“Returns will be based on the effort each side makes, not based on the company size.”
☆ NintendObs Event – Nintendo and DeNA Q&A.
Question:
Please elaborate on the business models of the two companies. For instance, how will you divide total revenue of 100 between Nintendo and DeNA?
Answer:
Iwata:
I think both sides should answer this question. As I mentioned earlier, we have been saying that each company’s role will change depending on the game titles. In general, Nintendo offers its IP, and things like developing applications for smart devices and the designing or planning for those would be Nintendo’s main roles in many cases.
On the other hand, DeNA has sophisticated skills in developing back-end servers, analyzing consumer behavior or executing their daily operations extremely swiftly. So my understanding is that each side’s share would be almost equal, excluding portions related to our IP. However, I believe it is fair to allocate the return based on the investment made by each side while each side clearly shares information about the resources used for each title. So, what I mean is returns will be based on the effort each side makes, not based on the company size.
Moriyasu:
As Mr. Iwata said, regarding our game business – that is, game development and operation for smart devices – will depend on what role each party will play. Basically, we will do what each company is good at, which I mentioned earlier, and we will be sharing revenue accordingly. And from DeNA’s point of view, our focus is how much gross revenue one game can generate. As Mr. Iwata mentioned earlier, if we can create multiple hits, they should be able to generate a big positive impact on both parties’ revenues.
Iwata:
It would actually be far more constructive to discuss how we can increase our number of consumers than to discuss how we should split revenue between us. As a tremendous number of people own smart devices, our primary mission is to reach as many of them as possible. My answer might not be sufficient for analysts, but the first priority on our minds is how to increase our number of consumers.
— Nintendo Co., Ltd.
DeNA Co., Ltd.
Business and Capital Alliance Announcement
Source: Nintendo JP.
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