Nintendo Takes Mobile More Seriously, Considers New Business Structure
January 20, 2014 7:47 PM
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This comes after revisions to its sales and profit through March 2014
Nintendo's new year hasn't been too forgiving, as the company was forced to
revise its sales and profit expectations
through March. With hard times ahead, the company is realizing that it needs to hop on the mobile bandwagon if it wants to stay alive.
, Nintendo is considering a new business structure that includes launching games on smart devices such as tablets and smartphones.
“We are thinking about a new business structure,” said Satoru Iwata, Nintendo CEO. “Given the expansion of smart devices, we are naturally studying how smart devices can be used to grow the game-player business. It’s not as simple as enabling Mario to move on a smartphone.”
This could be a good move for Nintendo, considering hardcore console gamers tend to stick with Sony's PlayStation or Microsoft's Xbox consoles while more casual gamers have flocked to mobile devices -- not to mention that almost everyone now carries at least a smartphone on their person.
Nintendo has also been pretty stubborn about offering its characters to online mobile games, which the company could profit off of.
But times are getting tight for Nintendo, and it's realizing that if it doesn't make some big changes, it'll sink.
Earlier this month, a statement from
announced that its anticipated Wii U units sold from April 2013 to March 2014 was changed from a previous 9 million to just 2.8 million. This represents a staggering 69 percent drop.
Wii U software doesn't look any better, with sales expectations falling from a previously reported 38 million to just 19 million.
The company also had to revise 3DS sales expectations, dropping from 18 million to just 13.5 million units sold. As for the original Wiis, Nintendo is cutting their sales expectations from a previous 2 million to 1.2 million.
With so many sales revisions, Nintendo is also decreasing its financial forecast, which includes a loss of 25 billion yen ($240 million USD) -- down from a previously reported 55 billion yen profit.
Iwata said the company was unable to take advantage of the weaker yen. Nintendo decreased its planned dividend for the fiscal year from 260 yen to 100 yen. Nintendo revised its foreign-exchange predictions from 90 yen to the dollar to 100 yen, and from 120 yen per euro to 140 yen.
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RE: It will be over
1/21/2014 12:48:51 AM
The last time Nintendo "sold out" we got those god-awful dreamcast Zelda games. No thanks. And the mobile market doesn't hold the answer. Smartphone gamers want cheap $1 thrills. They do not want to shell out $30 for something quality.
I believe there is still a mobile market--although it has shrunk. Parents will still be buying handhelds for their young children...and it's to that market that Nintendo should largely focus on for mobile gaming.
In both the mobile and home console markets, Nintendo can't provide what Nintendo is best renown for...if it can't dictate the hardware (namely peripherals and interfaces). Even trying to market a $50 game on PS or Xbox that requires a proprietary controller (at extra cost) is not going to be a successful business model; and even if Nintendo was able to sell it, it is likely that those interface devices would be poorly implemented into the console itself.
It's a crying shame that the entirety of the market seems to be preoccupied in a dick-measuring contest between PS4 and Xbone, rather than asking the most important question--which of the 3 consoles offers the most POTENTIAL for innovation and gaming progress--the 2 PC clones, or the "underpowered" (not really) standalone?
Tell me again how your gaming enjoyment is somehow hampered by the WiiU's supposed inability to natively render in 1080p?
RE: It will be over
1/21/2014 11:00:50 AM
Except nobody's suggesting that they sell or license out their properties. Only that they develop games for other hardware manufacturers' consoles.
Nobody wants to pay $250 for a Nintendo machine just to play Nintendo's first-party games, and then go back to their PS4/XB1 to play multiplatform games. A lot of us have been doing just that over Nintendo's last few generations, except there are even fewer first-party games out for Wii U than there were for Gamecube and Wii now.
RE: It will be over
1/22/2014 5:19:42 AM
Except that I don't go back to PS or Xbox when I want to play "multiplatform" games. I either fire up steam, or I shrug and walk away.
And why develop for other consoles? Why water-down their offerings so they'll fit in the unimaginative, uninnovative molds that PS and Xbox have?
"We shipped it on Saturday. Then on Sunday, we rested." -- Steve Jobs on the iPad launch
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