does not like the N64 that especially focus on the hardware processing power and graphics capabilities. Use the naked eye stereoscopic as selling point, and if say this is hardware physical, rather to say it is missing the proposal of “because it is 3D, they are able to experience the new game mode”.

In addition, missed the year end that the best time to sell entertainment products, the price of host is much more than DS, in March Japan also suffered the effect of earthquake, these complex reasons have a close contact to the sluggish of 3DS. The 3DS after sale in 2-3 months, the number is 361 million and sale for the world gaming fans and Nintendo fans, while in 4-6 months rapidly dropped to 71 million.

The rapid decline and a number of unlucky superimposed together, deepened the deterioration of performance. Anxiety on the declining trend of Nintendo， “focus on the business war in the end year, put it back the popularity track”（Lwata president’s words）, in August decided to cut to the DS equivalent of 15,000 yen. 3DS join the naked eye stereoscopic vision; strengthen communication skills, and built-in software for a cost higher than the DS, prices cut down for the profit’s oppression is enormous.

“Nintendo knows if not actual contact, three-dimensional vision is difficult to convey how great out. So why do it persist in 3D? For example, the game Saier Da which makes people has the experience of the growth process, not interesting because of 3D. Software does not convey the point of interesting.” Securities analysts Morita who familiar with the game industry is said that.

Because known as love the game’s celebrity Ljuin light in his radio show also said the same thing. “It is better hastened to change a name for 3DS, because to get 3D to do a selling point has always are limited. For example, called DS3 is also good. Lens and communications to strengthen, in fact, have added a lot of interesting things. 3D in front of too eye-catching, these is completely covered up.”

3DS starting software “Nintendo cats and dogs” is the sequel with the “Nintendo dogs” which is popular on the DS. But if add the kept cats, the content is basically the same as the past. Although it can see the cats and dogs with three-dimensional, for the players who through film and television are familiar with 3D effect, and also tried of the DS, this is no way to pull them back again.

Sale in June, “Saier Da Legend” is the heavy plate of 1998. The worldwide sales are already 1.68 million until September. As the only million works 3DS, it have no great traction for 3DS itself. Third-party software is also the multi-series works, lack of the selling point with 3D outside.

In other words, the naked eye stereoscopic view, this hardware feature is not a new selling point. This selling point did not take to convey to the user, because of that is very easy to fatigue and use 3D can be faint. Nintendo “the three-dimensional can be adjusted” like this response is attracting trouble. Nintendo operate array is not the same as the DS, 3DS did not comply with the concept that always believes of Yamauchi former president’s, and then into the alleged “physical hardware”.

What is fight with the Nintendo? Not the mobile phone, PC and other platforms of the game, but the tired psychological with let player from away the game. However, why DS and WII is great success, 3DS forwards it difficult? In the finally word, “whether have the expertise of active use the hardware or not. With the new software, it will bring surprise and new happy for users.

It is very popular but not because of the dual, touch screen functions. It is known as the expertise of hardware and it is the new type software that beyond the boundaries of the past game. The representative work is “Brain Exercise” which is on sale in May 2005 and the world total sales are more than 32 million.

The motivation of let parents to buy game for their children is that playing games can promote brain activity; meanwhile the adults also joined the ranks. Anyone can make sense of the direct operation; easy to use spare time to have fun is the reason for its popularity. On sale after six months, in Japan the sales are 70 million, the continuation of sales in December accelerate its momentum. All over the world has appeared the phenomenon of shortages one after another.

“There is no method of operation used in the past, unprecedented gaming entertainment the users.” it is such a proposal bring the surprised and happy to the users who out of the games, then pull them back. As the same reason, the WII Fit can achieve fitness with waving the remote control and activating stand on the board. But now 3DS have no such software.