WEBVTT - SuperData's Van Dreunen on Nintendo: Stick to Content (Audio)

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<v Speaker 1>Business flash. You're listening to Taking Stock with Kathleen Hay

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<v Speaker 1>and Pim Fox on Bluebird Radio Nintendo shares plunging today

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<v Speaker 1>by the most since after the company said late Friday

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<v Speaker 1>that the financial benefits from the worldwide hit Pokemon Go

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<v Speaker 1>will be limited. And of course this correction comes after

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<v Speaker 1>Pokemon goes released almost doubled Nintendo's stock through Friday's Clothes.

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<v Speaker 1>Joining us now is Yost von Joyning. He is CEO

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<v Speaker 1>of Super Data Research, to talk about what this means

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<v Speaker 1>for Nintendo and more broadly, what Pokemon means for the

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<v Speaker 1>gaming industry. Yo, welcome to the show. Thanks for having

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<v Speaker 1>me so U. They put out the news, they put

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<v Speaker 1>it out ahead of their earnings report. Is this a

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<v Speaker 1>one day wonder? This sell off? What does this mean

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<v Speaker 1>over the overtime? So the I think it's a sort

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<v Speaker 1>of a damage control for a mistake that was not there,

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<v Speaker 1>not there. I think that the investor community has been

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<v Speaker 1>very excited to see Nintendo sort of move into mobile games,

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<v Speaker 1>which is everything that alludes to, but it's not going

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<v Speaker 1>to be that quickly for them, So it's a correction.

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<v Speaker 1>If nothing else. That is that is of all times,

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<v Speaker 1>mobile gaming in general has become this big market that

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<v Speaker 1>everybody has to respond to, and Pokemon Go is that

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<v Speaker 1>sort of obvious answer. At the same time, you know,

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<v Speaker 1>it's not going to be that easy even for Nintendo

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<v Speaker 1>to pull that off. Can you give us an idea

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<v Speaker 1>of how much Pokemon Go is making per day? Yeah,

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<v Speaker 1>so it's uh, in terms of install and earnings, we're

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<v Speaker 1>already registering a decline. Uh. Then we were noticing a

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<v Speaker 1>clear peak after last week. And so lifetime earnings across

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<v Speaker 1>platform so far in our end are about seventy five

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<v Speaker 1>million dollars. And then if you add that all up

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<v Speaker 1>and sort of running through the numbers, you know, after

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<v Speaker 1>platform fees for Apple after you know, and then it

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<v Speaker 1>really gets its share of what it owns of the

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<v Speaker 1>Pokemon company, you know, not much left and that certainly

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<v Speaker 1>won't really move the needle for a company that big. Well, uh,

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<v Speaker 1>what will move the needle then? For a company is big,

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<v Speaker 1>it is, It is big. It is solid. But the

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<v Speaker 1>growth of the gaming industry, as you have pointed out

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<v Speaker 1>in a recent article, has has seemed to slown a bit.

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<v Speaker 1>It's in some areas it's better than others as usual,

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<v Speaker 1>So the game's industry is a little bit of a

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<v Speaker 1>mosaic of different pockets of growth. Right where we see,

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<v Speaker 1>for instance, the councile market doing pretty well, the PC

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<v Speaker 1>market is a little bit more flat, and then the

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<v Speaker 1>mobile market has been upuntil at least this year, been

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<v Speaker 1>delivering double digit year for year growth. So that's all

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<v Speaker 1>very good and great, right, So the question is, in general,

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<v Speaker 1>how are these legacy companies, these big pump companies like Activision,

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<v Speaker 1>Electronic Arts, and also hardware providers and platforms like Nintendo.

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<v Speaker 1>How are they adjusting to this new market. So the

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<v Speaker 1>hard part for them is to kind of figure out,

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<v Speaker 1>like what do we do? Do we become you know,

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<v Speaker 1>do we go after the mobile hardware bit where we've

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<v Speaker 1>done really well traditionally by vertically integrating where we have

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<v Speaker 1>strong third party relationships and then build our platform for there.

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<v Speaker 1>Or do we say, well, we're gonna go sort of

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<v Speaker 1>the Sega route where we take our franchises and our

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<v Speaker 1>i p our intellectual property and then try to license

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<v Speaker 1>it out to others. And so this is a really

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<v Speaker 1>interesting sort of intersection for them to kind of go.

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<v Speaker 1>The way that they could resolve this is to stay

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<v Speaker 1>true to their own which is to make solid games,

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<v Speaker 1>and then from there I think that they can command

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<v Speaker 1>a lot of control. But what ultimately sells a lot

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<v Speaker 1>of this stuff is really strong content, and that's what

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<v Speaker 1>Nintendo itself. You know, what does super data research do

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<v Speaker 1>and what can it tell us about artificial or virtual reality?

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<v Speaker 1>That's a good question. So the what we do is

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<v Speaker 1>we are a market researcher that looks at what we

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<v Speaker 1>call personal media. UM. We collect spending data on forty

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<v Speaker 1>eight million digital gamers for instance, months and months, and

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<v Speaker 1>that gives us an insight into, you know, the sort

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<v Speaker 1>of digital distribution markets that lives on the entertainment side.

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<v Speaker 1>Entertainment in general has shifted away from a product based model,

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<v Speaker 1>and so we service ponese both financial and publishing for instance,

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<v Speaker 1>that focus on these markets. UM. And then when it

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<v Speaker 1>comes to a R and VR, that's really the sort

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<v Speaker 1>of next thing, right, So there's a lot of talk

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<v Speaker 1>about how virtual reality is going to be the next

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<v Speaker 1>platform after we've seen all these other ones come around. UM,

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<v Speaker 1>We've to be very fair over the last year that

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<v Speaker 1>we've been really covering this. It's the uh you know

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<v Speaker 1>that down We have to cut our forecast down twice

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<v Speaker 1>because there's a huge amount of noise as a usual

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<v Speaker 1>amount of enthusiasm. Right, there's a sort of this expectation

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<v Speaker 1>that VR will grow, that the oculus for Facebook for instance,

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<v Speaker 1>will you know, so show us the same numbers as

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<v Speaker 1>Mobile has for Apple. Um, that's not going to happen

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<v Speaker 1>anytime soon. There's going to be three to five year

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<v Speaker 1>period in which companies really sort out their third party relationships,

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<v Speaker 1>where we have sort of some innovative content. You know,

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<v Speaker 1>what's going to be the angry birds of VR for instance,

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<v Speaker 1>Like all those questions still have to be answered on

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<v Speaker 1>top of you know, it's it's hardware, so it has

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<v Speaker 1>to be manufactured, it has to be you know, shipped

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<v Speaker 1>for one in to the next and so on. Um.

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<v Speaker 1>You know, for us, we see Sony Prince and do

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<v Speaker 1>really well because it has the PlayStation v R which

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<v Speaker 1>sort of seamss these clicks into its assistance install base.

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<v Speaker 1>But some of the other experiments out there, like the

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<v Speaker 1>HTC five and the Auction is riff. You know, those

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<v Speaker 1>are some higher end experiences on the PC with a

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<v Speaker 1>more narrow market. Right, It's a it's a bit more

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<v Speaker 1>difficult and the actual technology is a little less successible.

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<v Speaker 1>Just you know, you you do seemly quite fired up

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<v Speaker 1>about this whole question of Pokemon Go and whether or

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<v Speaker 1>not it really is authentically a are authentically uh you know,

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<v Speaker 1>augmented reality, but you say it can be the gateway

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<v Speaker 1>drug if people understand what it actually is. I want

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<v Speaker 1>to broaden ou blends to people beyond gamers who follow

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<v Speaker 1>all the stuff you follow. Who is it going to

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<v Speaker 1>draw in? What do you have to do to get

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<v Speaker 1>a broader universe now into this market so the sales

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<v Speaker 1>can keep growing, so companies like Nintendo can boost their

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<v Speaker 1>share price. Um so for a R to do well,

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<v Speaker 1>we need you know, so if we're talking to about

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<v Speaker 1>a new platform, we need a killer application, right and

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<v Speaker 1>so this is where the equationman then Pokemon go so

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<v Speaker 1>so obvious to many people saying, well here we are right.

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<v Speaker 1>So here it is that we can now figure out

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<v Speaker 1>a way to make obvious to a mainstream, a large

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<v Speaker 1>mainstream audience, what it is that augmented reality actually can

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<v Speaker 1>do for us. So the sort of silver lining for

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<v Speaker 1>me is that over time, other companies will take this

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<v Speaker 1>instance and say, you know what, we're going to build

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<v Speaker 1>something in a artist just like it, because clearly there's

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<v Speaker 1>demand for it. You've got to leave it there. Thank

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<v Speaker 1>you very much, yost Van Dyinen. He is the chief

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<v Speaker 1>executive of Super Data Research, telling us about a Nintendo

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<v Speaker 1>the shares are down nearly eighteen. This is Bloomberg coming

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<v Speaker 1>up the CEO of the pan Co Didien when I

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<v Speaker 1>talk to us about the fast casual spaces, company's outlook

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<v Speaker 1>and some new tasty product offerings in development. That's coming

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<v Speaker 1>up on taking stock, Bloomberg Radio