In addition, we will change our approach to new markets in which we have not sufficiently expanded due to various issues such as infrastructure, consumers income and the legal system.
So far, we have localized our products which we distribute in developed markets, where video game markets have been firmly established, and tried to sell them in new markets. This method worked to some extent in the past, but it has recently become far more difficult to recoup our investment because of increasing hardware production costs and the cost of localizing highly sophisticated and complicated software.
Needless to say, there are core users in new markets who buy our hardware and software at the same price as in the existing markets and we really appreciate these consumers. For a large majority of consumers in the new markets, however, the current prices of hardware and software in the existing markets are generally difficult to accept.
To leverage Nintendos strength as an integrated hardware-software business, we will not rule out the idea of offering our own hardware for new markets, but for dramatic expansion of the consumer base there, we require a product family of hardware and software with an entirely different price structure from that of the developed markets.