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And we're pleased to be joined by Reggie -- and -- is the president and chief operating officer of Nintendo of America and Reggie thanks so much for joining us to discuss the 3-D S launch in the the events of course you have here in New York City.
Discussing the 3-D S when -- jump right in two.
Yeah you're coming and there's a lot of competition other new competition that didn't exist for prior game systems and consoles out there.
Obviously got via apple in the App Store the cheap games you've got.
FaceBook free games out there.
What is it about the 3-D S and how do you get the casual -- not the the gamers themselves we know they're gonna upgrade but the casual gamer to -- down 250 bucks and then you know 3040 dollars a title.
To play the -- yes what is it about it.
There's going to be two things first the experience freely without grass and glasses which is a complete wow a brand new experience.
The second thing is the -- what differentiates us is we are an entertainment company were content based company.
So Mario -- -- Donkey Kong all of our great franchises plus all of the great franchises from companies like Activision Ubisoft then EA.
That's what's gonna differentiate us and that's why the consumer's gonna look at the device and say I have to have -- I have to have it now.
Now we talked about the price point 250 bucks some analysts say -- leaving as much as fifty dollars.
A game system on the table there.
What -- you say to shareholders about that idea to sell more in volume here to make up that difference over time are you going for more of a razor and blade model here with the games.
Here's what I find interest -- people who are familiar with the industry certainly are saying boy -- Nintendo you could have charged more.
But the mainstream consumers looking at this and saying this is a 250 dollar purchase this is up large considered purchase so we think we've -- it just right.
Right at the right price to get to the masses and make this the true first mass market 3-D device.
Well certainly being true to what shareholders and returning a significant amount of profit.
-- you talk about -- you've got more than thirty titles -- -- ever for a Nintendo game launcher system launch.
Any idea ballpark for what we could see by the holidays and when -- Mario coming here.
In -- what is Mario is coming what is -- coming as the other question I love to get.
The thirty titles between march 27 and early June is a tremendous library.
Certainly we've shown off fully functional games for legend of Zelda for Mario we've already indicated that there's a number of other Mario titles in development.
Our key is making sure that there's a pace of new launches that continues the momentum of the system.
And certainly coming three we'll talk more about games like Mario -- people Mario things that we've talked about it shown only little -- so far.
So no idea exactly you're not gonna tell us -- -- I'm not -- -- I'm not gonna say today how many titles will be for the holidays but what we -- is.
A number different publishers are saying they've got 5610.
Different games in development you total all that up it's well over hundred games in development.
There what sort of balanced DC for a demand vs supply real look at sort of a demand that we proportions and are you gonna have supplied -- meet that demand.
So here's the interesting challenge for the launch of we are similarly anticipating significant demand for the system.
What we meet that capacity.
Am I need a crystal ball be able to predict that but we are gearing up substantially for production we've already said that just between the launch in Japan which is in late February.
And by the time our fiscal ends in late march.
We'll have sold four million units so we're ramping up significantly and our goal is to meet demand for every single.
Consumer who want to device it taught us about the camera obviously we can take -- photos what about videos and a pressing question many people's minds jury through such as me I saw sneak preview of tangled in 3-D Windham movies come.
You know what -- movies -- -- having fantastic conversations with all of the studios.
And fundamentally what they see is that this is going to be the device that can get 3-D content in front of millions of consumers.
And that's a huge proposition so we'll talk more about.
3-D video content in all types of video contents.
As we Europe a launch but we know it's a big opportunity and but does -- -- record -- videos what that capability for -- according.
3-D videos itself is something that we would need to do via a system update to provide that type of application.
Our global president has said that he would like to see it happen.
That's a pretty bold statement out there and how would you get a Namibia and there was need to hook into another system like that we are where -- B cards.
Well so we've shown that there's SD card slot -- so my expectation is that you would recorded recorded down to and SD card.
And we have an SD card slot for the -- -- I would anticipate that there's a range of ways that that -- -- -- happen.
-- -- -- the 3-D S more quickly than the DS which is more of a gradual ramp up to term profitability.
No we make profit on every piece of hardware we sell itself.
In terms of ramping up we want to ramp up so that we can touch more and more consumers.
Because truly to get the experience you need to see it so that's our motivation to ramp up quickly.
But from a profitability we make money on every piece of hardware.
Now we know that.
It's backwards compatible meaning you can play the older DS games will you still produce the older DS models or are they gonna be extinct -- we will continue to produce the existing DS line.
And that's because they're so consumers today who want to spend let's say a 130 dollars for a basic system which they could do with a DS -- Or they may want to spend a 160 dollars 170 dollars for DSI excel.
So we want to continue to provide that range of price points and range of functions for the consumer.
Now the DS the best selling system in US history.
What is the challenge of replacing or expanding on that base there -- a lot of pressure on him.
You know it's a fantastic challenge and yes the existing DS is the best selling system.
In history for the US gaming market.
An interest in fact the we.
Is on a faster pace than the targets for our new 3-D S business as well.
But in the end it's all about the content it's about the experience.
If we provide that we think the sales will drive themselves and lastly talk about next system what about the next upgrade cycle everyone's always talking about is there.
Any plan for the -- for an upgrade here.
You know I love this question we haven't even launch the Nintendo 3-D S and people are asking us about the next system that will do.
You know for -- the date we launch -- system is when we start thinking about the next one.
What makes the final decision as to what is the right time comes down to do we have a -- idea that can't be delivered via the current system.
So for example when we said 3-D gaming is ready we could deliver that on the existing DS.
Hence the Nintendo three yes so when we come up with an idea that can't be delivered on the week is really -- will announce.
The next hardware system so maybe previous games can be played on the -- or something on his -- did that's 3-D S games today can't be played on the week but if we ever believe that that's a big -- certainly that could motivate us to move on to the next then as you rescued us from -- controllers that have more buttons and fingers may be rescued us from three TV with glasses at that could be the next big frontier.
All right Reggie -- -- from Nintendo America -- so much for joining us here on Fox Business thank you so much.
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