a majority of our revenue comes from game sale, so it is very important that we concentrate on developing games with the most resent advances in all integral aspects of game production, such as audio, video, and special effects. Product Expansion While Through the N64 and the development of faster machines, Nintendo will at least maintain its position in the videogame market. We have to look forward to where the market is going and what will be necessary to be successful there. With this in mind, we have developed three new services and markets to enter into: Interactive Channel Service, Gaming Centers and untapped demographic markets. Nintendo's Gaming World Channel will be a fully interactive premium cable station offered through local cable service. It will allow subscribers to try out the a broad range of games including demos of the latest release and soon to be released games. With the advances made in mutli-band technology, subscribers will be able to play networked games versus another of the other users. This channel will be marketed like that of an HBO or CNN, based on a monthly subscription. We will tier the pricing to provide users different packages. The Basic package will include the broad games with some of the demos and network play. While the Premium package will allow for all of the services. Nintendo's Gaming Worlds will showcase the latest in technology from interactive theme rides, internet cafes directly linked to Nintendo's web site, games stations for playing Nintendo Games, restaurants, shops, and most importantly demo versions of the Nintendo Channel and its hardware. Customers will be able to purchase a variety of passes, from all day to half day or even hourly. Initially we will build in ten major cities, five domestic and five internationally. Specific locations are projected domestically to be New York City, San Francisco, ...
