Satoru Iwata on Digital Gaming, Free-to-Play and Subscriptions

During the Nintendo investor Question & Answer session, Satoru Iwata was asked about the company's digital approach.

Nintendo have highlighted the success and strength of their download and online software sales in the last six months in particular. Iwata confirmed that the company are "seeing changes that would have been inconceivable, say, about a decade ago" and that around 10% of Japanese consumers are opting for digital releases.

Satoru Iwata feels the digital ratio will "change dramatically in two or three years' time".

He noted that digital distribution alongside traditional retail is the company's first steps into the digital domain. Nintendo aren't aiming to change the existing retail approach but might have other business models in the future.

Free-to-play, which has been mentioned in previous occasions, could be developed by Nintendo for lower cost titles or those that might require a monthly subscription.

Because it's easier to make payments on Nintendo Wii U and 3DS, "it is now a question of putting these ideas in action". It is a case of when as "Nintendo will make new offers that go well beyond simply replacing packaged software with digital software", Iwata confirmed.

What are your thoughts on Nintendo's digital approaches, free-to-play and subscription models?