Question: Amid a significantly changing external environment, including cloud gaming and 5G, what are your thoughts on the future of Nintendo’s core integrated hardware and software business?
Furukawa: I don’t think all games will move to the cloud right now, but the technology is steadily advancing. In the future, I expect that technologies such as the cloud and streaming will evolve further as a way to deliver games to consumers. We must keep up with such changes in the environment. On the other hand, I believe that our core value, the unique entertainment experiences that can only be achieved through the development of integrated hardware and software, will further increase in value. Delivering unique entertainment that only Nintendo can Financial Results Briefing for Fiscal Year Ended March 2019 Nintendo Co., Ltd. 3 create will continue to be our top priority.
Question: In the presentation, you compared sales per hardware unit for Wii and Nintendo Switch. Can you explain why Nintendo Switch sales grew so much more each year than Wii did?
Furukawa: The digital business environment surrounding Nintendo Switch has changed tremendously, compared to what it was for Wii. A multitude of download-only software titles are available for Nintendo Switch, and there is also the subscription service, Nintendo Switch Online, which is something Wii did not have. Another factor is the extremely good sales of accessories like Joy-Con and the Nintendo Switch Pro Controller.