Machine translation, could be wrong tho
It's Google translate. Don't use that for translation anymore. It's terrible. AI does a better job:
Miyamoto: Every year, I speak at the new employee seminar, and there’s something I always say. When it comes to what kind of company Nintendo is, I say, “It’s a company supported by hit products.”
Itoi: Oh.
Miyamoto: If we have one big hit every three to five years, we can manage. In that sense, if all employees think only about “creating a big hit” every day, we can make it work.
Itoi: That’s great! (laughs) It’s so clear and straightforward.
Everyone: (laughs)
Miyamoto: While keeping that in mind, we go about our daily tasks. We should always be on the lookout for something that could lead to a big hit, so we don’t miss any opportunities.
Itoi: Do you say this to new employees, Miyamoto-san? Since when have you been saying it?
Miyamoto: For about 10 years now.
Itoi: That’s great! And since Nintendo actually produces big hits, it’s not just a dream, which makes it interesting.
Miyamoto: Exactly. It’s because we’re aiming for it that it happens.
Itoi: At Nintendo, a figure like one million units isn’t considered a big hit, right?
Miyamoto: That’s right.
Itoi: It’s like, “Oh, it only sold a million?” (laughs). So, in your mind, how many units roughly constitute a big hit?
Miyamoto: About 30 million.
Everyone: (gasps)
Itoi: That’s what I thought (laughs). That’s interesting. So, when a project is in motion, you can roughly gauge its potential, like “This could hit 30 million” or “This might be around 480,000,” right? You have to think on that scale.
Miyamoto: Yes. It’s not exactly a gamble, but there’s a sense of it being one way or the other. For example, a common example I use is
Wii Fit. Since it was themed around exercise, market research in Japan suggested it could sell around 6 million units. But there was also the possibility it might not be noticed at all, and if it failed, it might only sell around 300,000 units worldwide. So, back then, I discussed with Iwata-san how many units it might sell. The minimum failure would be 300,000 units. But if it managed to sell a million, then we wouldn’t know how much it could sell beyond that. The potential range was that wide.
Itoi: So, it had potential, but its success depended on the mood of the initial buyers.
Miyamoto: That’s right. If everyone wants it, it might sell 30 million copies worldwide. But if it only sells 300,000 at first, no one will want it.
Itoi: I see (laughs).
Miyamoto: We’ve been dealing with such things for a long time, so if we’re going to do it, we should swing the bat with all our might.
Itoi: Swing away, then.
Miyamoto: Don’t try to adjust to curveballs.
Itoi: Rather than going for safe profits.
Miyamoto: Exactly. This is a subtle topic, so it’s hard to express, but there’s something called the break-even point. As companies become more corporate, they start to value the break-even point. But I really dislike that way of thinking. For example, if selling 1 million copies covers the development costs, they say to spend 5% on advertising. I understand that. But if you spend 200% on advertising, you might sell 100 times more. So, what is the break-even point then?
Itoi: Ah (laughs).
Miyamoto: If you barely exceed the break-even point and end up breaking even, all that’s left is “I’m tired.”
Everyone: (Laughs)
Miyamoto: We work hard not just to break even, but to sell a lot, make a big hit, and say, "I can’t stop laughing."
Everyone: (Laughs)
Miyamoto: “Well, that’s why we’re working, so if we just break even, we should consider it a failure. But somehow, everyone talks as if breaking even is the goal.”
Itoi: “Hmm, in today’s society, how would that be? I think many people would consider breaking even a good experience.”
Miyamoto: “Is that so? But if we just break even without profit, we’re just tired. We didn’t work for that, and the people working with us would feel the same. That’s why I don’t give half-hearted praise to my team. It’s because we feel good working together when we sell a lot.”
Itoi: “Ah, I see.”
Miyamoto: “Even if it was tough, if we sell a lot and it becomes a topic, everyone is happy.”
Itoi: “Yes, yes.”
Miyamoto: “By repeating that, we build trust, and if we do it several times, we can ask for unreasonable things. So, everyone aims high and tries to get closer each time. Even if we don’t reach it this time, we’ll try again next time!”
Itoi: That’s almost like Eikichi Yazawa (a famous Japanese rock musician).
Everyone: (laughs)
Miyamoto: Then, let’s wave the towel like this (laughs).
Itoi: A different kind of Eikichi Yazawa (laughs). In other words, if you don’t aim high, it’s boring, right?
Miyamoto: Exactly. It’s not interesting otherwise.
Itoi: Surprisingly, that simple idea is often forgotten. People who are just greedy are only being greedy.
Miyamoto: Yes, yes. I’m afraid of being seen as just greedy. It’s not about being greedy; if you don’t always think that way, you’ll miss opportunities when they arise.
Itoi: Ah, even though there’s a chance for a big hit.
Miyamoto: While preparing various things, there are moments when you think, “Huh? This might be a hit.” You can sense those things very early on. But if you only think about it in terms of greed or stabilizing revenue, you’ll miss it.
Itoi: That’s right. If you’re only thinking about greed, you’ll prioritize not losing money. It inevitably leads to a break-even point mindset.
Miyamoto: Exactly. Missing out on something that could be a hit is the most dangerous thing, I think. One of our strengths is that we’ve been able to nurture those opportunities well.
Itoi: For that, everyone needs to be aware of aiming for a 30 million unit hit.
Miyamoto: That’s right.
