• Hey Guest. Check out your NeoGAF Wrapped 2025 results here!

David Jaffe: Iwata "Has Earned The Right to Fail"

Asking Iwata to resign, is imo, a knee-jerk reaction at this point. But he cannot be absolved solely because he previously made so much money for the company that it's 'acceptable' for him to lose some.

That is my point. Iwata has made mistakes and should owe up to it, however it has asked before in another discussion, who would replace him.

Then there is the issue that Iwata has solidified his position by moving around key indivuals to Nintendo's board.

What would change if Iwata steps down only for his replacement was tailored to run the business as a Iwata-yes-man and nothing changes.

Other things need to change about Nintendo first and a leadership change would not necessarily fix it.

John Riccitiello and Koichi Wada stepping down and their replacements didn't improve either EA or SE's situations in terms of how business running, of course there is a significant difference between a 3rd party publisher / developer, and a CEO of a console hardware company.

Getting the right people in place to turn things around is one thing, but is Nintendo too set in their ways to make such changes. It seems to be a precarious situation.

I mean could Katsuhito Yaumachi do this? Does the Yaumachi family still have enough influence over Nintendo to position someone to in Iwata's place if they deem him no longer fit to lead.
 
Iwata clearly misread the market and introduced something that is not distributive like the Wii controller was. Not only was the Gamepad expensive but underutilized in my opinion. Is there still hope for the Wii U. Maybe .. but I feel any efforts done to resurrect the Wii U would further bury Nintendo into more failure. I'm interested in this potential business change that Iwata alluded to. I like that he is not afraid of admitting failure. I just want him to do something about it and not stay on this slippery slope that will eventually lead to his firing/retirement!
 
That is my point. Iwata has made mistakes and should owe up to it, however it has asked before in another discussion, who would replace him.

Then there is the issue that Iwata has solidified his position by moving around key indivuals to Nintendo's board.

What would change if Iwata steps down only for his replacement was tailored to run the business as a Iwata-yes-man and nothing changes.

Other things need to change about Nintendo first and a leadership change would not necessarily fix it.

John Riccitiello and Koichi Wada stepping down and their replacements didn't improve either EA or SE's situations in terms of how business running, of course there is a significant difference between a 3rd party publisher / developer, and a CEO of a console hardware company.

Getting the right people in place to turn things around is one thing, but is Nintendo too set in their ways to make such changes. It seems to be a precarious situation.

I mean could Katsuhito Yaumachi do this? Does the Yaumachi family still have enough influence over Nintendo to position someone to in Iwata's place if they deem him no longer fit to lead.

Let's say this is true and there is now way to turn away from Iwata's "vision". In that case, the company really is doomed, and I look forward to playing the back catalog on third party systems in 10 years when they are bought up for scraps.
 
I think the issue is that over the last year the Wii U has continued to do poorly in sales and seen huge losses with third parties. Even their own first party games haven't sold so well. And instead of accepting and moving to do something, we have seen Iwata seemingly making excuses up until now.

No one sees how the Wii U can be saved, and so they are simply expecting more excuses. What I see is that if Iwata does not make some serious changes here shortly, and show that Nintendo is looking at what fans want instead of ignoring these online campaigns-- he will have no choice but to step down. He can fail, but when both the 3DS and Wii U launched so poorly and a lot of what came out were excuses- I can't fathom huge deals coming tomorrow that will turn things around. All I can expect are more excuses and more "please wait a little longer".
 
When Steve Jobs came back to Apple, the first thing he did was cut every program that wasn't working, and redesign and reintroduce the ones that were working.

That's what's needed at Nintendo. You dump the Wii U now and take the hit. They can coast on the 3DS until the new successor hybrid console/tablet is ready.

Dumping the WiiU wouldn't be a major hit to cash, at this point. I'd take the impairment right now (it's coming either way).
 
Dumping the WiiU wouldn't be a major hit to cash, at this point. I'd take the impairment right now (it's coming either way).

It's a drain on development resources and every dollar spent on marketing is thrown in the trash. Kill it and move development to the next thing, and maybe they have a chance in hell of a decent launch window for once.
 
It's a drain on development resources and every dollar spent on marketing is thrown in the trash. Kill it and move development to the next thing, and maybe they have a chance in hell of a decent launch window for once.
No one would buy it for fear of them dumping it after a year.
 
I think the issue is that over the last year the Wii U has continued to do poorly in sales and seen huge losses with third parties. Even their own first party games haven't sold so well. And instead of accepting and moving to do something, we have seen Iwata seemingly making excuses up until now.

No one sees how the Wii U can be saved, and so they are simply expecting more excuses. What I see is that if Iwata does not make some serious changes here shortly, and show that Nintendo is looking at what fans want instead of ignoring these online campaigns-- he will have no choice but to step down. He can fail, but when both the 3DS and Wii U launched so poorly and a lot of what came out were excuses- I can't fathom huge deals coming tomorrow that will turn things around. All I can expect are more excuses and more "please wait a little longer".
Wii U can be somewhat saved by going after mobile devs. That includes Android, iOS and 3DS ports to Wii U.
 
I kind of agree. Wanting Iwata to resign, just because of one console being a failure, it is a really selfish point of view. He was the one behind the Wii, an amazing console, so IMO he deserves another chance. Yamauchi failed a lot before resigning from his position as the president, I don't see why it should be different to Iwata.

I completely agree with you, and please let me elaborate why.

Iwata took over near the end of the Gamecube era. Nintendo was heading in a downward spiral- each generation selling 20 million LESS consoles than the previous. Since IWATA has taken the reigns, this is what has happened: The Gameboy Advance was a huge success, selling over 80 million units worldwide. And the following generation, Iwata personally oversaw the biggest successful turnaround in Nintendo's history, barring the NES. Home console sales jumped from 23 million to 100 million, while handheld sales doubled to 150 million with the DS. That was Iwata. Neogaf please take a minute and let that soak in......

But it doesn't stop there, oh no. Iwata personally oversaw the turnaround of the 3DS- a system people mocked, laughed at, and dismissed as a failure, but has now gone on to become the fastest selling gaming device to 30 million units sold, is the number one selling gaming device in the world, and is consistently outselling the PS4, Xbox One and Vita combined. All Iwata.

Now we come to the Wii U... One year. That's all it's been is one year, and 5 million units sold. And people are calling for Iwata's resignation? The man who saw the GBA sell over 80 million units? The man who changed Nintendo's fortunes from 23 million sold in the GC era to 100 million with the Wii... that man? The man who oversaw one of the highest selling gaming devices of all time, the DS, with 153 million sold? The man who took the 3DS from the laughing stock of the gaming community to the hottest gaming device in the market? I see...

So, despite his credentials, despite his PROVEN success record, all it takes is one year of floundering sales with the Wii U for people to throw in the towel and lose faith? Really? After all this man has accomplished? People STILL doubt him from one measly year of bad sales on one console, DESPITE the 3DS blatant success? People say Wii was a fluke, well what about GBA? What about DS? What about 3DS?

The 3rd party support issue is not due to Iwata. That's a complex issue with a complicated history. Fact is the 3rd party games don't sell. Nintendo can't feasibly "pay off" every 3rd party or they'd end up in the red pretty quick. And you do it for one, then everyone will demand payment. That's no way to run a business.

Look, people on neogaf are entitled to their opinion, of course. But I believe it's an uninformed opinion my many. People say the Wii U only appeals to the diehard fans. Well, may I remind you all that people said the exact same thing about the 3DS, and now look at it. I'm sorry, but it's too early to deem Iwata incompetent, and it's certainly too early to judge the Wii U. And even IF it never makes it past GC numbers, that still doesn't negate Iwata's accomplishments and history of unprecedented success. Now, if BOTH the 3DS and Wii U were floundering, and the following generation their consoles also floundered, THEN I would have to agree with the majority. Until then, you're unfairly judging the man. Now, there is a line to be drawn, and I won't defend the man forever. But for now, it's much too early to dismiss his ability to lead, considering his past success.

And for the record, Wii U is a perfect system for what Nintendo wants to achieve. They don't design consoles with MS or Sony in mind, nor 3rd parties. Never have. The last thing I'm thinking when I'm playing the Wii U is "the system is weak". Actually, I think about how great the games look. It's all about value. More power means more expensive console, and it also means exponentially more expensive and longer developement. Why are graphics never an issue until we're talking about Wii U. The ONLY games that have better graphics are PS4, Xbox One, and PC games. But Wii U outclasses, or at the minimum it matches, every game that's been made for the last 20 years, and it's leaps and bounds ahead of the Wii. Just because someone else makes something stronger, why does that negate the Wii U experience? Just sayin. The games look fine.

I'm not saying Iwata is perfect, and I'm not saying the Wii U is perfect. What I AM saying is Iwata has EARNED our patience, at least for this generation to completely unfold. And the Wii U was never going to get much AAA 3rd party support, no matter how powerful they made it. The games don't sell. More powerful hardware won't change that. Nobody's asking Jack Tretton to step down over the Vita. So why should we ask Iwata to step down over the Wii U, which has almost surpassed Vita's sales in HALF the time, and has a much richer library? (not a slant against Vita fans- I'm just drawing the comparison to expose the foolishness of condemning Iwata over the Wii U).

Besides, who cares if the Wii U isn't selling? Who cares? I know I don't. Why? Cause it's the funnest console I've ever owned in my life, and I've owned them all. Wii U could sell Wii numbers, and unfortunately it wouldn't rake in ONE SINGLE 3rd party game. Don't believe me? Take a look at the Wii's triple A library, or lack thereof I should say. The games don't sell. That's all there is to it. Nintendo makes 50% of the greatest games in the market. 3rd parties make the other 50%. You either pick a half and roll with it, or you buy 2 consoles for the whole pie. No console provides both.

But with the Wii U, not only do I get the Nintendo half of the greats, I get to play them in unique ways. Wii Sports Club Golf, Pikmin 3, Wii Fit U, Zelda Windwaker HD, Wonderful 101, Super Mario 3D World, Rayman Legends, Call of Duty Ghosts (with Wiimote), Deus Ex, Splinter Cell Blacklist,.... where else are you going to get such a diverse and ranged gaming experience?
 
No one would buy it for fear of them dumping it after a year.

No one is buying it now.

You take a hit on PR, yes. Then you convince people to buy the new system with a great new design and awesome games. Take resources being wasted on Wii U and get them going now on the new system and there is a chance.
 
Jaffe is correct in saying that everyone fails, and all leaders fail. The trick, for owners/shareholders, is to determine if your appointed leader has failed due to insurmountable incompetence or if he still has the qualities you want to run your business but has temporarily fallen off the horse.

This concept isn't new to human beings. We teach our kids everyday, "if you fail, and you will fail, you learn to get back up." We don't teach kids "if you fail, get the fuck out, we'll never believe in you"

Not saying that you treat CEOs with kiddie gloves or be nice to them, but there's still value in people who fail. The key is to use judgment in determining whether those people can recover and do right by you or not. Obviously, those judgments on Iwata vary greatly. Jaffe isn't wrong.
 
A disaster that has the magnitude of the WiiU is the culmination of tremendously bad decisions over the course of several years.
There's no great work left in Iwata, he has become a worthless nutjob who needs to replaced asap, because he sure ain't ever find his way back into reality. Which is only further proven by his enlightenments every couple of months, which everyone else already saw coming for much longer. He didn't take some sort of chance with the WiiU, in some clueless panic mode these guys made a shoddy ripoff of the original Wii, which was supposed to work solely because people liked the first Wii.
I mean, the WiiU is a lost cause anyway, but the longer he and his crew stay, the higher is the chance of more awfully handled products afterwards.
 
Bullshit. No CEO has earned the right to fail.

He needs to get on with reforms to make the company more global or fuck off and let someone else do it. Iwata is just another Nintendo employee at the end of it all and he needs to perform well for the good of the company. No one has the right to fail.

You have to remember something: Our [western] opinion doesn't really matter to Nintendo. It definitely wouldn't matter that they keep switching CEO's if their philosophy of what a video game is stands as rooted in the past as it currently is.

We're speaking of a company that is leading itself to its own downfall by following trends that don't mirror reality anymore. They have actively created new markets (they have that much power) only to arrogantly neglect them afterwards.

Even if some people get upset and angry at their choice making, Nintendo will (for the better or worse) remain a old-school company.

I don't buy this whole -Iwata finally getting a grasp of the global industry- news, unfortunately.
 
The problem isn't that he is failing, that is is just one of the issues. The major issue is that he is delusional and outright lying to shareholders.
 
I'm not calling for Iwata to be removed or anything, but I do think 2014 is a banner year - he needs to submit meaningful solutions and we need to see the start of those changes. If it doesn't put an extreme rocket on the changes, things are just going to get beyond terrible for Nintendo this generation.
 
Not sure if serious.
What would really be useful besides Atlus properties and Yakuza? Remember, a lot of their problems are coming from overseas markets.

So you're saying a Nintendo x Valve team-up is the answer

Outside of my kidding around, there is value in failing. Jaffe is right about that.
 
They need acquisitions.

If they want to get a leg up on software and services they should use the cash reserve and buy Valve. Valve are probably about as big as Activision.

I've never understoof why MS don't buy Valve, maybe the margins are shit.
 
Let's say this is true and there is now way to turn away from Iwata's "vision". In that case, the company really is doomed, and I look forward to playing the back catalog on third party systems in 10 years when they are bought up for scraps.

Lol if you really think Nintendo's franchises like Pokemon, Zelda and Mario can be bought for scraps.
 
They need acquisitions.

If they want to get a leg up on software and services they should use the cash reserve and buy Valve. Valve are probably about as big as Activision.

I've never understoof why MS don't buy Valve, maybe the margins are shit.
Gaben hates Microsoft. Valve is a private company so there is literally zero pressure to sell.
 
Even if he has the right to fail, so what? Now he has exercised that right and has failed.

The relevant question now: is he still the right man to fix it Nintendo going forward? He may have been the right man for the job a decade ago, but that doesn't mean he's the right man for the job now.
 
Sony has turned over almost the entire management team since the PS3 launched. When the PS3 was introduced, Stringer was CEO of Sony, Kutaragi was president of SCEI, Phil Harrison was president of SCE WWS, David Reeves was president of SCEE, and Kaz Hirai was president of SCEA. Hirai is the last man standing.
 
They've been running online games with accounts for years. Close enough.

What?! That is completely different, there's nothing "close enough" about that. Nintendo has been running Club Nintendo with registered purchases for over a decade. Digital and physical games are registered. They need to convert that into a online account system. That is way closer to what people want than a account for online games.
 
No PE interest? Surely Newell doesn't own 100%.

He still owns more than half, according to Forbes:

Gabe Newell is one of the most respected figures in the video game business. Valve Corporation continued its growth despite a lack of major 2012 hits. The Bellevue, Wash. software firm scored in 2011 both as game developer (Portal 2 was a monster hit) and game distributor -- digital distribution platform Steam doubled sales for the seventh straight year, and has over 40 million users. Newell owns more than 50% of privately-held Valve, which he co-founded in 1996 after cashing in stock options earned over a decade producing software for Microsoft.
 
No PE interest? Surely Newell doesn't own 100%.
I believe he owns a majority at least. Plus he and most Valve employees really hate MS. I don't see it. They would be buying a brand and some network infrastructure, the brain drain would be too big.

As for Nintendo TTWO are probably the best candidate. Holding on to the staff will not be easy though. Especially with their command and control structure that emanates from Japan. If NoA and NoE are given autonomy then a wholesale purchase of a western publisher would be possible, in theory at least. Without that autonomy I don't see any possibility of Nintendo purchasing a western publisher.
 
I disagree with Jaffe, Iwata is not failing because he's taking risks in introducing new ideas to the market, he's failing because he's making the same mistakes repeatedly and is too stubborn to learn.

And there are some risks that Iwata is taking that are very mind boggling, like releasing what is essentially a last gen console for such a high price.
 
No PE interest? Surely Newell doesn't own 100%.

I believe Gabe owns over 50% of the company. I don't think we've had exact figures of who owns what in Valve beyond that, but I think I read that what Gabe doesn't own is mostly owned by employees of the company, but I can't find the source on that now. It was from a few years ago.

As for PE, I think Gabe and Mike Harrington founded the company with their own money, since they were both multi-millionaires from their time at Microsoft by that point. That, and considering their first product was a massive success, I'm not even sure there's any PE to speak of.

Edit: Plus what was said above. Valve is kind of a unique company. It would be hard for them to be bought out and adapt to someone else's corporate culture, since Valve kind of just does its own thing. A lot of people would leave the company if for some reason Gabe decided to cash in.
 
Lol... 1 yr ahead, coming from success of Wii, having billions of money, having the best games, having the beat sellers etc and u still fucking fail... No jaffe just no
 
Valve is never going to sell to MS. I bet they would rather lose their chips and become a publisher/developer once again before selling to MS.
 
What?! That is completely different, there's nothing "close enough" about that. Nintendo has been running Club Nintendo with registered purchases for over a decade. Digital and physical games are registered. They need to convert that into a online account system. That is way closer to what people want than a account for online games.

Nintendo is the only company on Planet Earth that sells digital content without a proper account system, so I assume Sega can figure it out by virtue of not being Nintendo.

I don't really care who Nintendo partners with to get it done. They could join forces with Barnes & noble for all I care, just as long as they get with the times.
 
Very reasonable post by Jaffe. I agree.

I don't understand why every step Nintendo make--success and failure alike--is somehow proof they need to hang it up. It's like hardcore gamers have a hard-on for the Big N's demise, and they'll see the signs anywhere at any time. Just bizarre.

And there are some risks that Iwata is taking that are very mind boggling, like releasing what is essentially a last gen console for such a high price.

Yeah, that was such a huge mistake last gen, too, wasn't it?

I fully understand hardcore gamer myopia and why it exists, but sometimes you have to remind yourself both that the universe does not revolve around your wants and preferences and that that's okay, even normal.
 
Top Bottom