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Prominent shareholder pushes Nintendo to join mobile gaming race

maxcriden

Member
Seth Fischer, one of Asia's best-known hedge fund managers, has written to Nintendo Co Ltd urging the Japanese console maker to develop and sell games for mobile platforms run by Apple Inc and Google Inc.

Fischer, of Hong Kong-based Oasis Management Co Ltd, sent a similar letter in June to Nintendo, in which Oasis owns shares. His latest missive adds to investor pressure for the company to move on from making games only for its propriety consoles.

"Nintendo needs to embrace this thematic change in consumer demand, behaviour and expectations to stay relevant," said Fischer, Oasis' chief investment officer, in a letter on Wednesday obtained by Reuters.

"It is readily apparent that the standard elasticity of demand principle no longer applies in the consumer entertainment market when access requires the purchase of a physical product," Fischer said in the letter to Nintendo Chief Executive Satoru Iwata.

Nintendo relies on the popularity of its franchises, such as Mario and Zelda, to drive sales of its hardware, but investors fear Nintendo is missing out on opportunities offered by smartphones or tablets, over 1 billion of which are in use and account for a rising proportion of games played.

Mobile games developer King, for example, generated $1.9 billion in revenues in 2013, or $5 million a day, from its game Candy Crush Saga which has been downloaded more than 500 million times since its 2012 launch.

The importance of mobile platforms for technology companies was driven home last week by Facebook Inc's $19 billion purchase of messaging app WhatsApp, which followed a similar acquisition by Rakuten Inc the week before.

"As the holder of what is arguably the largest library of casual games, Nintendo is well placed to make an immediate entry into mobile," Fischer said.

More at the link:

http://uk.reuters.com/article/2014/02/26/uk-nintendo-hedgefunds-idUKBREA1P0IU20140226
 

stilgar

Member
Yeah King is a wonderful example of where Nintendo should go in the near future.

Next stop, Cranky Kong Crush
 

Kouriozan

Member
Someone didn't read/listen last shareholder meeting x)
I'm curious about Nintendo being able to "immediatly" enter the mobile market, considering that they are making baby step about account system and all that.
The only Nintendo IP I can see on mobile is Wario Ware, seems to fit that audience well enough.
 

gngf123

Member
"Prominent Nintendo shareholder suggests they become more like King".

This is why I hope Iwata doesn't leave. I fear whoever replaces him will actually support these crazy ideas.
 

iMax

Member
Why doesn't Nintendo just make a phone? Their OS has a decent foundation from a design standpoint. Skin it onto Android, make the hardware look like my black and red 3DS, and I'm in.
 

KingSnake

The Birthday Skeleton
His own fund is about $200 million in total. I guess they have like 10 Nintendo shares or something? Unless he bet the whole fund on Nintendo.
 

DJIzana

Member
Boo this man!!! (The share holder.) I don't want Nintendo even considering touching the mobile market. Not one bit...
 

Marcel

Member
Why doesn't Nintendo just make a phone? Their OS has a decent foundation from a design standpoint. Skin it onto Android, make it look like my black and red 3DS, and I'm in.

Nintendo making a phone would probably a bigger albatross around their neck than investing in mobile games.
 

vareon

Member
I'm guessing he's not the only shareholder pushing this agenda? I can't find how prominent he is from the article.
 

Jarnet87

Member
Why doesn't Nintendo just make a phone? Their OS has a decent foundation from a design standpoint. Skin it onto Android, make the hardware look like my black and red 3DS, and I'm in.

This ain't the mid 2000's brah. Go get yourself an Ngage if you wanna be nostalgic.
 

Imbarkus

As Sartre noted in his contemplation on Hell in No Exit, the true horror is other members.
Public stock exchanges are the worst invention ever.
 

iMax

Member
That would bomb so bad.


Nintendo making a phone would probably a bigger albatross around their neck than investing in mobile games.

You seriously wouldn't be into that?

A nice designed smartphone with Nintendo ecosystem integration and a bunch of bespoke first-party games would be pretty awesome in my eyes.

Animal Crossing, for one example, would work great! They could build an entire social network around it, integrating a bunch of other stuff into it.
 
Why doesn't Nintendo just make a phone? Their OS has a decent foundation from a design standpoint. Skin it onto Android, make the hardware look like my black and red 3DS, and I'm in.

image.png
 

ramparter

Banned
Why people keep thing negatively of mobile? Imagine a pokemon game on android/ios/wphone with all the social features and classic pokemon rpg game. That's just one example.
I can think many more, Tetris, Dr Mario, Wario Ware, Brain Training etc. Even MK.

The market is there, the potential is there, I just hope they do the right things.
 

SmokyDave

Member
They really ought to dip their toes in and try something like Puzzle & Dragons or Brave Frontier. Very little risk with the potential for high rewards. They'd need to wrap their heads around how to make a mobile game though, not just put Mario in a title and charge £40.

Call of Duty and GTA also make a lot of money, his point?
There's money to be made, and Nintendo ain't getting much of it?
 

Whompa

Member
Looks like people who aren't practicing finance just want Nintendo to stay the course and continue to disappoint on almost all fronts except for handheld...which is getting challenged by iOS and android.

Honestly, if Nintendo went mobile, I wouldn't blame them. It's their only strong market right now, unfortunately. The problem is if that's a short term or long term profit for them. I sure don't know.
 
You seriously wouldn't be into that?

A nice designed smartphone with Nintendo ecosystem integration and a bunch of bespoke first-party games would be pretty awesome in my eyes.

Animal Crossing, for one example, would work great! They could build an entire social network around it, integrating a bunch of other stuff into it.

1, Negotiate with carriers.
2. The phone market is mostly dictated by 18up audience. (they have the power to actually buy a phone). Most kids (nintendo audience) have ipod touches and such.
3. Given the power of android, IOS and to a lesser extend WP8 Nintendo making a phone OS would be a waste of time and also would put developers on a position to support another dev kit. Unless porting tools are effective.
4. So many other things.
 

_Ryo_

Member
If Nintendo ever do it here are some ideas.

1. Release companion games for mobile.

2. Release a Virtual Console aimed for tablets, allow official support for pro gamepad.

3. Make mobile versions of unused IPs to gauge demand for console quality games. I.e Starfox on mobile to help fund starfox wii u.
 

Shengar

Member
Why doesn't Nintendo just make a phone? Their OS has a decent foundation from a design standpoint. Skin it onto Android, make the hardware look like my black and red 3DS, and I'm in.

Who will makes the app for them then? I forget, it's Nintendo so we don't need third party software developers right?
 

Marcel

Member
Looks like people who aren't practicing finance just want Nintendo to stay the course and continue to disappoint on almost all fronts except for handheld...which is getting challenged by iOS and android.

Honestly, if Nintendo went mobile, I wouldn't blame them. It's their only strong market right now, unfortunately. The problem is if that's a short term or long term profit for them. I sure don't know.

Don't worry, you're not "practicing finance" either. You're shouting and throwing popcorn from the NeoGAF backseat just like everyone else.
 

R0ckman

Member
"Prominent Nintendo shareholder suggests they become more like King".

This is why I hope Iwata doesn't leave. I fear whoever replaces him will actually support these crazy ideas.

I don't disagree, but to say a company does something to make more money is crazy is a little crazy yes?
 

JoeM86

Member
Shareholders, especially hedgefund managers, are in it for a quick buck, which is against Nintendo's plans. Nintendo plays the long game.

Besides, I remember seeing somewhere recently that Nintendo's revenue was on par with the iOS App Store.

Nintendo just need to get sales back onto their devices. Claiming defeat and switching to mobile would be a death sentence.

I don't disagree, but to say a company does something to make more money is crazy is a little crazy yes?

No, but saying a company should abandon their practices and follow the current market bubble which is bound to burst (like the Internet bubble did) is just negligent and ridiculous.
 
I know, shitload. Still, it would be a nightmare. Mobile games are the creative equivalent of crocs shoes.
Nintendo needs revenue, they can release a very small number of titles on phones and use the proceeds to fund fuller, more traditional experiences.

I think they can exist on both platforms.
 

iMax

Member
1, Negotiate with carriers.
2. The phone market is mostly dictated by 18up audience. (they have the power to actually buy a phone). Most kids (nintendo audience) have ipod touches and such.
3. Given the power of android, IOS and to a lesser extend WP8 Nintendo making a phone OS would be a waste of time and also would put developers on a position to support another dev kit. Unless porting tools are effective.
4. So many other things.

Nah, obviously we don't need another mobile OS. But an Android re-skinning, similar to the Kindle Fire would be cool.

They could put that out on their own designed smartphones, integrate it with their own online ecosystem, and connect it with the eShop.
 

Qassim

Member
You seriously wouldn't be into that?

A nice designed smartphone with Nintendo ecosystem integration and a bunch of bespoke first-party games would be pretty awesome in my eyes.

Animal Crossing, for one example, would work great! They could build an entire social network around it, integrating a bunch of other stuff into it.

Nintendo are awful at both hardware and especially software. Even the worst smartphone makers are significantly better at that than Nintendo - it'd likely be awful.
 

Marcel

Member
Shareholders, especially hedgefund managers, are in it for a quick buck, which is against Nintendo's plans. Nintendo plays the long game.

Besides, I remember seeing somewhere recently that Nintendo's revenue was on par with the iOS App Store.

Nintendo just need to get sales back onto their devices. Claiming defeat and switching to mobile would be a death sentence.

And they're losing the long game, despite having the biggest war chest from last generation. Nintendo needs parity with the other guys and they're being consistently being edged out. A shift in direction is inevitable.
 

iMax

Member
Nintendo are awful at both hardware and especially software. Even the worst smartphone makers are significantly better at that than Nintendo - it'd likely be awful.

Awful at hardware? I think the 3DS XL is gorgeous. I thought most people agreed with that too?
 

Bedlam

Member
Short-sightedness at its finest.

Also, for all the Candy Crush Sagas and Flappy Birds out there, there are thousands of very similar games that flopped spectacularly. The mobile business is really more of a lottery but shareholders and some enthusiast writers are blinded by the extreme extent of these success stories.
 

JoeM86

Member
And they're losing the long game. Nintendo needs parity with the other guys and they're being consistently being edged out. A shift in direction is inevitable.

No, they're not losing the long game. They've hit a bump, but they're not losing. If they had 6-7 years of losses, then yes. However, they have had two years of operating loss, one of which in overall profit, and they've projected an overall loss for a second year due to rapid expansion and other things. If we looked just at FY32014 figures from Q1-Q3, they were looking at another year of operating loss but overall profit, but they are expanding fast this quarter which has pushed them back into the red.

Plus, something people keep missing...the Wii U is not their entire business. 3DS is doing well.

They are far, far from losing.
 
They are definitely going to need to look for new sources of income outside of their own hardware in the next few years the way things have been going for them.

Even if they don't want to develop mobile specific titles from scratch, I honestly don't see why they don't just start releasing Virtual Console shit on mobile platforms. It would be like money for nothing.
 

LCGeek

formerly sane
Nintendo needs revenue, they can release a very small number of titles on phones and use the proceeds to fund fuller, more traditional experiences.

I think they can exist on both platforms.

That's not the problem. The problem is them doing it right and off the bat. They do it wrong they will cannibalize themselves or just make things worse while wasting time and resources.
 
You seriously wouldn't be into that?

A nice designed smartphone with Nintendo ecosystem integration and a bunch of bespoke first-party games would be pretty awesome in my eyes.

Animal Crossing, for one example, would work great! They could build an entire social network around it, integrating a bunch of other stuff into it.
Does Nintendo seem like the kind of company that would work with third party carriers? Hell, they don't work with third parties in the industry in which they belong.
Prominent shareholder demonstrates lack of knowledge of the medium.
He knows how to make money though

That's not the problem. The problem is them doing it right and off the bat. They do it wrong they will cannibalize themselves or just make things worse while wasting time and resources.
I think they're smart enough to do it right.

They have to do something
 
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