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[Master Nairb]

I guess I don't understand why everyone wants Iwata to step down right now. Is it because of the Wii U? If you look over Iwata's track record for the last ten years he is practically been the perfect fit for Nintendo. They released both the DS and Wii, both of which were practically laughed off the stage when first announced and now have gone on to become very successful and profitable. And now the 3DS, which when was considered a failure but has now turned yet again into another Nintendo phenomenon. It just took a little time. The Wii U has not been out even a year. I believe it will become popular soon.

I will understand if 2 years from now Nintendo is still having financial looses but for now, they have simply made a few mistakes, are readjusting, and will more then likely get back on coarse - like they always have.

 

[Snowden's Secret]

I don't think that this is an outlandish suggestion, and if they were to do it, I'd probably shrug my shoulders and not think too much about the implications. However, I don't necessarily think it's a no-brainer either, despite what some investors may clamor for. And by that, I simply mean that I think -- given their interest in the mobile space -- they don't want to direct their potential audience towards the competition for gaming. You're right in that I don't think an iOS release of the original Legend of Zelda devalues the Zelda brand. However, I think they'd prefer you playing that copy on a 3DS. Want Zelda, Mario, and other Nintendo classics? Well, I think they want you to buy a Nintendo platform to play them on.

Again, though, don't read this as "there's no way they'd do that; you're stupid." However, I don't think it's necessarily a clear cut situation where they absolutely should put old classics on iOS.

When a consumer plays a buttonless, touch controlled SMB or LoZ and it's awful (it is, try it!), I would consider that a devaluation of the brand, as a (potentially) new consumer had a poor experience with the brand.

 

[Steve Youngblood]

When a consumer plays a buttonless, touch controlled SMB or LoZ and it's awful (it is, try it!), I would consider that a devaluation of the brand, as a (potentially) new consumer had a poor experience with the brand.

Mind you, I'm not someone who personally cares one way or another whether this software shows up in the App Store. However, I grant you that it might be awkward. But knowing Nintendo, I doubt that they'd release it at all unless they had cracked this problem to get it to some sort of "acceptable" level.

 

[shinra-bansho]

Vita isonly selling better than Wii U in Japan and that;s by less than 10k. It's dead everywhere else.

Exactly it would just be another sign of horrendous management. You always have options because anything could happen to Iwata and if he's the only candidate then you send your company spiraling for being ill prepared. If Nintendo posts a decent profit this year, he should be fine though. But if they miss that 9 million by a lot and lose money he will be gone.

The 9M units and the operating profit forecast seem diametrically opposed; they're going to have to eat cost if they want to move Wii Us.

Also, the Vita sold more in Europe based on Nintendo's marketshare charts, for Jan-Mar. The Wii U may have sold a sliver more in April than the PSV.

 

[jcm]

I guess I don't understand why everyone wants Iwata to step down right now. Is it because of the Wii U? If you look over Iwata's track record for the last ten years he is practically been the perfect fit for Nintendo. They released both the DS and Wii, both of which were practically laughed off the stage when first announced and now have gone on to become very successful and profitable. And now the 3DS, which when was considered a failure but has now turned yet again into another Nintendo phenomenon. It just took a little time. The Wii U has not been out even a year. I believe it will become popular soon.

I will understand if 2 years from now Nintendo is still having financial looses but for now, they have simply made a few mistakes, are readjusting, and will more then likely get back on coarse - like they always have.

The 3DS is another Nintendo phenomenon now? I think people want Iwata to step down because he has badly bungled Nintendo's only two product lines. But that's because I don't see the 3DS's performance as some kind of phenomenon. As far as I can see, everywhere but Japan it's anemic at best.

 

[Jotamide]

Nintendo is in serious need of new blood.

 

[D_prOdigy]

Nintendo is in serious need of new blood.

Sakurai's drinking it all to stay young.

 

[Ushojax]

The 3DS is another Nintendo phenomenon now?

No but it's selling decently and recovered from an awkward start. Once Pokemon hits it will probably go up another gear.

 

[BlackJace]

Sakurai's drinking it all to stay young.

I loled.

 

[Chezzymann]

Isn't the 3DS only "massively" successful in Japan, and not performing up to Nintendo's expectations overseas?

I don't recall seeing killer hardware unit sales in either NPD or the European tracker.

There are 3 3DS games (Animal Crossing New Leaf, Donkey Kong Country Returns 3D, and Luigi's Mansion 2) in the top 5 globally right now. So I think its doing decent. Not that great internationally when you compare it to the DS, but still decent enough.

 

[Coolwhip]

Why do people think a new CEO is going to change that?

Because some people are idiots.

I kid I kid.

More than some.

 

[JoeM86]

There are 3 3DS games (Animal Crossing New Leaf, Donkey Kong Country Returns 3D, and Luigi's Mansion 2) in the top 5 globally right now. So I think its doing decent. Not that great internationally when you compare it to the DS, but still decent enough.

Which is the problem

Everyone, including Nintendo unfortunately, is just trying to tie 3DS and Wii U sales to be as good as DS and Wii. Both of which were unprecedented hits due to the tapping of the new market. The 3DS is doing very well now, 33m units within its first two years isn't bad at all. The Wii U will also likely turn around this winter, too, with its continual amount of big games. People seriously underestimate the appeal of Mario gamed. Look what Mario 3D Land and Mario Kart did for the 3DS. In October 2011, the 3DS was at 6.68m units sold. In March 2012, it was at 17.2m units sold. November & December 2011 had Super Mario 3D Land and Mario Kart 7. What does that tell you?

 

[Kai Dracon]

The problem I see with the "put games on mobile to raise awareness" is that even aside from the limitations of smartphones creating a poor impression of the games: what is this assumption that the average smartphone user will beat Nintendo's door down to buy a piece of custom hardware to play the "real game"?

Haven't we been hearing how Nintendo's so-called casual Wii audience has fled to smartphones precisely because they don't care about dedicated game hardware and higher quality games?

So... why is farming out IP to smartphones supposed to make those people come back to Nintendo? When $1 of SMB1 to be played for a few hours with bad controls is all most of those users care about? (Going by how that audience has been characterized.)

Edit: and yeah, I understand the suggestion that it "can't hurt anyway, it's extra money". Which is debatable, as the danger of devaluing brands seems pretty real. Seems the danger of that happening makes for a dicey bet when placed against the odds lots of mobile users will come buy more Nintendo product.

 

[shinra-bansho]

What does that tell you?

That a 40% price cut in Japan and a 30% price cut in the US improved sales. Are they planning on making the Wii U $199? It already has Mario.

 

[Air]

There doesn't need to be a guarantee they buy a console. If they're happy playing NES and SNES games forever, they weren't going to buy your new console anyway. It's found money either way. Shareholders are happy, and customers are happy whether they buy your hardware or not.

Sony is heading in this exact direction with Gaikai. You will be able to play catalog titles on any device in the future.

It's a good point, but I still think it goes against the companies branding. Nintendo characters for Nintendo systems. I also think the games on those devices will truncate sells for their software on their own consoles too.

 

[JoeM86]

That a 40% price cut in Japan and a 30% price cut in the US improved sales. Are they planning on making the Wii U $199? It already has Mario.

The price cut was months beforehand (In August 2011) and didn't have such an effect. It's the software that sells systems.

Prior to the price cut (the end of June 2011), the 3DS had only sold 4 million units. The price cut boosted a little, but it then dropped off again, until the software actually hit

 

[Kilrogg]

So you can say you are an expert in Japanese culture?

Certainly not, but I've been learning the language and culture for 12 years, I used to live there (for a year, which admittedly is neither impressively long nor short enough to be scoffed at) and I know enough Japanese people to have an informed opinion on the matter. Japanese does have many roundabout phrases to say things. Many or them are essentially codes of sort: once you know them, it's much easier to decipher the meaning behind what's being said.

Satoru Iwata, btw, is typical in that regard: ever notice how politely he expresses himself, even when hearing a stupid investor's question for the nth time? So when he specifically asks people to understand the meaning of 'commitment', you can bet your ass it means he's putting his job on the line.

 

[Pie and Beans]

Promises shareholders 9 million WiiU's sold and 100 billion yen profit after apologising for what feels like 2 straight years.

Won't achieve.

No repercussions? Would have to be the stupidest and most lackadaisical stockholders and shareholders going.

 

[shinra-bansho]

The price cut was months beforehand (In August 2011) and didn't have such an effect. It's the software that sells systems

.

So I thought I'd explore this idea that the 3DS recovered primarily because of Mario Kart and 3D Land, rather than the (massive) price cut.

Since people keep referring to such effect as reason that come Dec this year (SM3DW) and Spring 2014 (Mario Kart 8) there will be a turn around in the Wii U's fortunes.

The price cut was announced July 28th and was effective from the 12th of August.

These are weekly sales rates for the 3 months prior and 3 months after the price cut. Post-cut in bold

May	24250
Jun	28600
Jul	23620
[B]Aug	58750
Sep	52000
Oct	63480[/B]

MK7 was released at retail Dec 4th and 3D Land, November 13th; outside of the months in question. They also coincided with the Holiday season, which further obfuscates how much of an effect they actually had in themselves.

N.B. I am not saying that software isn't important; but people seem to keep insisting that "a price cut would do nothing" and/or that the upcoming Mario games in absence of a large price cut will be sufficient to move the needle.

 

[JoeM86]

.

I edited my post with some data. I'm not saying a price cut wouldn't help, but it didn't make the desired effect that people believe it did

The price cut was months beforehand (In August 2011) and didn't have such an effect. It's the software that sells systems.

Prior to the price cut (the end of June 2011), the 3DS had only sold 4 million units. The price cut boosted a little, but it then dropped off again, until the software actually hit

It's foolish to assume it was just a price cut that did it when evidence indicates otherwise

 

[Gannd]

4. Ahh, the "devalue" argument. The opposite is true. Bringing VC to mobile would add value. It's making older Nintendo IP available to a larger audience, while limiting the new experiences to Nintendo Hardware. This would sell more hardware, and potential customers will love that the purchases they made for the mobile platforms will carry over to their new Nintendo hardware. No hassles or worries. Everyone wins here. A customer who would never buy Nintendo Hardware is now making them money, and a customer intrigued with their games might look at a console. This also gets the shareholders off their backs.
.

Are you saying that people aren't familiar with Mario? How would being able to play Super Mario Brothers 2 on an iPhone or Android phone make someone more familiar? It does devalue the brand. It also means that someone doesn't have to buy a piece of Nintendo hardware to enjoy those games. The margins that Nintendo would earn on mobile platform

The best way to go after those gamers would be to have the Wii U at a lower price (and I bet they cut the price by at least $50 by September 30th and I hope for $100) and advertise the VC as away to enjoy all the games someone grew up with.

Shareholders are stupid if they think mobile gaming is going to be a big source of revenue. They don't have to give up 30% of the revenue to Apple or Google when they sell the game themselves.

 

[Gannd]

Mind you, I'm not someone who personally cares one way or another whether this software shows up in the App Store. However, I grant you that it might be awkward. But knowing Nintendo, I doubt that they'd release it at all unless they had cracked this problem to get it to some sort of "acceptable" level.

I agree with you but I don't think Nintendo will do that until they actually leave the traditional handheld space. They won't crack that code (if they haven't already) until they are going to abandon the traditional space and partner with a mobile platform to release games.

 

[Sammy Samusu]

Posted?

http://www.nintendo.co.jp/ir/stock/meeting/130627qa/04.html

Q&A in Japanese.

 

[Steve Youngblood]

I agree with you but I don't think Nintendo will do that until they actually leave the traditional handheld space. They won't crack that code (if they haven't already) until they are going to abandon the traditional space and partner with a mobile platform to release games.

Yeah, I mostly agree there and stated something to that effect in my previous post.

 

[shinra-bansho]

I edited my post with some data. I'm not saying a price cut wouldn't help, but it didn't make the desired effect that people believe it did

You're looking at shipment data, reported quarterly, which early in a system's life doesn't give a good read on it's actual sell-through. I'm not sure how exactly you look at the 2.36M units shipped for the July to September quarter, within the middle of which the price cut occurred, and extrapolate that "The price cut boosted a little, but it then dropped off again, until the software actually hit."

I just posted sell-through data showing a sustained rise in hardware sales rate in the US post-price cut. A doubling of sales rate for the three non-holiday months post-price drop.

This is the equivalent for Japan, prior to the release of either Mario game.

An average sales rate improvement of ~80%.

The price cuts improved the sales baseline. There is "evidence" of such.

Specific software in all likelihood improved the holiday sales further as well; there isn't any "evidence" however to suggest that in absence of these 40% and 30% price cuts the system would have moved as it did.

 

[Effect]

Posted?

http://www.nintendo.co.jp/ir/stock/meeting/130627qa/04.html

Q&A in Japanese.

I hope that's translated soon. While I don't want Iwata to go nor think he should go (the Wii and DS were huge successes. The 3DS is a success after a bad start. The Wii U can be turned around but how and when is the question. Any going third party talk is stupid.) I do want him at least raked over the coals by the investors as to the choices he's made with the Wii U (advertising, lack of games, third party support, clear message, etc). Interviews with gaming media will not result in any serious answers regarding these issues. However that likely wouldn't be the case when it comes to talking with investors.

 

[Snowden's Secret]

I agree with you but I don't think Nintendo will do that until they actually leave the traditional handheld space. They won't crack that code (if they haven't already) until they are going to abandon the traditional space and partner with a mobile platform to release games.

I don't think there's any code: Nintendo (any any talented developer) could make great mobile, touch screen based games. You just couldn't make a good traditional Super Mario or Legend of Zelda (see: all the terrible platformer and adventure games on mobile). Remember, Nintendo is legendary when credited with building controllers to suit game designs (Super Mario 64 and the analog stick, for example), and not so much when trying to build game designs to fit specific controllers (Skyward Sword, even though I loved it, is often railed on for its controls).

Rhythm Heaven would be a great fit for mobile, maybe (?) even more profitable than on Nintendo's own hardware. But that's about the only one of their franchises I could think would translate 1:1. Anything else would basically have to be new IP, or some bastardized Super Mario endless runner.

 

[nephilimdj]

Kinda wish nintendo was run by a board of directors instead
a few NOA, a few NOE and Japanese
NOE could drill it into there head to translate all games for west.

Alot of missed opportunities under Iwata (Gamecube rom downloads on wii ect.)

 

[Steve Youngblood]

Tidied up this page a bit. Let's try to keep the discussion about the actual topic, and not take shots at nebulous Nintendo and anti-Nintendo groups.

 

[airmangataosenai]

Yeah but he's successfully turned it around. That's called being a good CEO.

Only in Japan. As has been discussed many, many times now the 3DS never saw dramatically improved sales anywhere else in the world.

Even there it bottomed out around 20k and is now selling around 40k.

 

[onipex]

Can someone refresh my memory? I don't recall the Japanese media stating that Iwata implied that he'd resign. I recall the western media stating that despite the fact the English translation doesn't even hint at that at all. Am I missing something?

Gaf said it and the Internet ran with it.

 

[FUNKNOWN iXi]

"Oh, you seem to misunderstand me. You see... I have no intention of resigning."

*claps twice*

 

[prwxv3]

They need new leadership beyond the CEO. Right now they do not have a clear vision with the WiiU.

It may bomb too but right now Sony has a clear vision with the PS4 and they have great leadership at the helm (Cerny, Yoshida, Boyes)

 

[qizah]

I always thought his original statement was clear. I never read any indication that he said he would resign.

I do however think that this Holiday season is going to be telling for their direction moving forward. I also do think Iwata will stay as CEO for some time. He's done Nintendo a lot of good over the years, I certainly can't think of anyone better at the moment to manage Nintendo than him.

 

[moltonasty]

They need new leadership beyond the CEO. Right now they do not have a clear vision with the WiiU.

It may bomb too but right now Sony has a clear vision with the PS4 and they have great leadership at the helm (Cerny, Yoshida, Boyes)

I think this is the major issue with the Wii U. It's like, they don't know who their target audience is right now, while Sony is very clear-we are targeting the core gamers. It would seem Ninty is only targeting diehard Ninty fans at this point..clearly not a good business plan

 

[jcm]

Only in Japan. As has been discussed many, many times now the 3DS never saw dramatically improved sales anywhere else in the world.

Even there it bottomed out around 20k and is now selling around 40k.

Right. Here's the 3DS's third FY, and the third FY of the previous gen.

         HW       SW
3DS   13.95    49.61
PSP   14.10    50.30
NDS   23.56   123.55

So I guess someone thinks the PSP in 2008/2009 was a big success, then he can also claim the 2012/2013 3DS is one. Personally, I think it looks pretty weak, particularly considering its pedigree.

Gaf said it and the Internet ran with it.

You mean ITMedia said it, and GAF translated it. Unless you are claiming Cheesemeister translated incorrectly?

 

[gamergirly]

No shit. Even I was scratching my head when people jumped to that conclusion. People just read into his commitment comment too much.

.

 

[onipex]

You mean ITMedia said it, and GAF translated it. Unless you are claiming Cheesemeister translated incorrectly?

No, just joking.

 

[Josh7289]

Good. He seems like a good guy.

 

[Father_Brain]

Good. He seems like a good guy.

That's a great qualification for running a large international business in a rapidly changing market.

 

[Effect]

I think this is the major issue with the Wii U. It's like, they don't know who their target audience is right now, while Sony is very clear-we are targeting the core gamers. It would seem Ninty is only targeting diehard Ninty fans at this point..clearly not a good business plan

I don't even think they are targeting Nintendo die hards at this point based on their decisions with the Wii U. If they think they are then they don't know who that die hard group is. Some may have bought the Wii U already (to buy it perhaps because it was new hardware and not because anything Nintendo has done so far) but there are certainly a ton more.

 

[Darryl]

Another angle one can read about this is that they could be no longer anticipating meeting their projections. But yea, I don't understand based on the translation how people were thinking he'd quit. He'd probably take another pay cut or something. I can't imagine it would be a good thing for the company if you released a product with a 5+ year life span and then quit when things got tough.

 

[prwxv3]

I don't even think they are targeting Nintendo die hards at this point based on their decisions with the Wii U. If they think they are then they don't know who that die hard group is. Some may have bought the Wii U already (to buy it perhaps because it was new hardware and not because anything Nintendo has done so far) but there are certainly a ton more.

It looks like they tried to get the wii audience again and once they realized that was not going too happen they scrambled to try to get their diehard fans.

 

[jts]

Another angle one can read about this is that they could be no longer anticipating meeting their projections. But yea, I don't understand based on the translation how people were thinking he'd quit. He'd probably take another pay cut or something. I can't imagine it would be a good thing for the company if you released a product with a 5+ year life span and then quit when things got tough.

Yep.

The amazing part is that the ones asking for him to resign, would be saying that he's a coward if did that (same crowd at least, doesn't matter if they split their chores nicely).

And then they would ask for Nintendo games, the absolute top of videogaming excellence, mind you, on shitty touchscreen mobile hardware at $1 a pop. Ugh. So gross.

 

[Crawl]

Don Mattrick confirmed as the next nintendo ceo.

 

[Pseudo_Sam]

1. Announce an industry standard account system in line with all of their competitors.
2. Any VC title purchased on any system will work on any other system. No additional fees or nonsense.
3. Announce an all black and all white 3DS XL for North America immediately.
4. Announce VC for iOS and Android. Any VC title purchased with your Nintendo account will be available on mobile.
5. Wii U price cut.
6. New IP! Focus on a wider range of properties and genres.

This is just for starters, of course.

I feel like the only one of these that would have any meaningful impact in sales would be number 5. Also number 7, which is "release some damn games jesus christ."

The others are fairly niche requests, honestly. It's easy to get wrapped up in the GAF echochamber, but the market Nintendo wants probably doesn't give a rat's ass about unified accounts or new IPs. At least, not to the extent we do.

 

[Shiggy]

A good decision for Iwata, a bad decision for Nintendo. I wish they'd bring someone to the top who puts some effort into offering standard features (online gaming) or creating new franchises outside of new Mario spin-offs.

 

[komicturtle]

Its pathetic when a bunch of PABs desperately want someone to resign from a company even though this man has brought great success to Nintendo. It's absolutely adorable how people believe the Wii U will tank this holiday season..

So cute <3

 

[Y2Kev]

Heh, there's a thread on /v/ about you guys and this topic.

I'd say most of you would find it rather... unsavoury.

Who gives a shit?

I think the wiiu (and to the lesser extent the original 3ds) are fundamentally unappealing products so iwata deserves shit for that but I'm sort if curious to see just how along for the ride he really is. Would a CEO change change nintendo's fate?

 

[jmls1121]

Good. Iwata is the perfect fit for Nintendo and the best CEO in the game industry.