Some more of the interview that was translated
----- Part 1-----
Miyamoto:
I speak at the new employee seminar every year, and there's something I always say during that time. I explain what kind of company Nintendo is, and I say, "Nintendo is 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 daily about "creating a big hit," we can make it.
Itoi:
That's nice! Its straightforward.
Everyone:
(laughs)
Miyamoto:
While considering that, we carry out our usual tasks. We must always be on the lookout, asking ourselves, "Is there something that could lead to a big hit?" If we aren't all keenly aiming for it, we'll miss it. So let's make sure we don't miss it.
Itoi:
Do you say that to new employees, Mr. Miyamoto? When did you start saying that?
Miyamoto:
It's been about 10 years now.
Itoi:
That's great! Moreover, because Nintendo has been producing big hits, it's not just a dream when you say it, which makes it interesting.
Miyamoto:
Yes, exactly. It's because we aim for it that we can achieve it.
Itoi:
At Nintendo, the number 1 million isn't considered a big hit, is it?
Miyamoto:
That's right.
Itoi:
People might say, "Oh, it only sold 1 million," right? (laughs). So, in your mind, Mr. Miyamoto, roughly how many units would count as a big hit?
Miyamoto:
About 30 million.
Everyone:
(gasps)
Itoi:
That's how it is, right? (laughs). That's interesting. So, Mr. Miyamoto, when a project is in motion, you can evaluate it on that scale, like, "This one can aim for 30 million," or "This one might be around 480,000." You need to think on that scale.
Miyamoto:
Yes. While it's not good to say "all or nothing," there's an element of "it will either be this or that." For example, one often-cited case is 'Wii Fit.' Since it was themed around exercise, we conducted a demand survey in Japan alone, and the results were, "It will sell about 6 million." But there was also a possibility that it wouldn't attract any attention, and if it failed, it might sell around 300,000 worldwide. So, back then, Mr. Iwata and I discussed how much it might sell, and we said, "If it fails badly, it will sell 300,000. But if we manage to sell 1 million, we don't know how much more it could sell." The potential was that broad.
Itoi:
So, it has potential, but depending on the mood of the initial buyers, it could go either way.
Miyamoto:
That's right. If everyone is excited and says, "I want it!" then it might sell 30 million copies worldwide. But if it only sells 300,000 copies initially, it means no one wants it.
Itoi:
I see (laughs).
Miyamoto:
Since we deal with such things all the time, it's like, if you're going to do it, "Swing the bat with all your might!"
Itoi:
Swing away.
Miyamoto:
It's no good to try and adjust for a curveball.
Itoi:
Rather than going for safe and reliable profits.
Miyamoto:
Exactly. This is a delicate topic and hard to express, but there's this thing called the "break-even point." As a company matures, it starts to place more importance on the break-even point. However, I personally struggle with that mindset. For example, they might say, "If we sell a million copies, we can cover the development costs, so let's allocate 5% of that for advertising." I understand that approach, of course. But if you spend 200% on advertising, it might sell a hundred times more. So, what does the break-even point mean in that context?
Itoi:
Ah (laughs).
Miyamoto:
If you just barely exceed the break-even point and end up breaking even without a loss, what remains is just "I'm tired."
Everyone:
(laughs)
Miyamoto:
Despite working so hard, you only broke even. We aren't making various things and working just to break even. Everyone works hard daily aiming for that moment when the product sells well, becomes a big hit, and we can say, "I can't stop laughing."
Everyone:
(laughs)
Itoi:
I love that phrase! "I can't stop laughing" (laughs).
Miyamoto:
Yes, we work to achieve that kind of success, so breaking even should be considered a failure. However, it feels like everyone talks as if breaking even is acceptable.
Itoi:
Hmm, how does that fit with today's society? There are quite a few places that might consider breaking even as having gained good experience.
Miyamoto:
Is that so? But if you break even without profit, youre just tired. Those who worked with you would think, "We didn't work just to break even." That's why I don't give half-hearted praise to the team members midway through. Ultimately, the reason they feel it was worthwhile to work together is because "we sold a lot."
Itoi:
Ahh...
Miyamoto:
Even if things were tough or challenging, if the product sells a lot and becomes a topic of conversation, everyone is happy.
Itoi:
Yes, yes.
Miyamoto:
You can only build trust by repeatedly achieving that success. If you manage to do it a few times, you build a relationship where people are willing to take risks.
Itoi:
Thats true.
Miyamoto:
Therefore, everyone aims higher and works to get closer to that goal each time. Even if you dont reach it this time, you try again next time.
Itoi:
That's almost like Eikichi Yazawa (Yazawa Eikichi).
Everyone:
(laughs)
Miyamoto:
So, like, waving a towel like this (laughs).
Itoi:
A different kind of Yazawa (laughs). In other words, if you dont aim high, its "boring, right?"
Miyamoto:
Exactly. Its not interesting otherwise.
Itoi:
That simple fact tends to be forgotten. People who are just greedy are simply being greedy.
Miyamoto:
Right, and Im afraid of being seen as just greedy. Its not about being greedy; its about always thinking that way, or youll "miss it when it sprouts."
Itoi:
Ah, even though theres a chance for a big hit.
Miyamoto:
When youre preparing various things, there are moments when something catches your attention, like "Huh?" or "This might be a hit." You feel it very early on. But if youre only thinking about greed or trying to stabilize revenue, youll miss it.
Itoi:
Thats true. With just greed, you think about not taking losses first. It inevitably leads to a break-even point mindset.
Miyamoto:
Exactly. I think the most dangerous thing is missing something that could turn into a big hit. I believe one of our strengths is nurturing such potential.
Itoi:
To do that, everyone needs to be conscious of aiming for a 30 million-unit hit.
Miyamoto:
Yes, exactly.