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Nikkei: "June will be a major test for Iwata"

Zoc

Member
A thread on this topic was already created here but was locked. This is my (rough) translation of the original Japanese source here. Things look bad for Iwata, he has declining support within Nintendo.

Summary:
* Nintendo rejected the suggestion of a Hong Kong investor that Nintendo move towards smartphone games with the observation "are there any companies that have had sustained revenue growth from smartphone games?"
* The head of a large Chinese investment firm assigned to analyze Nintendo observed that "Nintendo must leverage its intellectual property, such as its characters." As a matter of fact, a few years ago there were rumours that Nintendo was planning to open a theme park based on its characters in Kyoto, but the project has apparently been mothballed.
* These comments on Nintendo's existing properties reflect the irritation of investors who believe that the company has not found new sources of revenue.
*Consolidated profits and earnings for the fiscal year ending in March showed a loss of 35 billion yen, (compared to a 36.4 billion yen loss the year previously) representing three consecutive years of losses.
*Iwata said "only after playing the WiiU is it possible to understand its appeal. Low sales are due to the console being not well-enough known." Within the company, proposals for how to play the WiiU are being considered.
*Current cash reserves are over 500 billion yen, but whether Iwata will be given unlimited time is a separate question.
*At the general meeting in March 2011, Iwata was reappointed with 92.89% of the vote, but in 2013 he was reappointed with only 77.26%.
*This coming June will be a major test for Iwata.
 
Yup. Nintendo has to fucking bring it at this year's E3 as far as the Wii U goes. Price drops, new games, etc. If Nintendo has another bad E3, the Wii U is as good as dead and maybe Iwata's job as well.

Why is it June specifically? It says that the approval vote is in March.

Probably because that's when E3 is.
 
*Iwata said "only after playing the WiiU is it possible to understand its appeal. Low sales are due to the console being not well-enough known." Within the company, proposals for how to play the WiiU are being considered.

Isn't that the type of thing that you should figure out before you release your console? It's been over a year and they still don't know how to sell it to people.
 

Instro

Member
*Iwata said "only after playing the WiiU is it possible to understand its appeal. Low sales are due to the console being not well-enough known." Within the company, proposals for how to play the WiiU are being considered.

Yes that's what the problem is. LOL
 
Not sure why Nintendo's so leery of mobile. Microsoft and Sony have embraced iOS and Android, and their IPs don't have a fraction of the appeal that Nintendo's do.

I understand not just dumping ROMs with shitty controls, but there is no reason Nintendo can't release the SM64DS mini-games, or a Canvas Curse game. If anything, little bite-sized teasers would be a good gateway drug for people who don't own a 3DS, but might eventually.
 

Effer

Member
Yes that's what the problem is. LOL

They will only entertain the option that the Wii U is undesirable when they have exhausted every single other possibility. Whether he genuinely believes in the Wii U, or whether he's just trying to save face, we may never know.
 

AmyS

Member
Iwata must announce the code names of the next handheld and also the next console as well as drop the price of Wii U to $199, plus, the release window for Zelda U (i.e. holiday season 2015).

In otherwords, Iwata must drop four bombs.
 
You can leverage your nostalgia and IPs without necessarily having to make mobile games. I'm convinced that the Virtual Console is a sleeping giant for Nintendo if they would stop fucking it up every step of the way. If you make it a simple, comprehensive store front and make the hardware to play it cheap enough people will throw money your way.
 

markot

Banned
Not sure why Nintendo's so leery of mobile. Microsoft and Sony have embraced iOS and Android, and their IPs don't have a fraction of the appeal that Nintendo's do.

.

You mean companies that.... are selling mobile phones and mobile phone platforms? Gee, I wonder why?
 

Nirolak

Mrgrgr
* Nintendo rejected the suggestion of a Hong Kong investor that Nintendo move towards smartphone games with the observation "are there any companies that have had sustained revenue growth from smartphone games?"
I think it's okay to analyze a situation and decide that mobile is not for you based on your skillset and strengths as a company.

I think it's incredibly disingenuous to argue there aren't a ton of companies who have been making lots of money in mobile for years now, and experienced strong growth, especially when you completely fail your "sustained revenue growth" bar of success before we even begin to analyze the answer to your question.
 

Zoc

Member
Isn't that the type of thing that you should figure out before you release your console? It's been over a year and they still don't know how to sell it to people.

That part was a little unclear to me in the Japanese, actually. It could have meant that the company wants to show people how the console is played, maybe with a new advertising campaign, or that the company is doing internal research on new gameplay ideas. I'm only about 60% sure the latter is what was meant.
 
As a matter of fact, a few years ago Nintendo was planning to open a theme park based on its characters in Kyoto, but the project has apparently been mothballed.

Damn, I really wish this was a real thing even if it was just in Japan
 

CSX

Member
There's going to be a lot of bowing in a few months it seems :\

I just can't see Nintendo recovering unless Iwata drops some revolutionary bomb
 

graywolf323

Gold Member
You can leverage your nostalgia and IPs without necessarily having to make mobile games. I'm convinced that the Virtual Console is a sleeping giant for Nintendo if they would stop fucking it up every step of the way. If you make it a simple, comprehensive store front and make the hardware to play it cheap enough people will throw money your way.

heck they'd get more money from me if they just fixed the account system

though it would be really nice if they copied Sony more on the cross-buy aspect, I'd love to get some of the GBA games they are releasing on the Wii U eshop and be able to play them on both Wii U and 3DS
 
= As a matter of fact, a few years ago Nintendo was planning to open a theme park based on its characters in Kyoto, but the project has apparently been mothballed.
.

You have a good 10 seconds to explain to me why this never happened anywhere Nintendo.
Time's up. I'm officially sad
 

Toad.T

Banned
* The head of a large Chinese investment firm assigned to analyze Nintendo observed that "Nintendo must leverage its intellectual property, such as its characters." As a matter of fact, a few years ago Nintendo was planning to open a theme park based on its characters in Kyoto, but the project has apparently been mothballed.

I so hope that some of the concept art from this project leaks out one day. It seems like it would've been more than just the usual state-fair fare with Nintendo paint splashed on top. (like PokéPark was.)
 

Anth0ny

Member
Zelda and playable Smash Bros will be at E3 in June. Everything will be fine. All it takes it one game to make all the difference.
 

Squire

Banned
*Iwata said "only after playing the WiiU is it possible to understand its appeal. Low sales are due to the console being not well-enough known." Within the company, proposals for how to play the WiiU are being considered.

Reminds me of John Carmack's comment about VR last week - that it makes converts on contact.

I think that's true for VR and it was for the original Wii. It's not for Wii U. It's a tired gimmick and a known quantity.
 
I think it's incredibly disingenuous to argue there aren't a ton of companies who have been making lots of money in mobile for years now, and experienced strong growth, especially when you completely fail your "sustained revenue growth" bar of success before we even begin to analyze the answer to your question.

Clearly there are no companies who have had sustained revenue growth for 30 years in mobile thus it's not for Nintendo :p
 

Instro

Member
They will only entertain the option that the Wii U is undesirable when they have exhausted every single other possibility. Whether he genuinely believes in the Wii U, or whether he's just trying to save face, we may never know.

Regardless of either, its just laughable that this is the only WiiU issue that they will admit to.
 
I think it's okay to analyze a situation and decide that mobile is not for you based on your skillset and strengths as a company.

I think it's incredibly disingenuous to argue there aren't a ton of companies who have been making lots of money in mobile for years now, and experienced strong growth, especially when you completely fail your "sustained revenue growth" bar of success before we even begin to analyze the answer to your question.

It's amazing how stubborn they are about it. It's almost like a petulant child.
 
You mean companies that.... are selling mobile phones and mobile phone platforms? Gee, I wonder why?
Well, they're selling on their competitors' platforms is what I meant, which I assume is because their own are failing and/or so niche that not branching out would be dumb.

Nintendo's walled garden approach only works if people actually want to enter that garden. 3DS' premature saturation in basically every territory and Wii U's stillborn uptake tell me that most people have moved on, and Nintendo's not moving along with them.
 
OH MY GOD. GIVE ME THIS!
Yeah things like this, movies, merchandising, etc would go a long way in maintaining popularity and really strengthen their brands
Not sure why Nintendo's so leery of mobile. Microsoft and Sony have embraced iOS and Android, and their IPs don't have a fraction of the appeal that Nintendo's do.

I understand not just dumping ROMs with shitty controls, but there is no reason Nintendo can't release the SM64DS mini-games, or a Canvas Curse game. If anything, little bite-sized teasers would be a good gateway drug for people who don't own a 3DS, but might eventually.
Nintendo can't even support their own hardware or release old games on their own hardware much less release low risk/low reward on competitor's products.
 

terrisus

Member
*Consolidated profits and earnings for the fiscal year ending in March showed a loss of 35 billion yen, (compared to a 36.4 billion yen loss the year previously) representing three consecutive years of losses.

*Current cash reserves are over 500 billion yen

Well, that gives a more specific answer to stuff that's been discussed in previous topics.

So, while obviously things aren't going to continue as they have been (obviously something is going to be done, for better or worse or just different), but, even with how relatively bad things have been going the past few years (their first fiscal losses ever coming in those 3 years), if they had to, they have a big enough money bin of cash (even ignoring stuff like properties and other such stuff, just pure money) for 14 years of these horrible losses.

To clarify, again, I know people aren't just going to stand around and twiddle their thumbs through 14 years of losses. But, the point is, even with how catastrophic (relatively speaking) things have been, the notion that those losses are putting the company in any sort of immediate danger with regards to them not having money are simply absurd.
 

Sipheren

Banned
You can leverage your nostalgia and IPs without necessarily having to make mobile games. I'm convinced that the Virtual Console is a sleeping giant for Nintendo if they would stop fucking it up every step of the way. If you make it a simple, comprehensive store front and make the hardware to play it cheap enough people will throw money your way.

This, the VC is where it is at, it still requires Nintendo hardware and Nintendo can still have full control of the environment. If only they would use some of that cash they have and get every single title they have ever published onto the VC by E3, that would be so amazing and it would sell like crazy.

Not to mention, why not use mobile for things like the Google April fools idea, would not an AR app using Google Maps and Pokemon sell like crazy?
 

vinnygambini

Why are strippers at the U.N. bad when they're great at strip clubs???
Definitely will be if he doesn't shore up the votes to remain in his position.

Ain't nobody got time for his failures and misguidance any longer.
 
Indeed. Remember everyone, in June of this year there will be the General Meeting of Shareholders, where Shareholders will re-elect Iwata to the Board of Directors.

Last year his approval rate plummeted 13%.

Historical Re-election Approval Ratings:

Iwata, 2010:
Approve: 952,201
Oppose: 19,072
Approval Rating: 96.74%

Iwata, 2011:
Approve: 932,379
Oppose: 48,339
Approval Rating: 92.89%

Iwata, 2012:
Approve: 913,453
Oppose: 83,740
Approval Rating: 90.60%

Iwata, 2013:
Approve: 772,384
Oppose: 218,960
Approval Rating: 77.26%



It's interesting what will happen if he doesn't get 50% / the majority to vote for him this year. This year will be a real test for Iwata.
 
Nintendo is in trouble. There's nothing they can do to steal the thunder from VR E3. They can Zelda, price cut, new Pokemon, new Metroid.... Doesn't matter. VR is the hot new thing, and everything else is last gen.
 

AmyS

Member
For the next console, especially for the Japanese market, the name Ultra Famicom has a nice ring to it. Ultra NES / Ultra Nintendo would also be great for the western world, especially if it got tied to 4K Ultra HD.
.

Before you say
"but they're still relatively new to HD development
I say that I don't give a shit, pour a fuckton of cash into it, they've got it to spend on what very well might be their last console.
 

VariantX

Member
I'm not big on mobile, mainly because that market is poisonous to anything that isnt $1-2 and doesn't feature in app purchases, but Nintendo really should have moved their touch generations stuff over to mobile a while ago. That stuff would work every bit as well as it does on their hardware and the audience for that stuff is damn near exclusively a mobile audience at this point. Stuff like picross, nintendogs, crossword puzzles, and brain training would transition smoothly over there unlike their bread and butter stuff like platformers.
 
Is their cash reserve really only half it was like 18 months ago? That's wrong or really bad.

Stock buy-back, ramping up development / marketing, and an investment into new facilities. All of that costs a lot of money. I for one am glad that Nintendo is doing some good with their large cash stockpile.
 
I'm not sure why people keeping pushing Nintendo to make smartphone games as if it's the answer to all of their ills. Their problems lie far, far deeper than the void they leave on the iOS store: they need not look further than their own systems to see this. To right itself, Nintendo needs to adjust its stance on its own hardware, rather than put all of their eggs in Apple's basket.

With that said, I really want to see Nintendo change course. They've shunned many of the advancements in technology and the evolution of the gaming business that have emerged over the past decade (particularly graphics, online, and third-party relationships). It seems it's finally caught up with them. Iwata is not the right leader for Nintendo going forward. He's too close-minded. Their ignorance of the Wii U's flaws are proof of this and the way they've handled the console so far are proof of this.

I look forward to positive change in Nintendo's future.
 
Can someone actually provide an example of a traditional gaming company that has experienced sustained revenue growth from releasing games on mobile or are we just assuming here?
 
That part was a little unclear to me in the Japanese, actually. It could have meant that the company wants to show people how the console is played, maybe with a new advertising campaign, or that the company is doing internal research on new gameplay ideas. I'm only about 60% sure the latter is what was meant.

I think either way it's something that you shouldn't be struggling to figure out over a year since the console has been available. It's just another reason why the Wii U seems like it never had focus. On one hand it was meant to draw in the hardcore gamers that Nintendo felt that the Wii pushed away, but it lacks many of the features that those gamers want. And on the other hand they wanted to keep that crowd that they brought in with the Wii, but they released a console that cost $100 more at launch and its main controller input is the biggest traditional controller since that Jaguar monstrosity.
 
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