“How the game is played connects to the future of the IP.”
☆ NintendObs Event – Nintendo FY3/2016 Q&A.
Question:
About the company’s KPI (Key Performance Indicator). Am I correct in understanding that in the company’s smart device business, the number of daily active users, or DAU, is the most important indicator?
Answer:
Kimishima:
I think that there are lots of ways to evaluate it, but when a user plays continuously it supports the fact that the application has a lot of appeal. This is connected to DAU, so it is important to see how much we can raise the absolute value of DAU, but the rate of continued use is important as well. If the rate of continued use increases, naturally, the DAU will increase as well, so we are keeping a close eye on that. We believe that as this increases, though it will vary by application, revenue from in-app purchases will change as well.
Question:
What indicators will be important when developing the same IP for both smart devices and dedicated video game systems?
Answer:
Kimishima:
I think that for dedicated video game systems, the number of units purchased is definitely the most important. Other than the number purchased, the other important thing is how the game is being played after it has been purchased. I do not mean this in the sense of how the game is rated, but rather that how the game is played connects to the future of the IP. Therefore, we believe that in addition to the number of units purchased, the activity numbers including hardware activity, and how much the game continues to be played are both important factors as well. I think that this is the same for both dedicated video game systems and smart devices.
— Financial Results Briefing for Fiscal Year Ended March 2016
Source: Nintendo JP.
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