Find out what Nintendo's CEO had to say to investors the other day.
financial news services Bloomberg and Reuters, as reported on Nintendo's reasoning behind the 3DS February 26, 2011 release date and price of ¥ 25,000 points. The reports were to be held by investors Q & A CEO Satoru Iwata at the Conference 2010 Nintendo press conference on Wednesday.
Nintendo has since posted a transcript of the Q & A, which allows us to get a closer look at Iwata comments on the subject, which came in response to a question in two parts on why the system will fail the busy period of Christmas and what Nintendo thinks the system is more expensive than the Wii.
The first, in the area of release time frame, Iwata said that Nintendo originally held that a release later this year would be preferred, and set its earnings outlook and subsequent plans based on that. "We have made progress with its current development, and we are currently preparing for mass production, but we decided it would be difficult to spot the appropriate number for a release later this year. In addition, about the level of polish the product, we thought that by setting the release date of what was announced we would be able to deliver it to levels we have found satisfactory. "
Iwata noted that when it comes to console gaming business, rather than thinking only to the profit of the fiscal year, when planning a period of release time, the most important thing is to start off the platform in a healthy way, in serve as the main activity of Nintendo for some time. "We decided it would be preferable to provide both a highly polished and ready for satisfactory quantity, so as not to cause confusion in the market. It 's true that this has caused negative effects on earnings forecasts this year."
As for price, Iwata said first compared the questioner for the Wii, saying that Nintendo does not consider it appropriate to make comparisons like "The price ratio between the console and portable x was up to now, so it should stay the same to 3DS.
On the same price, he said, "Of course, the lower the price, the better. However, considering a number of factors such as costs of materials, the health of the business platform, and the reaction E3 post on what value would be felt by ' hardware once the functionality was understood, we felt that this price would be inclusive. "
Investors seem not to take too large for the time of issue of Nintendo, leading to large drops in the price of Nintendo shares after the announcement date.
