Nintendo to Transition to a Company with Audit/Supervisory Committee, Officer System

  • Thread starter Thread starter Rösti
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I bet this won't be at E3 either.

OMG I lost it! Hahahahaha waiiiiiittttt

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Is it possible that this is a sign that NOA and NOE will have a larger say when decisions are taken, more alike the Yamauchi/Arakawa era and less centralised as in the Iwata's era?
 
Business jargon can be tough sometimes to boil down, but man, some of the doom and gloom in this thread that is pulled out of nothing is quite amazing. I guess it is a Nintendo thread...

Again, for a new page:
  • The Audit and Supervisory Committee does not make the board more "powerful", but rather it separates some of the board's functions (audit, supervision) and delegates to a committee made up of quite a few outside directors. Audit committees help make sure internal controls such as financial controls are adequate.
  • The creation of the executive officer system is simply removing the "execution of operations" from the board's responsibilities and giving it to executive officers. These officers are generally all already part of Nintendo (so they're not bringing more suits in), and they'll more than likely be in charge of a specific area of the business such as hardware or, in the case of someone like Reggie, NoA. This might lead to more power to the officers, but it might not as well as they are accountable to the board.
  • This is a move to make Nintendo more agile and responsive to their business environment. It would make them less Kyoto-centric and more of a Western business.

So is the general idea that decisions will not need approval of the entire board, but instead thers will be sub committees that have full power to make decisions?
 
Is it possible that this is a sign that NOA and NOE will have a larger say when decisions are taken, more alike the Yamauchi/Arakawa era and less centralised as in the Iwata's era?

Not clear yet, but I'm certainly hoping that ends up happening.
 
I wonder if this is a reaction to whatever caused the NX delay.

The NX "delay" is officially due to them wanting to have games at launch, which is understandable. I could see that this whole plan in shakeup of corporate structure/governance also having an impact on not only the release date, but probably the quietness from Nintendo overall.

So is the general idea that decisions will not need approval of the entire board, but instead thers will be sub committees that have full power to make decisions?

I do believe that COULD be the case. The key word here being:

2. Executive Officer System
(1) Reason for Introduction
By separating the management decision-making and supervisory functions from the execution of
operations and accelerating the delegation of authority to execute operations, the Company aims to
clarify the responsibility for the execution of operations and establish a more flexible management
structure which can appropriately and swiftly respond to the rapidly changing business environment.

Hopefully this means that the executive officers at least can make decisions without the full approval of the board as it has been in the past. (Kyoto-centric business that RedSwirl has talked about)

The name "Audit and Supervisory Committee" itself is pretty vague and since they haven't clarified anything (again, this is just an announcement), it's possible that this committee will be the supervisory force in approving decisions. Given the "audit" part, however, this might not be the case given the outside directors.

There's not a lot of information here and it's mostly speculation until if and when Nintendo clarifies. I certainly don't think they're obligated to, so this might be all we get officially.
 
Hopefully with the new President having spent a lot of time in the US and been president of NOA, he'll see more value in prioritizing the western market where the vast majority of game sales occur. And I don't mean they start poppping out western style AAA games, just that they finally get online on part with the competition, do their marketing in a way that appeals to westerners who aren't already die hards etc.

If you look at the numbers, Nintendo did pretty well in North America when NOA had power. 20+ million N64 consoles in North America which wasn't much off the SNES numbers despite stronger competition from Sony. It was Japan & Europe where they got destroyed.

Kimishima was at the Pokemon company then, so he should remember that era and he certainly would know everyone at NOA and their frustrations in dealing with Kyoto.
 
Is it possible that this is a sign that NOA and NOE will have a larger say when decisions are taken, more alike the Yamauchi/Arakawa era and less centralised as in the Iwata's era?

I guess this will depend on how much leeway is given to the executive committee. Reggie and Shibata are lowest in the committee hierarchy, but they are still part of NCL's top management now so that might mean more power for them. However, if the executive committee isn't really that autonomous and most management decisions will have to go through the board of directors, I fear that nothing much is going to change in that regard. After all, the board is still exclusively staffed with NCL personnel (as well as the outside directors).
 
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