Support NeoGAF

[Captain Smoker]

Well, their most important thing should be reduction of production costs, so that the Wii U - hardware starts to be profitable, after this point, there shouldn't be any major things (besides R&D) that hurt their profitability, even if they have low sales/revenues, but I don't expect some GCN-numbers anyway.

Time will tell.


Edit: Is there a breakdown of their hardware components and estimated production cost?

 

[Alexios]

He should put resources into making a new Nintendogs. Not only did it sell gangbusters software-wise, but it pretty much was the turning point for DS sales. I am surprised it has not been done already infact with the 3DS or WiiU, but it is probably too late t this point.

Umm? There's Nintendogs + Cats on 3DS. That type of game was a one (or two or three) time deal, they no longer can attract the mainstream in the same way as flagship titles. At least not with the current conditions, perhaps if something else changes.

 

[Hasney]

***waits for ambassador WiiU games***

I'm with the crowd that says the ambassador thing for Wii U is already in place with these 30p games.

 

[Petrae]

I don't think its an act. In fact I think NoA's problems go to serious culture issues within management.

Look at Black Friday. Reggie basically decided to sell the DS; Wii and WiiU whilst leaving the 3DS blowing in the wind. December tells you that the product and software is there; the rest of the year tells us that NoA isn't managing to catch the consumers attention up front.

They should have done much better. Reggie instead decided handhelds weren't where it was at and went all in with the WiiU; this is despite both NoE and NoJ holding back - probably because Iwata made everyone aware of the software situation months before launch.

NoA is fucking up and when your the one part of the organisation taking a different route and also the least well performing part of the organisation then you are the problem. Blaming Japan is silly; NoA needs to communicate more effectively and strategise better.

Regardless of whether Fils-Aime's decisions are his or whether he's just following orders from HQ, his position dictates that he should bear responsibility for his company's weakening sales performance. Problem is that he doesn't know how to do that; instead, poor performance leads to him being angry and falling back on his "tough guy" routine rather than admitting that there are problems that are being addressed.

 

[Officerrob]

He should put resources into making a new Nintendogs. Not only did it sell gangbusters software-wise, but it pretty much was the turning point for DS sales. I am surprised it has not been done already infact with the 3DS or WiiU, but it is probably too late t this point.

Nintendogs came out on the 3DS, nobody cared

 

[Mpl90]

Still, as said by others, there's a bit of stretch in OP, reading it more carefully.

EDIT: I agree in Nintendo needing to shake up much more NoA. Even if, maybe, they're starting coming back seeing how they're promoting Fire Emblem.

 

[BD1]

The other issue is that Iwata essentially created the audience that will destroy the console market. The "casual gamer" was born under Iwata's watch and made the company very rich. Microsoft and Sony poured millions in resources to chase that customer, to varying degrees of success.

Now the market has ballooned, but the casual gamer has moved on to other things, and the console market is in burst mode.

 

[Daedardus]

Well, maybe the company will be better off when he resigns as President, but I hope he stays at the board.

Just give him a kinda PR-job, still doing the Directs and Iwata asks. Or else I will be sad

 

[Holy Order Sol]

This is madness.

 

[angelfly]

I really like Iwata. If he does step down I can't really imagine who would replace him.

 

[javac]

I guess the whole charm of the Nintendo direct more then anything is seeing the boss of a huge company talking to the viewer and not at the viewer on a level field with content for the fans. Seeing him enthusiastic and excited about these games is very humbling, and seeing him joke around is always fun.

And his patented hair flick...

The guy is just so cool, mondo cool

 

[IrishNinja]

ugh, this'd be sad to see - ive watched kalinske (sp?) and others sink my favorites, iwata knows his shit and put the company on a smart & profitable path, rather than watching them bleed out like sony & others.
anyone who's seen a few Iwata Asks knows he knows more about the industry than most, and i'd hate to see him go...actually, i should prolly bail this thread before the crackheads like Todor & Bera show up

I like Iwata. I don't know if he has the know how to dig Nintendo out of their current position without doing the things they most definitely do not want to do, but I'm not sure many/anybody does. But I like him. I like listening to him speak. I am convinced he comes from an honest, software quality first place. And I think he has a good head on his shoulders for keeping the games fun at Nintendo.

If he were to resign, it would be nice if he stayed on, at the very least to host Nintendo Direct. I like him as a face of Nintendo.

yeah, i'd be down for this, good post

Perhaps Wada could replace him.

oh christ don't even joke

 

[NeonZ]

i think the only way you get a replacement is if you get a person to be a yes-man to the shareholders. nintendo games on phones, technologically competitive systems- that stuff.

i mean, you don't just get rid of a guy because you don't like the way the company is going and then hope you get a guy who's doing pretty much the same thing.

I think Nintendo games on phones is a very different matter from changing the philosophy of console design. Nintendo will make phone games when they give up on their own portable line, and I don't think a new president would just throw it away like that. In fact, I think they'd be more likely to leave consoles if they were going to leave anything.

Anyway, I like reading and watching Iwata speaking, but both the 3DS and WiiU are heavily flawed concepts - not even due to their "lack of power", but because both ended up costing more than necessary in order to push forward "features" that failed to raise much interest from various audiences for them. In fact, those new features had such a cold reception that many people didn't understand they're new systems. If Iwata is the reason Nintendo went in this self destructive direction, he should be kicked out in spite of any past success. They're attempts to recreate the past without actually looking at the reality of things.

 

[Majine]

Kick Reggie if anyone :/

 

[GrotesqueBeauty]

There are seriously some people cheering the idea on? Iwata has had a few missteps, but he also steered Nintendo from steep generation to generation decline before his tenure into ludicrous sales territory. And sales aside he is one of the most insightful corporate figures in the industry, past or present. A few quirks in business philosophy aside I think he's been great for the company.

Also, this is the guy who said Nintendo was out of the games business if Wii didn't outsell Gamecube, and look how that turned out. When he sets his mind to something he seems to be pretty on point. The 3DS turnaround is a good example too. In spite of a shaky start it's very much come into its own. If Nintendo can get a good enough string of releases going I think there's a lot of potential for Wii U. Their working relationship with Platinum bodes well. Now they just need to contract the Rayman Legends team to do a traditional 2D Metroid in 1080p.

 

[Black-Wind]

Time to roll out a full HD console Pokemon.
Would make billions alone.

I really do like to fantasize sometime that Nintendo always has a team of A class devs working with GF on a possible full Pokemon Console game with some kinda online co-op. Something that's just amazing and mind blowing that they always keep at a "almost done" level just in case they have to whip it out and reap the sweet sweet rewards of having a devoted fan-base that's been eating these games up for most of their lives at this point.

Something that's interesting and action packed/ story driven ... geared towards the older fans that's not too mature for the younger fans.

But I know that such an act could mark the death of Pokemon. But ya never know ... we have 2D/ kart Mario on both the consoles and handhelds and both seem to do very well.

How come NoE isn't struggling with this?

I thought that it was because they're a different economy with their own problems and money and exchange rates and such. Shit's not always peaches and roses for every place nor are things black and white ... I'm sure there's more behind it than "NOA JUST LAZY!!! ;(".

 

[antonz]

I like Iwata and don't want to see him have to go but I do think Nintendo in general needs a bit of a shakeup. NCL is way too Japan oriented for the fact Japan makes up such a small portion of the overall pie. NCL would really benefit from a more diverse leadership that includes some non Japanese.

Nintendo is always designing everything with Japan in mind and hoping the rest of the world buys in. Need to start designing with a more global outlook and work on convincing Japan to buy in.

 

[Rebel Leader]

No, mr. Iwata


YOU STAY!

 

[Senator Soufflé]

I assume then in order to save his skin most of those teased Wii U games will be out this year, and that those 10 in house 3DS games will be big hitters.

Where does that leave them with next year though, if they have all the franchises already used?

 

[witchedwiz]

uhm..
they set the bar a BITTTTTT too high for wii u lineup atm :X

 

[Pop-O-Matic]

Put me in charge, I know what the people want:

NSBM iOS
Console Pokemon MMO
Zelda: Modern Warfare
Gears of Metroid: Starring a bald space marine instead of a woman who the audience can't identify with
Fire Emblem: Press a button, something awesome happens edition

I can already see the Fry meme images.

 

[BGBW]

Nintendogs was a 3DS launch title. Those games are done.

The fact he wasn't even aware of it just goes to show how much of an impact the games had. I think the Nintendog crowd weren't too concerned with having a nicer looking dog. I mean the original game didn't look too bad because they were clever with the graphics.

 

[massoluk]

The other issue is that Iwata essentially created the audience that will destroy the console market. The "casual gamer" was born under Iwata's watch and made the company very rich. Microsoft and Sony poured millions in resources to chase that customer, to varying degrees of success.

Now the market has ballooned, but the casual gamer has moved on to other things, and the console market is in burst mode.

Uh.... That's not it. Actually, that's very very wrong. I don't know how you could even argue it that way. The newly found audience save the shrinking industry.

 

[Baki]

http://www.itmedia.co.jp/news/articles/1301/31/news090.html
http://www.nintendo.co.jp/ir/en/library/events/130131/index.html

Translation of ITmedia report follows:

At an analysts' meeting on the 31st, Nintendo President Satoru Iwata (53) implied that there is a possibility that he may resign if he is unable to achieve 100 billion yen (US$1.09963 billion) in operating income for the next fiscal year. The company had recently revised its forecast for operating income for the full year ending March 31, 2013 to -20 billion yen (US$220.144 million), making the goal a high hurdle. Iwata aimed to appeal to investors by putting himself on the line to recover the business.

President Iwata, having seen 2 consecutive years of losses, apologized by saying, "We feel greatly accountable for this severe outlook." He further explained that the basis of meeting the goal by saying, "...we plan to actively release our key titles for Nintendo 3DS which could potentially lead the markets this year."

In the midst of sluggish sales for the next-generation home console Wii U released last year, Iwata also indicated that portable and home console development groups would be merged.

When asked how he would take responsibility if the goal is not met, Iwata emphasized his strong determination by saying, "Please understand that [achieving it] is my commitment."

Iwata, formerly the president of a development company making games for Nintendo, was selected in 2002 at the young age of 43 by former Nintendo President Hiroshi Yamauchi, being called a person who had skill in both game development and administration.

Shares of Nintendo stock were sold off on the Osaka Securities Exchange on the 31st, at one point falling 530 yen from the previous close to 8820 yen.

He shouldn't. Him resigning would return Nintendo to levels worse than GC.

 

[jetsetfluken]

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.

 

[EatChildren]

If I could try and flaw Iwata's direction of Nintendo from the perspective of a casual observer, in relation to market performance, I'd say that Iwata dedicates a lot of his perception of Nintendo towards pleasing fans of Nintendo and those already invested in their products. His focus is keeping customers happy. Produce good software, and always delay it if there's worries of quality. Profusely apologise for software droughts. Manage a series of e-video that communicate directly with fans. Offer incentives and bonuses like ambassador games and NES anniversary discounts. Announce a bunch of things and so on.

If you're a fan of Nintendo, own the hardware, and have a bit of patience, this kind of stuff is great. Yeah, it's annoying having no games to play. But anybody already invested would obviously take a good game over a poor game, and so the delays kind of speak for themselves.

Issue is, what does this mean to everybody else? You know, those people that don't own Nintendo consoles, but need to own Nintendo consoles in order to boost sales? They're not watching Nintendo Direct. They probably haven't even heard of it. They don't care about apologies for software delays, they just see no software. They don't care about bonus titles, because these push for a three figure hardware investment.

Sometimes I think Iwata's direction is noble and honest for gamers who already put their money down, but it's not particularly viable in selling hardware and convincing people on the fence to jump in. For them it's just a case of marketing and software, and too often the software comes too late, is too niche, or just doesn't have the market appeal of other bigger titles in the market.

And when you're fighting two consoles, that's a pretty rough position to be in.

I like Iwata and don't want to see him have to go but I do think Nintendo in general needs a bit of a shakeup. NCL is way too Japan oriented for the fact Japan makes up such a small portion of the overall pie. NCL would really benefit from a more diverse leadership that includes some non Japanese.

Nintendo is always designing everything with Japan in mind and hoping the rest of the world buys in. Need to start designing with a more global outlook and work on convincing Japan to buy in.

Nintendo's problem is an "in house" problem. They're pretty wary and at times ignorant towards an industry, market, culture, and technology moving and evolving around them, that they're a part of and refuse to acknowledge. If they didn't invent it, or they don't see a specific use for it within their own projections, they tend to ignore it. And it's not a good attitude to have, especially in the global market where (as you noted) a Japan oriented company is not going to kill it in the West.

They need to find a balance. Start accepting the world is a bit different these days and make concessions where appropriate. Their failures in online are a perfect example of their behaviour and stubbornness negatively impacting the perception of their systems in the market, as well as the usability for people who own them.

 

[Sandfox]

I assume then in order to save his skin most of those teased Wii U games will be out this year, and that those 10 in house 3DS games will be big hitters.

Where does that leave them with next year though, if they have all the franchises already used?

A few of the game we know about for the Wii U will be coming out next year and Nintendo dig into franchises they haven't touched yet along with new ips and maybe even a sequel to a few of the early ones in another year or so.

 

[Basileus777]

I don't see the WiiU being capable of generating that sort of profit, not when it's still being sold at a loss. They must be counting on a 3DS explosion in the West.

 

[Vampirolol]

I like Iwata. I don't know if he has the know how to dig Nintendo out of their current position without doing the things they most definitely do not want to do, but I'm not sure many/anybody does. But I like him. I like listening to him speak. I am convinced he comes from an honest, software quality first place. And I think he has a good head on his shoulders for keeping the games fun at Nintendo.

If he were to resign, it would be nice if he stayed on, at the very least to host Nintendo Direct. I like him as a face of Nintendo.

This.

 

[Michan]

leave luck to heaven indeed

With the mountain ahead, it doesn't really seem like Iwata is leaving luck to heaven. He needs it now.

 

[grimshawish]

I thought that it was because they're a different economy with they're own problems and money and exchange rates and such. Shit's not always peaches and roses for every place nor are things black and white ... I'm sure there's more behind it than "NOA JUST LAZY!!! ;(".

3DS sales in NoA were a major problem. 3DS isn't doing well in the UK (which btw Nintendo still see as the top market); its their worst in fact. However their doing well enough elsewhere to be far better performing.

Fact is NoE gave everyone a free game; it was basically an XL ambassador programme for both new and old buyers. Meanwhile they've been more aggressive in the bundles and colours.

I have taken things into account and NoA seems the weak link. Who else?
If Iwata is taking personal responsibility then I think NoA is in for a testy time.

 

[efyu_lemonardo]

Reggie is a clown. I''ve long got bored with his act at E3. On the other hand I do like Iwata.

If you want to put the blame on Reggie, blame him for his business decisions, not his persona. Just like Iwata gets blasted with criticism despite his likable persona.

Not every bad decision coming from NoA is because of Reggie, just like not every mistake on NCL's part is Iwata's. I'm sure Reggie has made his share of mistakes (such as Elite Beat Agents, which I was sorry to see underperform), but he's also made some excellent business decisions. Did you know he was the one who pushed for having Wii Sports included with every console at launch?

i think the only way you get a replacement is if you get a person to be a yes-man to the shareholders. nintendo games on phones, technologically competitive systems- that stuff.

i mean, you don't just get rid of a guy because you don't like the way the company is going and then hope you get a guy who's doing pretty much the same thing.

that would be the end of Nintendo. For real. You'd have a few years of mad profits followed by a sharp decline into obscurity once the general audience moves on..
It would make the rollercoaster ride of the last six years look tame.

Yeah, I don't think Iwata resigning would make things better.

same here.

A yes man would be terrible. And yet I can see people going for that rather easily.

sad but true.

Always this negative spin to anything. To me it´s obvious that Iwata is confident to reach this new set goal.

Actually, re-reading the translation, I too think this is what Iwata intended.

What made you think I was hinting at any other pattern?

My apologies for assuming you were on the hate train.

Spoiler

it's that angry look on your avatar

 

[Diablos54]

While Iwata is one of the most knowledgeable people within the industry, 3 straight years of losses for a company like Nintendo is unacceptable. However, I don't know if getting rid of him would be the best idea. I have no doubt that a yes man who panders to the shareholders would end up killing the company or at least would cause major damage. The question is who would they bring in the replace him, is there anyone who has both the developer as well as the business sense he does within the company at the moment? Either way, no matter what happens, he should still be given a major role within the company is he is axed/resigns, because he really knows what he's talking about, and while both the 3DS and the Wii U got off to bad starts, they managed to turn the first around, and I feel he should given given at least another year or two to try and do the same with the Wii U. Plus, losing Nintendo Directs and Iwata Asks would be a huge loss.

And while we're on this subject, Reggie needs to step up now, or GTFO. He's been doing a bad job for at least a year or two.

 

[Jintor]

If I could try and flaw Iwata's direction of Nintendo from the perspective of a casual observer, in relation to market performance, I'd say that Iwata dedicates a lot of his perception of Nintendo towards pleasing fans of Nintendo and those already invested in their products. His focus is keeping customers happy. Produce good software, and always delay it if there's worries of quality. Profusely apologise for software droughts. Manage a series of e-video that communicate directly with fans. Offer incentives and bonuses like ambassador games and NES anniversary discounts. Announce a bunch of things and so on.

If you're a fan of Nintendo, own the hardware, and have a bit of patience, this kind of stuff is great. Yeah, it's annoying having no games to play. But anybody already invested would obviously take a good game over a poor game, and so the delays kind of speak for themselves.

Issue is, what does this mean to everybody else? You know, those people that don't own Nintendo consoles, but need to own Nintendo consoles in order to boost sales? They're not watching Nintendo Direct. They probably haven't even heard of it. They don't care about apologies for software delays, they just see no software. They don't care about bonus titles, because these push for a three figure hardware investment.

Sometimes I think Iwata's direction is noble and honest for gamers who already put their money down, but it's not particularly viable in selling hardware and convincing people on the fence to jump in. For them it's just a case of marketing and software, and too often the software comes too late, is too niche, or just doesn't have the market appeal of other bigger titles in the market.

And when you're fighting two consoles, that's a pretty rough position to be in.

He cares too much, Eats.

 

[wsippel]

Pretty sure he wouldn't have said that if he didn't belief they'd reach that goal.

 

[Petrae]

There are seriously some people cheering the idea on? Iwata has had a few missteps, but he also steered Nintendo from steep generation to generation decline before his tenure into ludicrous sales territory. And sales aside he is one of the most insightful corporate figures in the industry, past or present. A few quirks in business philosophy aside I think he's been great for the company.

I don't think that anyone is "cheering" the idea of an Iwata resignation, but as has been pointed out, weak results have led to ousters and resignations before. I don't at all dispute that Iwata is a great personality; I like that he comes off in his interaction with the public as genuine. (Certainly better than his NOA counterpart)

Realistically, it's probably a year too soon for him to resign. Best to step up and acknowledge responsibility for Nintendo's decline, then let his action plan play out for this fiscal year and see what happens.

If there isn't marked improvement by this time next year, as likable as he is, Iwata needs to step aside.

 

[Azure J]

Are you happy now GAF? =/

I won't laud all of the decisions made under Iwata's reign as completely perfect or above scrutiny, but the man has generally shown an attitude and insight towards games that really should be respected. If he goes, depending on the terms of his departure, gaming as an industry would be losing a pretty big figure imo.

 

[Captain Smoker]

While Iwata is one of the most knowledgeable people within the industry, 3 straight years of losses for a company like Nintendo is unacceptable. However, I don't know if getting rid of him would be the best idea. I have no doubt that a yes man who panders to the shareholders would end up killing the company or at least would cause major damage. The question is who would they bring in the replace him, is there anyone who has both the developer as well as the business sense he does within the company at the moment? Either way, no matter what happens, he should still be given a major role within the company is he is axed/resigns, because he really knows what he's talking about, and while both the 3DS and the Wii U got off to bad starts, they managed to turn the first around, and I feel he should given given at least another year or two to try and do the same with the Wii U.

They only had one fiscal year with losses (the last FY).

If their projections are correct, this year is going to be profitable too (net income).

 

[Kenka]

Perhaps Wada could replace him.

You.

YOU.

Iwata has balls while Wada has none. Wada should have resigned eons ago, and get beaten to the pulp by an army of angry investors.

 

[EatChildren]

He cares too much, Eats.

Right, exactly. I mean, you get those company shills from time to time who talk nothing but shit, or are only interested in success and profit, and I just don't get that from Iwata. I think he does give a shit and honestly does want Nintendo to produce top class software. And I think he does feel bad when customers are unhappy. But that's all irrespective of his actual ability to lead the company in a modern climate.

 

[Deleted member 125677]

Pretty sure he wouldn't have said that if he didn't belief they'd reach that goal.

This. People are already dismissing a 2 month old console that is bound to get a lot of games later this year, and a handheld that hasn't received it's main title (pokemon) yet. Let's see in a year, guys.

 

[ffdgh]

Hmm I wouldn't mind some changes in NoA. They could probably use it.
...Maybe we'll finally get those gba games on 3ds.

 

[Zevenberge]

No! Someone must drop our bombs

(I have no idea what it will mean from a business point of view. It isn't surprising that I don't know the stances of other possible CEO's. From a meme point of view, this is bad. Really bad.)

 

[Hasney]

Hmm I wouldn't mind some changes in NoA. They could probably use it.
...Maybe we'll finally get those gba games on 3ds.

Please shake up NoE first. We need it more.

 

[Tenki]

I hope he doesn't resign. He's smart and has been working at Nintendo all his life, he knows the industry and his focus is on quality. I don't want a business man who hasn't played a game in his entire life as the president, despite all the money he can make.

Also, Nintendo wouldn't be the same without Iwata. And I don't think it'd be better.

 

[Diablos54]

They only had one fiscal year with losses (the last FY).

If their projections are correct, this year is going to be profitable too (net income).

I thought they made a loss this FY as well? So it's still only the 2011 FY that they made a loss? If that's the case, then I think that Iwata resigning/being axed would be a very premature decision to make.

Please shake up NoE first. We need it more.

We got Xenoblade, and a free 3DS game. I'm happy enough for now. Hopefully they keep localizing as many titles as possible, I don't want a return to the dark years.

 

[iamshadowlark]

This is pretty surprising news. Why so much haste? If SCE could turn the PS3 around, how come Nintendo can't when they are in a far better position? I do realize that Sony is far bigger but still.

 

[Captain Chaos]

Guys got balls - I hope he wins out, I like him.

 

[TheGreatMightyPoo]

He's probably just taking accountability like a true leader does and lighting a fire under his own ass.

He's not going anywhere unless things keep getting worse(I don't see them as that bad right now but could be better).

 

[IrishNinja]

maaaan NOE does not need half the shakeup NOA does right now

Eaty, that was a pretty good post. i still say a lot've that can be attributed to

a) replacing yamanuchi
b) watching your former greatest competitor (sega) bleed out & exit the hardware game
c) watching your next biggest competitor (sony) bleed out & drop from absolute domination to burning 2 gens of warchest to barely make 2nd place, i can't imagine that would make a smaller company feel anything but conservative - and given how well that paid off last gen, i likewise can see the stress put on trying to replicate it, even when the circumstances had vastly changed

The fact he wasn't even aware of it just goes to show how much of an impact the games had. I think the Nintendog crowd weren't too concerned with having a nicer looking dog. I mean the original game didn't look too bad because they were clever with the graphics.

see, if we're imagining a nintendogs crowd, i think the'yd be a perfect example of people who stopped paying $40 for games when stuff like that & brain age can be replaced (in terms of casual play) on ios and similar platforms for a great deal less...the zelda crowd will be around, it's this group i think is largely gone