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Iwata implies he may resign over poor business performance

Ushojax

Should probably not trust the 7-11 security cameras quite so much
Software sells hardware. I think Nintendo have lost sight of that in recent years in terms of their scheduling, you cannot afford for your console to either launch without attractive software or go through 4 month lulls without any attractive new software. Hardware innovations like 3D display, GamePad screen will not sell consoles on their own.

It seems like once we get to March they will have a steady flow of software coming which is what they desperately need.
 

trinest

Member
Well the past few years have been riddled with issues for them. Someone has to take the blame, and with Japanese culture very pride based, it might be Iwata who does.

Also does Yamauchi have any family within Nintendo? Maybe bring the company back into the family line?
 
They must be expecting the first internal Wii U hardware revision to start production soon. I don't see why not, the 32nm and 28nm processes are plenty mature and will bring cost savings to push hardware into profitability with a price cut. They should also continue to raise margins on 3DS and phase out low margin DS hardware which will positively impact their operating margin.

¥100bn sounds like a big target, and I think it is, but it is also achievable if Nintendo have the right cost reduction plans in place. Also, the government have said they would be at ease (read - this is where it's heading) with ¥100 to the dollar and ¥140 to the Euro which will positively impact Nintendo's operating margin.

With cost savings, a weaker Yen and big titles like Mario Kart and Zelda I don't think we should count Iwata out just yet.
 

thuway

Member
Iwata is clearly the reason for Nintendo's over conservative approach. The man has ignored the company's pedigree of pushing the boundaries of gaming, and fostered a company that relied far too much on previous successes. Throwbacks are cool from time to time, but that's about all I expect out of this company now. It feels like they are bankrupt on ideas, and suffering from sequelitis.

The Wii U could have really upset Microsoft and Sony if it had lived up to the technical prowess that was once mentioned. Instead, it is more or less the most conservative and cowardly designed machine in the modern era.
 

ULTROS!

People seem to like me because I am polite and I am rarely late. I like to eat ice cream and I really enjoy a nice pair of slacks.
Perhaps Wada could replace him.

Yoichi Wada? So you mean like Yoichi Wada and Iwata switch companies? I'm alright with that (SE becoming actually good again, not Nintendo whoring out Mario and killing Metroid).
 
I hope he can right things and stick around, I really like Iwata. That said, I'm not entirely opposed to the idea of Nintendo gaining a fresh perspective from someone else at the helm.
 

2MF

Member
I checked their historical data. Since 1998, the only years they haven't achieved 100 bln yen op. profit were 2001, 2006 and 2012.

I do see a pattern there ;)
 
iwataneogafbelieve1ojny.gif
 

Lynd7

Member
I think Iwata resigning would be bad for Nintendo. Iwata is a smart man, and I like his outlook and mentality for both Nintendo and the industry. If they hire someone simply out for profit at any cost, it could mean the end of the Nintendo we all love.

I don't want them to one day turn into Sega.
 
Iwata is clearly the reason for Nintendo's over conservative approach. The man has ignored the company's pedigree of pushing the boundaries of gaming, and fostered a company that relied far too much on previous successes. Throwbacks are cool from time to time, but that's about all I expect out of this company now. It feels like they are bankrupt on ideas, and suffering from sequelitis.

The Wii U could have really upset Microsoft and Sony if it had lived up to the technical prowess that was once mentioned. Instead, it is more or less the most conservative and cowardly designed machine in the modern era.

This is so ridiculously off base, I'm not sure where to begin.
 

Oddduck

Member
Seeing Iwata gone would be pretty sad.

But as others have said, if problems keep arising, someone has to take the blame.
 

Striek

Member
I don't read that implication from that statement.

But that said 100B yen operating profit or (much) more was the norm for a decade outside the last two years, clearly the generational transition has been very hard and mistakes have been made, someone has to take the fall.
 

grandjedi6

Master of the Google Search
I checked their historical data. Since 1998, the only years they haven't achieved 100 bln yen op. profit were 2001, 2006 and 2012.

I do see a pattern there ;)

So console launches. Of course.

And I think you might have meant op. income and not profit? Haven't checked myself though.
 
They must be expecting the first internal Wii U hardware revision to start production soon. I don't see why not, the 32nm and 28nm processes are plenty mature and will bring cost savings to push hardware into profitability with a price cut. They should also continue to raise margins on 3DS and phase out low margin DS hardware which will positively impact their operating margin.

¥100bn sounds like a big target, and I think it is, but it is also achievable if Nintendo have the right cost reduction plans in place. Also, the government have said they would be at ease (read - this is where it's heading) with ¥100 to the dollar and ¥140 to the Euro which will positively impact Nintendo's operating margin.

With cost savings, a weaker Yen and big titles like Mario Kart and Zelda I don't think we should count Iwata out just yet.

So that leaves no room for a pricecut whatsoever right?
 

orioto

Good Art™
Would be sad indeed cause he's iconic, but Nintendo has no direction lately... Not sure Iwata is responsible for that anyway.
 
I don't read that implication from that statement.

But that said 100B yen operating profit or (much) more was the norm for a decade outside the last two years, clearly the generational transition has been very hard and mistakes have been made, someone has to take the fall.

Geez i dunno, Riccitellos lasted a long time at EA and funded a 500 mill MMO...
 

2MF

Member
So console launches. Of course.

And I think you might have meant op. income and not profit? Haven't checked myself though.

Operating income = operating profit (or loss, depending on whether it's positive or negative).

Same thing.
 

EatChildren

Currently polling second in Australia's federal election (first in the Gold Coast), this feral may one day be your Bogan King.
Like any public company, being beholden to shareholders is destined to result in immense pressure when markets change unfavourably, and perhaps to beyond the point of return. Take the portable market. The days of dedicated handhelds dominating in the West is over. That doesn't mean they cannot make profit and live healthily within the market, but the era of domination is over. Mobile has surpassed them, and that's just a case of technology naturally evolving and becoming more widespread among the public. There's not much Nintendo can do about it.

But shareholders are always going to be pushing for more, especially when compared to profits of previous years. So what does Nintendo do in a position like that?
 

AniHawk

Member
Well the past few years have been riddled with issues for them. Someone has to take the blame, and with Japanese culture very pride based, it might be Iwata who does.

Also does Yamauchi have any family within Nintendo? Maybe bring the company back into the family line?

minoru arakawa, his son-in-law, was the president of nintendo of america for a long time. he was president of noa until they got the guy reggie would eventually replace.

if i'm remembering game over correctly, he has three daughters, and they pretty much hate him and the company. i dunno about grandchildren, but they'd probably be in their 30s by now.
 

nikatapi

Member
Τhere are new pokemon games coming. Don't underestimate their power to sell 3DS consoles. Also some big titles for the WiiU are coming as well, so we shouldn't count Iwata out yet.
 

Katsuragi

Member
I don't read that implication from that statement.
Having read the whole English version of the briefing, I don't really see the implication either. This news item seems quite speculative to me. Maybe Japanese business culture is a bit more subtle in that regard, though.
 
Globally operating Japanese companies really ought to look to Western practices regarding who takes responsibility when there is a problem in the business. Well I guess it isn't just in business, everywhere you look there is this tendency that when a problem arises within a group it must be due to one person and it is up to them to admit error for the good of the collective. I haven't lived here all that long and I've already lost track of how many Prime Ministers have come and gone...
 
Would be sad indeed cause he's iconic, but Nintendo has no direction lately... Not sure Iwata is responsible for that anyway.
Constant stream of games after March @ Wii U, cost reduction, 3DS is profitable, 3DS has some promising games for the West, etc.

And of course, better and greater spending on marketing.
 

Erethian

Member
get rid of reggie already
other then comic relief WTF does that guy even do?

"nintendo of america" is a total joke

NoA definitely needs a management shakeup, in light of it consistently being their worst-performing territory with the 3DS. It's not like NoE isn't facing a lot of the same issues either, so you can't just put it down to economic or market problems.
 

AniHawk

Member
I think Iwata resigning would be bad for Nintendo. Iwata is a smart man, and I like his outlook and mentality for both Nintendo and the industry. If they hire someone simply out for profit at any cost, it could mean the end of the Nintendo we all love.

I don't want them to one day turn into Sega.

they guys in charge of sega ran it with love even as they went third-party. it wasn't until sammy took over that things really went to shit. the old guard at sega was even planning a new console for wii/360/ps3 generation until sammy's people killed the idea.

in short: sammy is literally the worst thing ever.
 

trinest

Member
Nintendo has a lot of money, they should buy back their shares and become private.

they guys in charge of sega ran it with love even as they went third-party. it wasn't until sammy took over that things really went to shit. the old guard at sega was even planning a new console for wii/360/ps3 generation until sammy's people killed the idea.

in short: sammy is literally the worst thing ever.

Wait really? what was it like?
 
So that leaves no room for a pricecut whatsoever right?

It does, I think phasing out the basic SKU and sticking the premium one at $299 would still be feasible with this ¥100bn target in mind. Also, remember the markets aren't going to scream off with his head if they hit say ¥85bn, it would be acceptable enough for Iwata to stay in place.

What they need to do is stop being so deluded with their hardware forecasts. It is getting highly questionable that they start so high and end so low. Nintendo need to get real about how much their hardware is going to sell. They have still overestimated Wii U sales by 500k and that miss is going to hurt them in April, missing a downgraded forecast is bad, worse than missing an originally lower one.
 

demidar

Member
Iwata's great because of his background in programming and development. I don't know of anyone who can replace him. Also he's so lovable.

If he leaves, Nintendo is doomed for real.
 

AniHawk

Member
Wait really? what was it like?

i don't think anyone knows any details, just that sega's plan to go third party was apparently a temporary one. i think they'd had some success in the third-party age.

sammy forced the buyout/merger of sega and started to ea up the place.
 

orioto

Good Art™
Constant stream of games after March @ Wii U, cost reduction, 3DS is profitable, 3DS has some promising games for the West, etc.

And of course, better and greater spending on marketing.

And yet WiiU feels like a "yeah.. let's do that.." 3ds wasn't a smart decision in itself neither. I mean the 3d thing you know.. It's just that in some part of the world a Nintendo portable is doomed to succeed. It can be anything, really.

But that doesn't change the fact that Nintendo communication and decisions lately have been random and uninspired, except for money hating Capcom !
 

ffdgh

Member
He did screw up the names for the 3ds and wii u.....but him resigning would probably do more harm than good.....unless they can magically find someone super tech savy that can really improve the online system.
 
Hope he does it. Iwata does a very good job at Nintendo of just keeping a steady hand.
They'd have always struggled with Wii U; just as they struggled with the Gamecube - third parties won't turn up to boost Nintendo software sales.
 

Delio

Member
If Iwata was to leave I wonder who would replace him. I also wonder what direction Nintendo would go. High end again? Is that what people are hoping for?
 
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