Iwata on repeating the Japanese market expansion in the west.
Q24 You mentioned some negative observations of past DS sales in North America. How do you see the current condition?
A24 One year ago, my observation was, "the delay was obvious." However, today's observation is, "the change is starting to take place." For example, according to NPD research company in the U.S., more than 500,000 DS hardware were sold in March alone. Selling any hardware more than 500,000 in March in the U.S. is not a bad figure at all, and we should not be pessimistic. On the other hand, Japan, which traditionally has only half the market size of the Americas, as a result of successfully expanding the gaming population, was able to sell 600,000 or 700,000 DS hardware in months which were not in the holiday sales season. From such a perspective, it can be said that the U.S. is merely duplicating the good sales which have been achieved in traditional game business or before the actual gaming population expansion starts. Having said that, however, the sales in the Americas are far better than one year ago, so it is improving.
We are also noticing what the U.S. people often call "early signs." In many different places, something unprecedented is actually taking place in the U.S. People who would never talk about video games are actually discussing DS and Wii or actually touching them. These are the early symptoms for the market to change. So, we have the early signs. But the real market change has not taken place yet. When the change has occurred, the Japanese market doubled its size. I think that same thing can happen in the U.S. We have not gone that far yet but we are listening to the earth rumbling. We have come to that stage. That is why I am saying, "we really want to make it happen," and "If we can make the change to happen, Nintendo has the huge potential to make a great leap in Americas." And, because we would like to surely take this great chance, I said, "we would like to pay special attention to the U.S. market this year."
http://www.nintendo.co.jp/ir/en/library/events/070427qa/05.html
"[Our former customers] are unable to find software which they WANT to play."
"The way to solve this problem lies in how to communicate what kind of games [they CAN play]."
Satoru Iwata, Nintendo President. Only slightly paraphrased.