Nintendo has a large pressence and huge console marketshare in Japan, North America and most of Western Europe. However, there are numerous developing countries in Asia, South America and the Middle-East where they have barely any official presence, something CEO Satoru Iwata took some time to address to investors.
“It is true that not only those in Japan and the other developed countries in North America and Europe but also those in several countries with rapid economic development can afford more entertainment than before,” says Iwata. “And it is vital for our basic strategy of ‘gaming population expansion’ that more people in such countries as well as in Japan, North America and Europe, enjoy our video games and feel convinced to pay for them.”
“However, a large part of Nintendo’s reluctance to release products in certain regions is because of high piracy. Nintendo has traditionally been one of the staunchest gaming companies when it comes to defending its IP against pirates, so it’s sure to proceed cautiously into these regions.”
“Some in newly-emerging countries do not have an established custom of paying for software,” Iwata added. “We do wonder if the traditional business model of the video game industry will succeed in such regions. If we do totally different business there with cheaper services and software than developed countries, people in developed countries would have negative feelings toward us and say, ‘why do we have to pay much more than those playing video games elsewhere ‘ This could be one of the biggest problems for us that would need to be solved. Needless to say, popularizing our video games throughout newly-emerging countries is indispensable for Nintendo’s growth in the mid-and-long term. We will take enough time to work on it.”
Source: Nintendo.co.jp
