Nintendo: "We are thinking about a new business structure"

[mvaliz]

So, I read the news earlier today - but was shocked that nobody else has made a thread about it (which is, to me, another bad sign…)

http://www.computerandvideogames.com...ess-structure/

http://online.wsj.com/news/articles/...25760899958956

http://www.bloomberg.com/news/2014-0...i-u-games.html

Basically, Nintendo has declared major losses, a 15% drop in stock sales, and - most importantly - that basically they’re going to now take some new changes in how they do things, that their current status quo is no longer viable for a long term future.

"We cannot continue a business without winning"

""We are thinking about a new business structure," Iwata added. "Given the expansion of smart devices, we are naturally studying how smart devices can be used to grow the game-player business. It's not as simple as enabling Mario to move on a smartphone.""

So, I wanted to ask everybody, what do how do you think Nintendo will change? What do you WANT Nintendo to change?

Satoru Iwata said that the way people use their time, lifestyles, who they are have changed, and Nintendo cannot stay in one place and propose something that surprises the customers. Iwata acknowledged that Nintendo misread the markets, and they are thinking about a new business structure.

As for Big-N fans, don’t be insulted by this - as it’s YOUR chance to help bring about an opportunity to see Nintendo bring itself back in a new light.

For me, personally, I’ve always stated the benefits of them going exclusively third-party for Sony/MS while dividing their Home Console/Handheld resources into development of games and possibly a new handheld/smartphone device. I’d rather see a new GENERATION DEFINING Legend of Zelda on PS4 than another rushed-out, gimmick-filled mediocre Zelda on the Wii-U.

[Vespian]

I did expect this, but..not yet. I think the main issue with Nintendo is, that they're still focussing on kids. Or at least, not adults. The few Pokemon fans that could be considered adults are still only a grain of sand in a desert of games, while it doesn't have to be that way. They have excellent writers, excellent storytellers, but they're satisfied with giving their old games a new paintjob and call it 2, 3, or 4, rather than actually investing in new material. (I suddenly realize I'm also talking about EA).

If we take a moment and make a side-step to anime and manga (you don't have to like it), where you have mainstream material like Naruto, Bleach, One Piece, Fairy Tail, etc. There's also a shitload of really good stories that get very little attention. Most of the time, this attention is caused by the magazines that publish this material and the lack of attention means magazines don't invest in stories, but in DBZ-alike powerhouses.

Nintendo used to be the company that brought you games that touched your heart. Now they're the company that sells you the same game over and over and over, without any intellectual development whatsoever. They need to go back to their roots, hire people with flashing fantasy and imagination and invest in those new ideas. Many will fail, but some will be that Zelda of the next generation.

[barackopala]

If they expand their games for a better online experience (and online shopping) they'll go toe to toe, currently their online selling offerings are bad, abysmally bad.

[Vespian]

If they expand their games for a better online experience (and online shopping) they'll go toe to toe, currently their online selling offerings are bad, abysmally bad.

Yet, your signature basically quotes what I said

[ddsad2212]

I would love if they aimed more at software and less toward hardware. All those great exclusives out on different platforms would be great. But I highly doubt that

[Collegeguy]

[Rennadrel]

Bah, I am totally in disagreement with their notions that they need to look at smart devices as part of the future. The 3DS is on pace to outsell the DS in the same length of time, so I don't think they need to do anything like that. They need to improve their online infrastructure with their systems for one thing. The integration of phone features would be a terrible idea, it didn't work for the Vita and N-Gage, it won't work for them. No, Nintendo's biggest problem has been their console approach. They need to give the Wii U more time but ultimately they need to come out with something that will get the 3rd party studios back on their side. And their next system has to be more powerful then the current gen by a long shot, if they can come up with a system that might draw the interest of a studio like RSI and potentially getting a high end game like Star Citizen using motion controls as well as traditional controls, could be a real big deal for them. Of course, they have to compete for high end performance.

[Pull My Finger]

Well, CoD as a positive example of how Nintendo should try to innovate more is ... *cough".

I don't see the big innovation anywhere else on the console market. Nintendo may be rehashing their Zelda and Mario franchises over and over again, but on the other hand, whenever a new Zelda or Mario is released, it pretty much puts everything else in their place gameplay wise, so, yeah.

I think that Nintendo's problems arise from the fact that they perhaps neglected the demographic of "core gamers" too much. They have this "children's game company" image about them that they didn't consequently try to get rid of. I think that's hurting them in the long run, mainly because their consoles are becoming less and less attractive for 3rd party developers. Image- and performance wise. I think the last decade has proven that no matter how good their in-house products are, it's not enough to keep a healthy business running.

[Mothhive]

I very much doubt this would happen, as awesome as it would be, but maybe they should start releasing all their games on PC as well as on their hardware? That would give them a massive boost in game sales, but wouldn't hurt their console sales as much as releasing on other consoles would. If that doesn't get them into a profitable position, then they could release on the consoles and smart phones too, but at that point, they'd probably be heading the way of Sega and become software only.

[mvaliz]

Bah, I am totally in disagreement with their notions that they need to look at smart devices as part of the future. The 3DS is on pace to outsell the DS in the same length of time, so I don't think they need to do anything like that. [snip]

That fact doesn't mean jack-spit if the 3DS is 10x more expensive to produce than the DS... not to mention that Nintendo has also said that the 3DS, while not Wii-U bad, is still not hitting their sales target numbers, which kinda confirms how expensive it was to make if their sales statistics required it to be MUCH higher than the DS.

- - - Updated - - -

I very much doubt this would happen, as awesome as it would be, but maybe they should start releasing all their games on PC as well as on their hardware? That would give them a massive boost in game sales, but wouldn't hurt their console sales as much as releasing on other consoles would. If that doesn't get them into a profitable position, then they could release on the consoles and smart phones too, but at that point, they'd probably be heading the way of Sega and become software only.

Son, you've never been to Japan - have you? :P

Ever wonder why we never hear about sales of WoW in Japan? Because there is no WoW-Japan... There IS no PC gaming market in Japan at all.

Nintendo will not make games for a market that does not or barely exists in Japan.

[Vespian]

Un-fucking-believable that they can stand there and say that releasing a Mario game, number 99999, is "great". No it's not you morons. They're pretending Mario can't compete due to the massive amount of indie titles, which is bullshit, it's because Mario only sells to people that are stuck in 1990!! Re-hashing of Nintendo titles is Nintendo's number 1 problem. They don't have enough titles to keep it unique!!

Actually, the ultra nerd in the sloppy T-Shirt (who seems to be way in his 30's (learn to fucking dress yourself)) in this video is making the point for me. Grow the fuck up Nintendo.

Wow, so many fucks in one piece. I've never actually said that many before, except in the ban appeal forum of course.

[hellhamster]

Long time Nintendo fan here, I think it's obvious what they need to do to get themselves back on track. The other consoles are not doing anything really innovative so I think Nintendo can get back on the Epona!

1. 3rd party support, it has to happen. It doesn't have to be Sony-like, just a handful developers with great original ideas and stories (like Rareware or Squaresoft in the 90's) enough to make new and awesome generation-defining franchises.
2. Better and more online uuuh stuff!
3. More funds/ideas/whatever thrown into the big Nintendo franchises, especially when they are intended for non-handheld consoles. I mean the new Zelda and Mario are fun, but it feels like it's the same over and over again. Like people said, hardware is fine, it's games that are actually not that attractive anymore. And again, it's not that games on the other consoles are really that uber compared, it's basically a stagnant era in console videogames. The other consoles win because they have basically a different playerbase.
4. Doesn't necessarily have to throw away the "games for kids" image they have, but some mature titles will help get people interested in buying the console for themselves instead of their kids, which is basically what happens right now.

[Remilia]

Son, you've never been to Japan - have you? :P

Ever wonder why we never hear about sales of WoW in Japan? Because there is no WoW-Japan... There IS no PC gaming market in Japan at all.

Nintendo will not make games for a market that does not or barely exists in Japan.

I have! And you're wrong. Except the games aren't exactly what you'd expect.

[mvaliz]

I have! And you're wrong. Except the games aren't exactly what you'd expect.

..and do you think Nintendo a) would make enough money on that limited market to sustain themselves and a dying console, and b) make "THOSE" kind of PC Japanese games :P

[Chelly]

They're pretending Mario can't compete due to the massive amount of indie titles, which is bullshit, it's because Mario only sells to people that are stuck in 1990!! Re-hashing of Nintendo titles is Nintendo's number 1 problem. They don't have enough titles to keep it unique!!

[Vespian]

3. More funds/ideas/whatever thrown into the big Nintendo franchises, especially when they are intended for non-handheld consoles. I mean the new Zelda and Mario are fun, but it feels like it's the same over and over again. Like people said, hardware is fine, it's games that are actually not that attractive anymore. And again, it's not that games on the other consoles are really that uber compared, it's basically a stagnant era in console videogames.

That does.

[Rennadrel]

Well, CoD as a positive example of how Nintendo should try to innovate more is ... *cough".

I don't see the big innovation anywhere else on the console market. Nintendo may be rehashing their Zelda and Mario franchises over and over again, but on the other hand, whenever a new Zelda or Mario is released, it pretty much puts everything else in their place gameplay wise, so, yeah.

I think that Nintendo's problems arise from the fact that they perhaps neglected the demographic of "core gamers" too much. They have this "children's game company" image about them that they didn't consequently try to get rid of. I think that's hurting them in the long run, mainly because their consoles are becoming less and less attractive for 3rd party developers. Image- and performance wise. I think the last decade has proven that no matter how good their in-house products are, it's not enough to keep a healthy business running.

Pretty much. They need to get back to basics with their next set of systems and just do something that is appealing to core players. They will always be number one in the portable market though. Touch screen based gaming is not a sustainable business, plain and simple, and the reason they made the 2DS was to increase profits, they aren't making as much money off the 3DS as they could be. At the end of the day, the DS as a platform is a good mix of touch screens gaming and controls. Get rid of the 3D next time around and make a more powerful core gamer focused system, it will sell if it has a broader appeal in games.

[Remilia]

..and do you think Nintendo a) would make enough money on that limited market to sustain themselves and a dying console, and b) make "THOSE" kind of PC Japanese games :P

Who knows. Granted I know what you mean by those but they're not all that. In comparison to console yes they are dwarfed, but they're still there.

[Thelxi]

I just spent way too much buying a 3dsxl. The problem more likely lies in what they do with my money rather than me spending enough money on them. How much money were they swimming in when they produced ocarina of time anyway.

[mvaliz]

Long time Nintendo fan here, I think it's obvious what they need to do to get themselves back on track. The other consoles are not doing anything really innovative so I think Nintendo can get back on the Epona!

1. 3rd party support, it has to happen. It doesn't have to be Sony-like, just a handful developers with great original ideas and stories (like Rareware in the 90's) enough to make new and awesome generation-defining franchises.
2. Better and more online uuuh stuff!
3. More funds/ideas/whatever thrown into the big Nintendo franchises, especially when they are intended for non-handheld consoles. I mean the new Zelda and Mario are fun, but it feels like it's the same over and over again. Like people said, hardware is fine, it's games that are actually not that attractive anymore. And again, it's not that games on the other consoles are really that uber compared, it's basically a stagnant era in console videogames.

The 1'st point you made actually was nintendo's big downfall in the first place.

Not sure who was around for this, but the big downward spiral happend with Nintendo when the N64 came out. Yes, Goldeneye, Ocarinas and all that - those were nice, but the sales did NOT hit the SNES/NES era, and here's why.

The N64 was gawd-aweful to program for, and was INCREDIBLY expensive to develop for. The dev-kit was a massive hulking multi-thousand dollar tower, and you also had to purchase VERY expensive cartriges from Nintendo, with no refund.

Then, Sony PS1 came along and said "Here's your dev kit" which was a tiny chip you installed directly into your computer, and their CD format allowed them to produce a game for less than a dime as opposed cartridge price - oh, and did I mentioned they offered a refund for unsold copies to devs back then?

All the devs FLOCKED to Sony at that point, abandoning Nintendo altogether.

Since then, Nintendo has been trying to "innovate" but they just do the controller, which PISSES off developers because they can't easily port over their games for the main console systems they're used to developing for, where their main bread-and-butter comes from.

3rd parties was their key to being spectacularly awesome durring the NES/SNES era. How many Zelda games did they make for NES? 2 (though people try to not count the second one...), how many for SNES - ONE!!!

Why could Nintendo do this? Because they had third party support to rest on while they TOOK THEIR TIME to develop game franchises. A new Zelda game back then was a massive event (much like how Elder Scrolls is today) - BECAUSE they took their time. They could afford to...

Now, they have to spit out a new Zelda practically every year - weither it's a rehash or for the 3DS, just to keep sales figures up - all while having to make ALL other key franchises sped up too.