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E3: Financial Analyst Briefing

Online Stock Market Trading Los Angeles' Biltmore Hotel was home to Nintendo's E3 briefing for financial analysts this morning. Unlike yesterdays media briefing, the focus here was more on Nintendo's strategies for competition, and how it plans to sell games and systems rather than the actual games and systems. Here's a recap.

• According to George Harrison, Nintendo plans to focus purely on games in the next-generation, and is not make multi-function media and entertainment device to compete with the Xbox 360 and PlayStation 3.
  
• Nintendo admitted that it would be giving up on part of entertainment in the living room, but believes that by doing so they will acquire a significant savings in next-generation development. Nintendo plans to use the savings to put forth additional development, as well as additional marketing.
  
• Harrison said that Nintendo is still moving towards the future with online and Wi-Fi gaming, such as its free Wi-Fi gaming service for the DS.
  
• It was confirmed that Nintendo is working with unspecified partners to create a nationwide network of Nintendo DS hotspots in the United States.
  
• Harrison said that it is important to cater to DS users because the DS has been a strong seller for Nintendo, having sold 5 million units worldwide since launch. Harrison noted that the DS has sold twice as many units worldwide as the PSP from Sony.
  
• The success of Nintendogs in Japan was mentioned. 400,000 units in less than a month, and 100,000 of those sales associated with the purchase of a Nintendo DS.
  
• Reggie Fils-Aime joined Harrison, and the two mentioned the Game Boy Micro. Harrison reiterated that the Game Boy Micro is smaller than Apple's iPod Mini, and that the design of the Game Boy Micro could make it an ideal "fashion item," espically with the changeable faceplates for the Game Boy Micro.
  
• Reggie said that Nintendo has high expectations for two upcoming GameCube games: The Legend of Zelda: Twilight Princess, and Pokmon XD: Gale of Darkness.
  
• Reggie said that Nintendo has been aggressive and outspoken in protecting its intellectual property, even from past-generation games. Now, Nintendo plans to make a return on their efforts through the game-download service of the Revolution, which will include a large portion of Nintendo's library all the way back to the Nintendo Entertainment System.

The jump soundly beat Wall Street estimates. Analysts polled by Thomson Financial had expected an increase of 7.9 percent. Total sales for the month ended April 29 totaled $207.8 million, up 30 percent from $159.4 million in April 2005. For the year through the end of April, store sales were up 6 percent from last year, while net sales increased 20 percent to $657.3 million from $546. ago period.

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