Last month, 1up reported that Nintendo stockholders have begun to encourage Nintendo to consider moving current titles or making new titles for current smartphones on the market. The company has been falling on rough financial times because the 3DS has not sold as well as expected and the Wii is no longer bringing in as much profit as it used to. This was quickly dismissed by a Nintendo of America spokesperson, stating:
“Nintendo has no intention or plans of publishing its IP on non-Nintendo platforms.”
According to Eurogamer, Nintendo’s CEO Satoru Iwata gave an interview late last week to Japanese news site Nikkei, in which he stated:
“This is absolutely not under consideration. If we did this, Nintendo would cease to be Nintendo. [Making mobile games is] probably the correct decision in the sense that the moment we started to release games on smartphones we’d make profits. However, I believe my responsibility is not to short-term profits, but to Nintendo’s mid- and long-term competitive strength.”
The Nintendo CEO is showing his confidence in he decision by taking a 50 percent pay cut along with other executives taking 20-30 percent by taking responsibility for the disappointing handheld, but investors do not share their optimism. According to Reuters, Nintendo’s stock had dropped another five percent after their 3DS event in Tokyo last week. The company’s stock has fallen approximately 50 percent this year in reaction to slow sales of the new 3DS handheld in spite of the price drop.
Analysis: The Nintendo CEO is obviously trying to move the company forward, even though they’ve taken a major setback with the 3DS handheld. Nintendo is still a strong name even with the 3DS cloud hanging over them. I agree with Iwata: there is no reason to consider selling off shiny bits of Nintendo just so they can make a quick buck for some cheap-ass investors.
The Game Cube wasn’t a huge success, either, but Iwata did bring it back and I believe he can do it again. Where I think he failed, though, was believing the Hollywood hype about 3D movies and using box office numbers as a yard stick to plan for the 3DS. I have no direct proof stating this as fact, let’s make that clear. It’s more of an educated guess based on where the market was when the 3DS was in development and where it is now.
I know we all can tell he’s being optimistic, but by the time the Wii U is released, Nintendo had better recover in a reasonable amount of time or I can guarantee those investors won’t sit by idly in the wake of another failure. I have confidence it can be turned around considering past performance. But honestly, Iwata, if you want to keep your job and Nintendo from falling apart, the Wii U or whatever else is planned in the midterm had better hit a home run.