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[NeonZ]

I can't be the only one who thinks replacing Iwata despite his fuck ups would make Nintendo's situation FAR worse, can I?

Personally, at this point, I think even a completely uninspired CEO that just made Nintendo copy Sony and Microsoft would be better than Iwata, who doesn't seem to have any "inspiration" either aside from the initial motion control concept for the Wii. Doesn't matter who takes over the company, they won't start making games for iOS or something unless they're leaving the hardware business completely. So, I can't see the situation getting worse.

is it though? didn't Iwata say himself he'll resign if things don't improve??

He only said that he'd take responsibility, nothing specific regarding resignation. It does imply it as one of the possible ways of taking responsibility though, I guess...

 

[javac]

First off you don't inflate your targets, shareholders punish you when you fail to meet a target so you set a target you think you can reach. Not to mention each time they fail to meet a sales target the cut their prediction for the next quarter. And then again the fail to meet that reduced target.

I understand that, and while writing that I was thinking the same thing. But:

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)

Sounds unobtainable to me. You've got more chance of finding that rare mineral in Avatar then achieving this. Unless I'm missing something.

 

[Wildstar75]

I think his resignation would be overreacting. But they have blown two E3s and two launches. They have recovered with 3DS but I think WiiU has an uphill battle to fight against Orbis and Durango. The Wii was a hit because it brought new levels of accessibility to gaming. The WiiU doesnt really do that. At least at this point they have shown nothing to prove it does. Also the WiiU wont be able to compete with the power of the big boys or the 3rd party support or the media capabilities. I think Nintendo knows what's up....now the quesiton is what are they going to do about it and is it too late for this generation?

 

[Chittagong]

Shigeru Miyamoto as CEO, believe

 

[squid]

Hyperbole, hyperbole everywhere.

Seriously, I can't help but burst into laughter at some absurd comments in this thread. If Iwata, the guy who steadied the 3DS after a poor launch, was kicked out because of a poor WiiU launch, how would that help Nintendos situation? Nintendo would be an absolute mess if they were that trigger happy.

 

[grimshawish]

I see it all the time. A company gets hit by a scandal, so the CEO or someone high up resigns. It's ridiculous.

Usually these 'scandals' put their ability to be trusted into question.
Many CEO's keep their job when the market they are competing in is changing around them.
Their needed.

 

[cyberheater]

So has Iwata resigned yet.

I'm left with a overpriced console with almost no games to play. Totally his fault.

 

[BrokenEchelon]

Actually, no it's not.

At this point it's 10k units ahead of the PS3 and 100k units ahead of the 360 at the same point in it's lifetime.

Did January's numbers suck? Absolutely. But it's not way behind the PS3 or the 360. Truth be told, the 1st few months on the market, even the PS3 was selling ahead of the 360.

360
Nov 2005 - 326k
Dec 2005 - 281k
Jan 2006 - 231k
Total - 838k

PS3
Nov 2006 - 197k
Dec 2006 - 490k
Jan 2007 - 243k
Total - 930k

Wii U
Nov 2012 - 425k
Dec 2012 - 460k
Jan 2013 - 55k
Total - 940k

No one knows how the markets will react to the system, and judging the system based on 3 months of data is completely asinine. It's not until year 2 of each console that you begin to see the general direction it will be going in.

Those January numbers are a whole lot more telling than the first two months of each system. Any new hardware in this industry is going to more or less sell out the first shipment, especially during the holiday season.

 

[Kimawolf]

Iwata shouldn't resign, not by a long shot. He SAVED the company, turned them around. The thing he should change though it getting much more aggressive in advertising and not being "above" it all. The concept is not flawed, but they just didn't sell it like at all, to anyone.

That's the problem they simply are not NEARLY aggressive enough anymore. Nintendo in the 90s had aggressive advertising, sometimes even edgy at times. Where's the jabs at the competition to hype up your base? You need to run it like a presidential campaign, excite and evangelize the base, run biting ads on TV like they used to, constantly hit people over the head with the Wii U. If you won't brute force it with pure power, you have to do it that way. Now maybe as long as Iwata is there they can't get that aggressive stance back, and if not then yeah perhaps im wrong and he does need to go.

 

[Dave Meltzer]

Iwata shouldn't resign, not by a long shot. He SAVED the company, turned them around. The thing he should change though it getting much more aggressive in advertising and not being "above" it all. The concept is not flawed, but they just didn't sell it like at all, to anyone.

The concept for two consoles in a row has been flawed now. That falls directly on his shoulders. 3DS was rescued cos they just ignored the gimmick and sold it as another DS, but Wii U can't compete if it's just a video game console.

 

[qizah]

The man who basically made the whole motion gaming thing huge; who established a console described as "two Gamecubes duct-taped together" as the winner of a whole generation sales wise; who pushed the idea of having two screens on a handheld device; who brought the 3DS back from the death - has no idea what he is doing?

Their Europe/USA stuff needs to be fixed, but he is still one of the most capable CEOs out there, hands down - so many underestimate how much money has gone into Nintendo's wallets since Iwata took over, crazy

Jumping to conclusions and the hyperbole seems like the norm for a new platform launch. Sure, the Wii U isn't doing so well right now but Nintendo isn't going to sit back and let it happen. They'll do something and who knows, maybe they'll turn it around like they did with the 3DS. Plus, Nintendo set themselves up for failure no matter what considering how well the Wii sold and the rate at which it sold hardware. The biggest problem with the Wii U is that it doesn't have games out now to move hardware, NSMBU can only move so many units. Once more titles roll out it'll do fine.

Plus, god damn people it's been like 3 months. Things change year over year. Look at the PS3 starting to get better titles midway through it's life cycle. Look at the PSP getting a boost in Japan towards the end of that platforms cycle. Look at the 360 getting a second boost post-kinect. Look at the Wii going on a downward spiral after hitting a peak in 2010.

 

[Aquamarine]

The man who basically made the whole motion gaming thing huge; who established a console described as "two Gamecubes duct-taped together" as the winner of a whole generation sales wise; who pushed the idea of having two screens on a handheld device; who brought the 3DS back from the death - has no idea what he is doing?

Their Europe/USA stuff needs to be fixed, but he is still one of the most capable CEOs out there, hands down - so many underestimate how much money has gone into Nintendo's wallets since Iwata took over, crazy

Investors only care about the future. If you're doing a poor job now, and it doesn't improve, you're out.

 

[DXB-KNIGHT]

Yesh cut the man some slack, he said he would turn things around or leave next year.

 

[squid]

The concept for two consoles in a row has been flawed now. That falls directly on his shoulders. 3DS was rescued cos they just ignored the gimmick and sold it as another DS, but Wii U can't compete if it's just a video game console.

Gaf: Nintendo need to stop this gimmicky crap and just give us a regular gaming machine!
*Nintendo ignores 3DS gimmick, improves its reception commercially and with gamers*
Gaf: Pfft. Doesn't count, it's a flawed concept. They're ignoring its gimmick! It's pretty much just a regular gaming machine now!

 

[NeonZ]

Seriously, I can't help but burst into laughter at some absurd comments in this thread. If Iwata, the guy who steadied the 3DS after a poor launch, was kicked out because of a poor WiiU launch, how would that help Nintendos situation? Nintendo would be an absolute mess if they were that trigger happy.

But Iwata also was the one who created these poor launches in the first place. The 3DS was stabilized, but it resulted in Nintendo eating losses for a gimmick that people clearly didn't care about much in the end (glassless 3d gaming).

The Wii U is in the same situation, only the gimmick costs even more this time, and seems to be met with even more apathy. His core concepts for products that should last years have been really problematic. Yes, he got the Wii right, and the original DS turned around under him, but in recent years he hasn't shown that ability again at all.

The Wii itself died under his watch and now there have been two failed launches, with one of them only turning around after Nintendo decided to pay for their own addition, and even then it hasn't become a great success outside of Japan. Nintendo doesn't try to compete graphically with Sony and Microsoft supposedly because they couldn't afford to sponsor those consoles, but the two recent Iwata launches have resulted in situations where Nintendo has to pay/sponsor for the "concepts" they've added without anyone asking for them. That's why I think even someone who just looked at Sony and Microsoft and ripped them off would be better for the company than the current Iwata.

Investors only care about the future. If you're doing a poor job now, and it doesn't improve, you're out.

Most investors have actually no voting power over Nintendo, which is what might keep Iwata there.

 

[grimshawish]

The concept for two consoles in a row has been flawed now. That falls directly on his shoulders. 3DS was rescued cos they just ignored the gimmick and sold it as another DS, but Wii U can't compete if it's just a video game console.

People keep saying 'they ignored the gimmick' when the game that kickstarted the 3DS was called 3D Land.

People need to stop revising history.

Investors only care about the future. If you're doing a poor job now, and it doesn't improve, you're out.

Only if they think someone else can do better with the same company.

 

[JoeM86]

Yesh cut the man some slack, he said he would turn things around or leave next year.

No he didn't. He said he'd take responsibility.

 

[Shion]

All I know is that if Iwata is gone, Nintendo as we know it is too. And that's a pretty depressing thought.

Nintendo as we knew them before Iwata was also gone when he took over.

Buy some franchises: Banjo and Sonic

Sonic and Banjo?

If anything, one of Nintendo's biggest problems (software-wise) is that they don't have enough diversity.

Sonic and Banjo will only sell to the existing Nintendo audience, they won't help Nintendo to widen their appeal.

 

[Dave Meltzer]

Gaf: Nintendo need to stop this gimmicky crap and just give us a regular gaming machine!
*Nintendo ignores 3DS gimmick, improves its reception commercially and with gamers*
Gaf: Pfft. Doesn't count, it's a flawed concept. They're ignoring its gimmick! It's pretty much just a regular gaming machine now!

Why are you ignoring my point and going off on some weird GAF attack?

I have no problem with the 3DS as a system. I don't even mind the 3D, I like to turn it on. I'm saying that 3DS is able to survive without a strong gimmick because the competition around it isn't as strong and they still have the type of software that can sell a system of t hat price range. I don't think Wii U is in the same situation.

 

[Erethian]

That's why I think even someone who just looked at Sony and Microsoft and ripped them off would be better for the company than the current Iwata.

Except this won't happen, because it's not the direction that shareholders and outside commentators have been pushing for. Not to mention it isn't a viable strategy for Nintendo, economically.

The trend with Japanese companies is definitely social/mobile/tablet offerings, which is why all the major publishers there have it as a core part of their business, and the one reliable growth area. You don't fire a guy to replace him with someone who is going to take the company in what is seen as a long-term dead end. Especially when it would be seen with the performance of the 3DS that Nintendo's strongest asset is in handheld development, whereas the console business would be the first thing to ditch if someone was to come in and "cut the fat", so to speak.

 

[Omegasquash]

Gaf: Nintendo need to stop this gimmicky crap and just give us a regular gaming machine!
*Nintendo ignores 3DS gimmick, improves its reception commercially and with gamers*
Gaf: Pfft. Doesn't count, it's a flawed concept. They're ignoring its gimmick! It's pretty much just a regular gaming machine now!

See, I'm pretty thankful that the focus isn't on 3D anymore. Sure it's in there, but the games are coming steady and they've been good by most standards. I'm happier now with it than I was before, anyway.

 

[Rocky]

People keep saying 'they ignored the gimmick' when the game that kickstarted the 3DS was called 3D Land.

People need to stop revising history.



Only if they think someone else can do better with the same company.

I think the $80 price drop kick started it more than 3D land did.

 

[grimshawish]

I have no problem with the 3DS as a system. I don't even mind the 3D, I like to turn it on. I'm saying that 3DS is able to survive without a strong gimmick because the competition around it isn't as strong and they still have the type of software that can sell a system of t hat price range. I don't think Wii U is in the same situation.

The 3D visuals remain a big part of the games being made though.
Its not being used as a gimmick and never has; Nintendo uses it as an asset.

I think the $80 price drop kick started it more than 3D land did.

3D Land sent it skyward with the help of a few friends. Especially worldwide.
Price cut was neccessary though; but I don't see how this has anything to do with Nintendo using or not using 3D.

 

[squid]

But Iwata also was the one who created these poor launches in the first place. The 3DS was stabilized, but it resulted in Nintendo eating losses for a gimmick that people clearly didn't care about much in the end (glassless 3d gaming).

The Wii U is in the same situation, only the gimmick costs even more this time, and seems to be met with even more apathy. His core concepts for products that should last years have been really problematic. Yes, he got the Wii right, and the original DS turned around under him, but in recent years he hasn't shown that ability again at all.

The Wii itself died under his watch and now there have been two failed launches, with one of them only turning around after Nintendo decided to pay for their own addition, and even then it hasn't become a great success outside of Japan. Nintendo doesn't try to compete graphically with Sony and Microsoft supposedly because they couldn't afford to sponsor those consoles, but the two recent Iwata launches have resulted in situations where Nintendo has to pay for the "concepts" they've added without anyone asking for them anyway. That's why I think even someone who just looked at Sony and Microsoft and ripped them off would be better for the company than the current Iwata.



Most investors have actually no voting power over Nintendo, which is what might keep Iwata there.

Don't get me wrong, I don't think Iwata should be given too much slack. If Nintendo continue to flounder and can't find their footing, then Iwata, as CEO, has to take responsibility. But I'm just saying, the WiiU is 3 months old... 3 MONTHS. At least give him a chance to react to its performance and right the ship (he's done it before).

 

[dacuk]

Iwata will stay as Nintendo's Boss as much as Yamauchi wishes so, not a minute less, not a minute more

 

[Tobor]

It really is a very American and European thing to think that if something messes up, the person should resign. It's a very surrenderish attitude.

It won't solve anything. It'll cause even more corporate issues in the long run and will screw Nintendo up even more.

No, if he was the CEO of an American company he'd be fired. Sometimes they are allowed to "resign" to save face, but it's still termination.

 

[meppi]

Exactly. I think people are trying too hard to slam a console that can be turned around without too much effort. A Nintendo Direct could come out in any 2 day range to drop bombs. E3 could drop bombs. Fall event could drop bombs. So is Wii U done after 3 months of negative publicity and virtual console wars egotism? Hardly

This right here. All it needs is a steady stream of good games and they are back in business.
I clearly remember the SNES launch, N64 one (oh God) and GameCube one for instance and all of them had a post launch draught to a certain degree.
Looks like some people want them to fail so bad that they start screaming stupidity at every opportunity.
If by Christmas we still are in this situation it's time to start panicking.

Not that right now is looking rosy at all with the numbers coming out.
But then again, no one is gonna buy a system that doesn't have the right games.

 

[Cheerilee]

Nope. What does removing him do? Its a negative for the whole organisation with zero gains.
The hardware is out; and the software delayed. Iwata is basically needed to keep the ship steady.

He's really not. A company the size of Nintendo basically runs itself. Iwata's job is leadership. If they boot Iwata, the new guy will presumably set up a plan to remove Nintendo from Iwata's failures with as little damage as possible, and chart a new course for the company. The new guy won't really be blamed for the damage Nintendo sustains while changing course, like how Iwata wasn't blamed for the GameCube (which crashed hardest after he took over, because he was pulling out).

Iwata could probably do that by himself, but if Nintendo blames him for the failures, he might not be given the right to make the next call. He has no inherent right to the leadership chair. They just let him have it because he was winning, and because they believed he knew the secrets of winning. If they now believe it was all just luck, then he's in trouble.

The WiiU and 3DS could live or die under Iwata just as easily as they could under the new guy. It's not a given that "Nintendo keeping Iwata" is the only way for Nintendo to keep their horse hitched to the WiiU, because the new guy might decide that letting the WiiU play out is the best option (even if the WiiU is facing years of failure), and on the other hand, if killing the WiiU now is the right call, and Iwata won't do it, then Nintendo has even more reason to fire him.

 

[squid]

Why are you ignoring my point and going off on some weird GAF attack?

I have no problem with the 3DS as a system. I don't even mind the 3D, I like to turn it on. I'm saying that 3DS is able to survive without a strong gimmick because the competition around it isn't as strong and they still have the type of software that can sell a system of t hat price range. I don't think Wii U is in the same situation.

Because you're using the 3DS as a point against Iwata, which is ridiculous. It should be a point FOR him, if anything, because he managed to make it a success despite market conditions (smartphones, tablets, etc).

 

[NeonZ]

Except this won't happen, because it's not the direction that shareholders and outside commentators have been pushing for. Not to mention it isn't a viable strategy for Nintendo, economically.

The trend with Japanese companies is definitely social/mobile/tablet offerings, which is why all the major publishers there have it as a core part of their business, and the one reliable growth area. You don't fire a guy to replace him with someone who is going to take the company in what is seen as a long-term dead end.

Only for Japanese focused business though. Iwata himself gets pressure in the recent investor meetings about the Western market and sales. That said, yeah, maybe the console branch could be cut off, but it'd likely still leave them in a better situation than they have currently, due to being able to focus all resources in a single system.

 

[jcm]

Because you're using the 3DS as a point against Iwata, which is ridiculous. It should be a point FOR him, if anything, because he managed to make it a success despite market conditions (smartphones, tablets, etc).

Yes it's a big success, consistently missing sales forecasts despite a massive price cut. Congrats to Iwata for that one.

 

[Cheebo]

Because you're using the 3DS as a point against Iwata, which is ridiculous. It should be a point FOR him, if anything, because he managed to make it a success despite market conditions (smartphones, tablets, etc).

It misses every single sales target nintendo has set. Iwata point blank said its sales are still underwhelming overall at the last shareholders meeting and they need to drastically improve in the west still.

 

[mclem]

That's the problem they simply are not NEARLY aggressive enough anymore. Nintendo in the 90s had aggressive advertising, sometimes even edgy at times. Where's the jabs at the competition to hype up your base?

I... kinda hate that sort of thing. Strongly, passionately despise it. I'm okay with affectionate jibes, but that sort of nonsense posturing from the business itself puts me off a system massively.

 

[Steve Youngblood]

Exactly. I think people are trying too hard to slam a console that can be turned around without too much effort. A Nintendo Direct could come out in any 2 day range to drop bombs. E3 could drop bombs. Fall event could drop bombs. So is Wii U done after 3 months of negative publicity and virtual console wars egotism? Hardly

I really think its getting incredibly naive to pretend as though we're a press event or two away from this thing setting the charts on fire. When they release great software (along with hopefully a price drop), things may improve. But it's silly to think we're an E3 away from Reggie or Iwata stepping on the stage, announcing "Mario! Zelda! Metroid! Mario Kart!", showing footage, dropping the mic, and walking off triumphantly as they await stellar sales news.

This situation is bad. A Nintendo Direct isn't going to salvage this anymore until the software is on shelves.

 

[partyphone]

Those January numbers are a whole lot more telling than the first two months of each system. Any new hardware in this industry is going to more or less sell out the first shipment, especially during the holiday season.

Sure. But the 360 and PS3 didn't launch during a global recession. The numbers show that demand for a new console around the holiday season is inelastic. The 360 numbers would be about the same as the PS3 numbers had there not been supply constraints.

So what the numbers tell me is that people are being more careful with their entertainment dollars and aren't buying a system that has so few games. The PS4 and 720 are probably going to be in the same boat come January 2014.

 

[JordanLMiller]

Any idea of who would even take over? Someone outside the company I guess?

 

[Mpl90]

Good, Cheebo attacking. I can't handle all this iOS supremacy agenda.

 

[DXB-KNIGHT]

Nintendo is currently making some massive internal changes to adapt to the coming challenges. Lets see how these changes will make an impact in the short run (SW) and in the long run (HW).

 

[squid]

Yes it's a big success, consistently missing sales forecasts despite a massive price cut. Congrats to Iwata for that one.

Are you someone who views the PSP as a failure? Or the GBA? Just curious.

The 3DS is doing much better than before. It is actually a healthy platform now. It's built up a nice WW sales figure (about 30 million as of the end of last year).

 

[GameCenterXDS]

People keep saying 'they ignored the gimmick' when the game that kickstarted the 3DS was called 3D Land.

People need to stop revising history.



Only if they think someone else can do better with the same company.

Bigger than 3D Land was Monster Hunter. It's one of the biggest moves Nintendo has ever made in their entire history. Yes 3D Land and Mario Kart were huge and a big push but Monster Hunter was just something else. That shifted everything and I believe got a lot of other third-party companies eyes straight back on the 3DS.

 

[jonno394]

As long as the person taking over realises that Nintendo IP needs to stay on Nintendo hardware, then I don't mind. If some one comes in and starts releasing titles on android or iphone, then Nintendo are prpbably doomed.

 

[Tenki]

So 3DS, the best selling console worldwide right now, it's a failure and a point against Iwata. Yeah.

 

[JoeM86]

Just because the 3DS isn't meeting Nintendo's expectations (Nintendo have seemingly gone for overly ridiculous predictions these days rather than their conservative ones of yesteryear) does not mean it's not doing well. It is. They're never going to say "yeah, we're happy with how it's doing", they're always going to want more from it

 

[grimshawish]

Bigger than 3D Land was Monster Hunter. It's one of the biggest moves Nintendo has ever made in their entire history. Yes 3D Land and Mario Kart were huge and a big push but Monster Hunter was just something else. That shifted everything and I believe got a lot of other third-party companies eyes straight back on the 3DS.

In Japan sure.
Worldwide 3D Land led to a resurgence that Christmas.
It should end up the best selling 3D Mario.

So 3DS, the best selling console worldwide right now, it's a failure and a point against Iwata. Yeah.

Its a point against Nintendo's forecasts and he needs to ensure better strategy and clarity there.

 

[Aquamarine]

Nintendo is currently making some massive internal changes to adapt to the coming challenges. Lets see how these changes will make an impact in the short run (SW) and in the long run (HW).

Iwata has until the end of FY 2014 (March 31st, 2014). The clock is ticking, Iwata. Make your last year count.

Are you someone who views the PSP as a failure? Or the GBA? Just curious.

The 3DS is doing much better than before. It is actually a healthy platform now. It's built up a nice WW sales figure (about 30 million as of the end of last year).

30 million is a lot more than the GameCube ever managed (and most likely the Wii U) :-(

 

[Steve Youngblood]

So 3DS, the best selling console worldwide right now, it's a failure and a point against Iwata. Yeah.

This would be sharper commentary if they didn't have to take massive steps to right that course, and if it was hitting forecasts. Mind you, it would be silly to look at the current situation and call it a failure, but looking at its performance since inception, it's equally silly to declare this a real feather in his cap, particularly if the Wii U requires similar drastic steps.

 

[Roman]

I really think its getting incredibly naive to pretend as though we're a press event or two away from this thing setting the charts on fire. When they release great software (along with hopefully a price drop), things may improve. But it's silly to think we're an E3 away from Reggie or Iwata stepping on the stage, announcing "Mario! Zelda! Metroid! Mario Kart!", showing footage, dropping the mic, and walking off triumphantly as they await stellar sales news.

This situation is bad. A Nintendo Direct isn't going to salvage this anymore until the software is on shelves.

In addition this has more to do with the second annual loss in a row than '3 months of negative publicity'.

 

[javac]

I think the $80 price drop kick started it more than 3D land did.

The pink line. 3DS sales went up after the price drop, but then went back down, stabilising with Mario Kart and 3D Land.

Media Create Sales: Week 32, 2011 (Aug 08 - Aug 14) Price Drop = 196.077
Media Create Sales: Week 35, 2011 (Aug 29 - Sep 04) 3 weeks later = 54.744
Media Create Sales: Week 48, 2011 (Nov 28 - Dec 04) Mario Kart 7 released = 205.962

 

[JavyOO7]

Hmm. Iwata did great with Wii/DS and is now doing not so hot with 3DS/Wii. 3DS is picking up the slack in Japan but still has faced a mum reception over at the West. My take is that since he saw two grand successes under his watch he should also be able to see two grand failures under his watch to see if he can salvage the ships. I personally think he can. Can't wait to see what he does going forward.

 

[JoeM86]

As long as the person taking over realises that Nintendo IP needs to stay on Nintendo hardware, then I don't mind. If some one comes in and starts releasing titles on android or iphone, then Nintendo are prpbably doomed.

They also need to agree with Nintendo's current policies with DLC. If it turns EA style, then that would be detrimental