Here's some highlights from the #Nintendo results call.
Q: Why guidance assumes units fall?
A: Last year had AC and WFH, so expecting down YoY in 1H as a result. Not assuming any WFH benefits
Conversation
A: Hardware guidance of 25.5m is based on parts known and hence can produce. If could produce more then will do so given momentum is strong
Replying to
Q: How are active user trends for Switch?
A: When AC was released it increased and then tapered down, but holiday season drove active users to record level, went down a little bit in new year but with MHR etc titles active has returned to high levels #Nintendo
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Q: What assumptions making for outlook?
A: AC drove growth last year which continued into 4Q. Noted that volumes for 1st party titles ex AC were up YoY in 4Q. First time AC users tend to buy other 1st party titles.
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A: Super Mario 3D World went very well in 4Q along with other titles. For users who bought Switch in holiday season the next game title is bought digitally. The option of purchasing digital has become the norm
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Q: In what areas is the increased R&D being spent?
A: We are still mid way through Switch cycle, so software plus outsourcing costs are increasing for switch which is the main factor. Also cost per title is increasing and need a certain level of scale.
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A: Investing in online as well. Although mid way through Switch cycle it is necessary to invest in the next platform, where hardware and software integrated will continue.
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Q: How is demand in EU/US?
A: Overall not see much change based on region - strong demand continues. EU has the hardest temporary impact in the shortage of product on shelves from transport/logistics issues related to COVID.
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Q: Where is there further penetration for Switch?
A: About 20% of Switch purchased is the second device in the household, expect that to continue to grow. Also seeing nice growth in Asia which has very good room for growth. EU given its scale has room to capture growth
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Q: China situation?
A: Had Mario Tennis event for Chinese New Year, Switch volumes in 4Q were up YoY, continue to work to capture sales growth.
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There there other financial questions that I have skipped. Hope that helps anyway. That's it #Nintendo
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