The point is that game software sales increased due to the release of the movie . According to Famitsu’s data, GW seems to have boosted Mario-related games and Smash Bros.
　According to the Sony Group’s explanation, there were cases in which game software sales increased due to the TV drama “THE LAST OF US” being aired. To be honest, I could not have predicted in advance that the sales of game software would increase in such a wide range.

　I don’t follow movie companies, and I don’t specialize in the movie industry, so I think I failed to predict this big hit and synergy. I would like to reflect on this point.
　It can be said that the result made me keenly aware that there are still many phenomena that have not been elucidated, and that there is a need to think about it. In addition, considering the increase in sales due to movies, I think that the story that Nintendo explained in the previous financial results that the game will not sell due to the recovery from the restart was still wrong.
　The act of going to the movies is just a restart, and if a restart hinders game sales, it’s hard to imagine such a synergistic effect.

　As for movies, as explained by Nintendo’s President Furukawa at the financial results briefing, we can expect a long-term impact.
　If it becomes such a hit, it is very likely that a sequel will be produced, and when the sequel is released, this work will be broadcast on TV and will be available on subscription services. We should be able to expect revenue contribution from secondary usage for a considerable period of time.
　It was previously commented that Capcom’s Street Fighter movie will still have secondary usage revenue in 2020. “The Super Mario Bros. Movie”, which has become such a hit, will generate large profits from secondary use and will continue to contribute over the long term.

　Another representative director, Shigeru Miyamoto, made a statement in a media interview to the effect that the movie became popular because it was criticized by the general public for the low evaluation of the film by critics.
　The author is also saying the same thing as I often pointed out that the name recognition increases when criticized.

　Nintendo is often criticized for all sorts of things, but humans are inherently more risk-aware, so bad news is probably the source of such hits.
　Mr. Miyamoto has created an unparalleled track record in the game industry, but I think that in the US film industry he is rated as an amateur when it comes to the film industry. The fact that the critics were unable to honestly evaluate the fact that it created a mega-hit of over 160 billion yen probably contributed to the rise in the popularity of the movie. The next thing to talk about is “The Legend of Zelda: Tears of the Kingdom”

　, which was released on May 12th . 　Nintendo announced on the evening of May 17 that it had sold over 10 million units in the first three days of its release. This number was a surprise, as it was comparable to the two versions of “Pokemon Scarlet Violet”. 　The previous work “The Legend of Zelda: Breath of the Wild” was a multi-development of Wii U and Switch, but Wii U was a failure hardware, and Switch was a launch title, so it was not possible to compare the initial movement, but it became a long run. The cumulative total is close to 30 million.

　Although expectations were high in advance for this work as well, it is a sequel, the hardware is on a downward slope, and it is a type of game with difficult operability, so I do not expect it to reach this level at the beginning. I didn’t.

　Nintendo is aiming for sales of 30 million units, the same as “The Legend of Zelda: Breath of the Wild” , and since the influence of Mario movies also contributes to the increase in sales of Nintendo titles, sales of 20 million units this term are expected to be I think it’s a good target.

　Also, the Legend of Zelda Tears of the Kingdom has many videos posted on SNS, etc., but I think that the content has more craft elements than the story. It has become a game with a very high degree of freedom, and tanks, bombers, and even robots are made. I have the impression that I can only admire the courage to incorporate a system that could destroy such a world view.

　It would be a completely different approach than the SIE in the United States, which focuses only on criticism. I would like to pay tribute to Nintendo for making games that make users smile.

　Well, let’s talk about Sony’s financial results in the second half (Nintendo hopes next month).
　The Sony Group announced its financial results on April 28, and the game business ended with an increase in sales and a decrease in profit. There are various reasons, but basically the software is not selling well.

　Annual sales have fallen from 300 million units in the previous year to 264 million units, and it seems that the decrease in PS4 cannot be compensated for by the increase in PS5.
　Also, the add-ons that Jim Ryan boasted at last year’s business briefing have continued to stagnate in real terms, excluding the impact of exchange rates. I think it was a superficial analysis that users moved to add-ons because the full game didn’t sell well, but as an author who knows the reality that Japan didn’t move to smartphone games, it’s another factor. I think it’s better to think

　And the explanation of the Sony Group’s financial results this time is as follows:

(1) The level of distribution inventory (inventory on the retailer side, sold by the Sony Group) at the end of March 2023 is higher than appropriate. It is scheduled to be normalized at the end of March 2024, and inventory will be accumulated this summer (this inventory probably refers to the Sony Group
)
. Although the number of sales is higher than in the early days of PSVR, Toyo Securities did not expect a lot of sales this term and aimed to spread it by expanding the lineup, which was quite

　difficult for Toyo Securities to interpret.

　(1) is frankly surprising.
　In the fourth quarter, the number of PS5 units sold (arrival) was 6.3 million units, the highest ever for the fourth quarter, and the sell-through in Japan exceeded 800,000 units (Famitsu survey), so the inventory level is below the appropriate level. I was thinking.
　However, according to the Sony Group’s view, the inventory level exceeds the appropriate level. I’d like to have the details next month, but at the business briefing held on May 24, it was said that the sell-through in the fourth quarter was 5 million units. If so, the distribution inventory is less than 2 million units.

　I don’t think this is a lot, but aside from that, Japan’s sell-through during the same period was over 800,000, so Japan’s share is about 16%.
　In the past, I have pointed out that Japan’s quota was around 8% when production was difficult, and from the standpoint that I have come from the position that the supply was too small for Japan’s ability, I think this assertion was appropriate.
　We believe that supply was too low and that more supply led to more people buying, which helped support sales this quarter.

　Mr. Jim Ryan recently mentioned the Japanese market, but I think that the content is out of touch with the actual feelings of Japanese users. If I were to make such a comment now, I should have done so immediately when I pointed it out. Users remember SIE’s cold treatment so well that it will affect them later.

　(2) was also surprising. If 25 million units are to be sold, the software must be reversed. It may be just a conservative view, but it may be watching the trend of FF16. I would like to refer to this point later.

　Regarding (3) PSVR2, there was no mention of it at the financial results briefing, and at the hearing, it was an ordinary explanation of expanding the software lineup (it was revealed at the business briefing that it was about 550,000 units).
　However, from the standpoint of watching console sales for a long time, I think it’s clear that third-party AAA hardware won’t win or lose. Nevertheless, isn’t the software lineup an extremely inadequate description?
　There has never been a case where a game machine that failed on the first try recovered later. Perhaps PSVR 2 will be washed away by the water as it is (PSVR 2 is a peripheral device).

　Having a very aggressive plan for hardware sales and low growth for software is an unprecedented way of planning.
　This may be due to the fact that PS5 software sales are sluggish, but if that happens, the theory that the current software is selling hardware will not hold true.
　I think that the design and storage cost issues are in a situation that needs to be dealt with as soon as possible. The explanation of the business briefing on May 24th will be next month, but this time there was a mention of design. For SIE, the design of PS5 is excellent, but regardless of whether it is right or wrong, it is a great pleasure for Toyo Securities that the design was mentioned.