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Bloomberg: Nintendo's Mario Pressured to Jump to iPhone

jwluther

Member
Dec 3, 2010
961
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0
Lock if old.
Bloomberg said:
In “Super Mario 3DLand,” Nintendo Co. will make its iconic Italian plumber battle turtle-like Koopa Troopas on its 3-D player. The company instead should develop titles for Apple Inc. (AAPL)’s iPhone, investors say.

The rift highlights the dilemma President Satoru Iwata faces as consumers shun Nintendo devices to play games on iPhones, iPads and Facebook Inc.’s website. The flop of the 3DS debut prompted the company to slash prices 40 percent in Japan starting today, the first time the games developer has resorted to such a move within six months of a product’s debut.

Iwata, who’s said Nintendo will only make titles for its own products as long as he’s in charge, should scrap that strategy to avoid further alienating investors who’ve driven the stock to six-year lows, fund manager Masamitsu Ohki said. One option may be acquisitions as the past successes of the Wii and DS helped Nintendo, the world’s largest video-game maker, build a 1.05 trillion yen ($13.7 billion) war chest in cash, equivalents and short-term investments.

“Smartphones are the new battlefield for the gaming industry,” said Ohki, a fund manager at Tokyo-based Stats Investment Management Co. “Nintendo should try to either buy its way into this platform or develop something totally new.”

He declined to identify his holdings or to name any companies that Kyoto, Japan-based Nintendo should consider as acquisition targets. Yasuhiro Minagawa, a spokesman at Nintendo, declined to comment beyond statements made previously by Iwata.

Ohki isn’t alone in saying Iwata should reconsider his strategy. On July 6, Nintendo shares jumped the most in almost four months after Pokemon Co., a former unit, said it’s developing a game for the iPhone and handsets running on Mountain View, California-based Google Inc.’s Android software. JPMorgan Chase & Co. (JPM) sent a note to clients saying the move indicated Nintendo may begin making titles for products outside its proprietary hardware.

Hours later, Nintendo denied any change in strategy, and the shares surrendered gains.

“They just don’t get it,” MF Global FXA Securities Ltd. said in a sales note that day, referring to Nintendo. “Sell the stock, because a management once feted for creative out-of-box thinking have just shown how behind the times they are.”

Given the concerns over the outlook of Nintendo’s handheld and home-console business, which account for most of the company’s profit and sales, Nintendo should make better use of its more than $10 billion cash pile, investor Tetsuro Ii said.

“Nintendo should aggressively make acquisitions or increase returns to its shareholders,” said Ii, president of Tokyo-based Commons Asset Management Inc., which held 2,200 Nintendo shares as of February, according to the company’s website. “It’s management’s task to consider how to make use of the cash.”
Source
 

eastmen

Banned
May 20, 2010
4,789
0
0
This is the problem with the stock market .

No one cares about the health of the company or its staff , they just want to make more money for the stock owners.
 

Freezie KO

Banned
Jul 9, 2007
12,649
0
970
“Nintendo should aggressively make acquisitions or increase returns to its shareholders,” said Ii, president of Tokyo-based Commons Asset Management Inc., which held 2,200 Nintendo shares as of February

Shareholder says to increase returns to shareholders.
 

squicken

Member
Dec 27, 2005
48,412
0
0
They are totally screwed in the portable market, but expecting this current leadership to do something as technologically challenging as enter the cell phone market is absurd. They are so out of touch on convergence devices they aren't giving Wii 2 DVD or BR playback.

Iwata was awesome and made a lot of people money, but he's probably not the guy to get them out of this.
 

FunkyMunkey

Banned
Aug 26, 2006
6,937
0
0
Everytime someone compares lenghty full-fledged videogames to the iphone's or i-anything's "apps", I realize my palm and face would need to be planetary sized to accurately represent the ridiculousness.

This article is full of nonsensical BS.
 

watershed

Banned
Mar 12, 2011
19,593
0
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I don't think it will happen any time soon but I can see Nintendo doing a hardware partnership in the future.
 

legend166

Member
Jan 31, 2007
19,429
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0
Investors, in this case, are stupid.

Nintendo will probably sell 10 million copies of Mario on 3DS. And that's on the low side. That's $400,000,000 in revenue.

No one is making that much money on the App Store.

Nintendo is exactly the kind of company that shouldn't go to the App Store. They can very clearly still demand a premium price for their software. Why would they throw that away to sell things for $1?
 
Aug 14, 2006
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Silver_DNA said:
Do these investors even know what they're investing in?

Nope not really. If you've actually read the Investor Q&A's you's see that a lot of them are complete morons who know nothing about the industry (remember the person who said "I hate video games, they're a waste of time"?)


Kintaro said:
My god. People are on Nintendo like fucking vultures.

Welcome to 1996-2011, where everyone wants Nintendo dead.
 

Eteric Rice

Member
Jan 13, 2007
16,608
160
1,205
eastmen said:
This is the problem with the stock market .

No one cares about the health of the company or its staff , they just want to make more money for the stock owners.

This.

Fuck the stock holders.
 

Monocle

Member
Jan 16, 2008
36,215
12
940
no thx

I'd rather Mario were turned into a series of tabletop games. Seriously.
 

Kintaro

Worships the porcelain goddess
Jun 10, 2004
27,926
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And now we know why Valve stays private and a lot of other companies should consider doing the same.
 

Erethian

Member
Jan 20, 2010
3,253
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0
legend166 said:
Investors, in this case, are stupid.

Nintendo will probably sell 10 million copies of Mario on 3DS. And that's on the low side. That's $400,000,000 in revenue.

No one is making that much money on the App Store.

Nintendo is exactly the kind of company that shouldn't go to the App Store. They can very clearly still demand a premium price for their software. Why would they throw that away to sell things for $1?

Because the argument for smartphones is as much a media narrative as it is something driven by hard data.
 

Alrus

Member
Apr 4, 2010
9,783
0
595
Belgium
squicken said:
They are totally screwed in the portable market, but expecting this current leadership to do something as technologically challenging as enter the cell phone market is absurd. They are so out of touch on convergence devices they aren't giving Wii 2 DVD or BR playback.

Iwata was awesome and made a lot of people money, but he's probably not the guy to get them out of this.

Really? I mean really?
 

Nemo

Will Eat Your Children
Sep 10, 2007
18,377
1
0
I do agree with this
Nintendo should aggressively make acquisitions or increase returns to its shareholders
Go buy some creative devs Nintendo! I want designers to make games using 3D in gameplay and come up with something much more than a menu screen for the WiiU controller. No reason not to use that money
 

Auto_aim1

MeisaMcCaffrey
Jul 7, 2010
12,879
54
940
$10 billion? I thought they had more than $15 billion in cash. But it's funny how times change. A few years ago, no one would have thought Nintendo would have to deal with all this.
 

kadotsu

Banned
Dec 5, 2008
8,580
1
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Germany
Lets hope the App and Facebook market aren't bubbles and have some time before they peak. Because there will be alot of unemployed people if they are. Other than that, every time Nintendo should go 3rd party they rebound quite significantly.
 
Dec 14, 2008
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Kintaro said:
And now we know why Valve stays private and a lot of other companies should consider doing the same.

Valve has a money printing press called Steam. Most companies don't.
 

markot

Banned
Aug 21, 2008
18,838
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I think Nintendo doesnt want to 'nanny' more devs, it hasnt had the best experience with outside acquisitions. I would like them to open up some more dev houses world wide though >.<
 

erlim

yes, that talented of a member
Aug 22, 2005
4,523
1
1,550
Los Angeles
I'm sure once the next hardware cycle starts with wiiU plus this holiday season when mario comes out for 3DS nobody will make speculation like this untill wiiZ and 4DS come out.
 

FunkyMunkey

Banned
Aug 26, 2006
6,937
0
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Takao said:
We should also pressure Microsoft and Sony to stop all hardware development and develop platform agnostic games.

They should just dissolve their game divisions into dev teams focused on .99 cent flash games since that's the future some try to say... LOL
 

Zzoram

Member
Apr 17, 2007
33,493
0
0
Unknown Soldier said:
Valve has a money printing press called Steam. Most companies don't.

They built Steam from scratch without investment money. They earned their position.