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 9:50:31 AM
It's not really underpowered. It is a huge step up from the Wii, which was pretty much a Gamecube internally. The WiiU is more powerful than the Xbox 360 and the PS3, and third party devs managed just fine on those systems. Nintendo didn't want a system as expensive as the new gen of Sony and MS consoles.
It is missing some of the iconic games that sold systems in the past for Nintendo. Not sure why they launched with no Smash Bro or MarioKart near ready for release. But they do have games that keep my kids amused, and that is why we bought it. Nintendoland offers them way more than Shooter of the Month 37 would. When I want more "serious" gaming, I have the PC.
RE: It will be over
1/21/2014 11:30:33 AM
I have both Marios and love it.
But it seems Mario ain't selling consoles anymore. CoD does. Battlefield 4 does.
Mario/Zelda/Pokemon would make the difference if the Wii-U had all the same third party games that XB1/PS4 have.
But Nintendo arrived with an underpowered PowerPC CPU, a decent GPU (AMD 4850 class) angainst both octo-core x86 Jaguar CPU and AMD 7850 class GPU. Now you're a game developper, where will you spend your ressources? I would do XB1, PS4 and a port to PC using over 80% of the same code, and the hell with nintendo. Now, i do like the gamepad, but hey, can't have everything.
RE: It will be over
1/21/2014 3:11:14 PM
But it is.
Hardware is fine for next version of Mario & Co., but with gaming (in general) moving toward more interactive, dynamic-context online games (and MMOs), system with 1GB of RAM to share between CPU and GPU, and extremely limited dynamic storage is severely handicapped.
"People Don't Respect Confidentiality in This Industry" -- Sony Computer Entertainment of America President and CEO Jack Tretton
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