“We have reined in advertising expenses to a certain degree over the last few years, and this has helped to balance revenue and expenses.”
☆ NintendObs Event – Nintendo’s 2016 Annual General Meeting of Shareholders.
Question:
I would like to ask about Nintendo’s marketing strategy. I see the value in reexamining advertising expenses to bring the operating income back into the black, but with the decrease in the advertising expenses, it looks like information on some software is only reaching committed gamers. I think there is a lot of hidden, interesting software for people who are about to start gaming, such as Tokyo Mirage Sessions #FE. I would really like to see an effort to make these widely known. What do you think about that?
Answer:
Kimishima:
We have been reviewing advertising expenses from the point of view of balancing revenue and expenses, and of whether the spending level is appropriate in proportion to our sales. As a result, we have reined in advertising expenses to a certain degree over the last few years, and this has helped to balance revenue and expenses.
However, the whole point of advertising is to convey information appropriately to consumers, so we cannot simply cut spending. With the progress of technology, advertising media and methods now go beyond television ads to include many different options. Those who come into contact with games for the first time are not that interested to start with, so for those types of people, I agree with you that we need to carefully consider our timing and approach. We intend to come up with detailed plans on what message to convey to what type of consumers with what kind of timing, and push this forward with an eye to cost-effectiveness as well.
— The 76th Annual General Meeting of Shareholders
Source: Nintendo JP.
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