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Iwata confused why Nintendo stock is down, admits Wii U reveal could have been better

Friday, 10th June 2011 15:57 GMT By Stephany Nunneley

Nintendo seems a bit confused as to why shares in the company dropped following the announcement of Wii U at E3 this week. According to president Satoru Iwata, the stock market’s reaction is in stark contrast to the reaction felt on the showroom floor.

Reuters reports that Iwata compared the reaction to Wii U with the reception of Wii when it was first announced in 2006, saying that like its predecessor, people cannot understand the device until they themselves get some hands on time with it.

“Honestly speaking, the reaction to (Tuesday’s) presentation and what I heard from people I met and the mood of the convention did not chime at all with what happened in the stock market,” Iwata said in an interview. “It’s very strange.

“In the end, it is easy to get the mistaken impression that this is just a game console with a tablet. People who came to the presentation and tried it out have understood very well that it opens up a lot of new possibilities. But people who have not tried it will find it hard to believe that this controller will change things.”

Iwata, however, admitted to the London Evening Standard that if Nintendo had shown the actual console during its presentation, even just a hint of it, the stock market’s reaction may have been a bit different.

“Because we put so much emphasis on the controller, there appeared to be some misunderstandings,” Iwata told the Evening Standard. “We should have made more effort to explain how it works1

“We haven’t made any kind of blunder, but I should have shown a single picture of the new console, then started talking about the controller. The console is not drastically different, and Wii U is about the controller. The console itself will be almost invisible.

“There have been two groups of people writing about our announcement – those like the Evening Standard, who have been able to experience the Wii U, and those who have not, and are simply writing about it from wire stories and pictures. They cannot see how this can be a game changer. What Wii U will offer is very different, but I believe we have the strong potential to change the entire format of videogames and of entertainment.”

Iwata went on to tell the Evening Standard that at the moment there seems to be a “barrier between the Wii…and the other companies’ consoles,” which are seen as for core gamers while the Wii seen for casuals.

“We are questioning whether that barrier needs to be there,” added Iwata.

Nintendo share prices fell 5.7 percent following its E3 press conference on Tuesday, and a further 4.7 percent the following day. Today, ordinary shares in Nintendo are up 0.5 percent while depositary shares are down $0.10 to 0.39 percent on NASDAQ.

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23 Comments

  1. xino

    what if people want to get a Wii U instead of getting a wii?

    i was planning on getting wii when i have enough money but I will not anymore. Wii u is backwards so I might as well get a Wii U

    #1 4 years ago
  2. Gama_888

    Because they know Lightning will not strike twice and that this will not be as successful as the Wii.

    They all hopped aboard the bandwagon for the Wii and now getting off it (before it crashes and burns) for the WiiU

    #2 4 years ago
  3. G1GAHURTZ

    Because we put so much emphasis on the controller, there appeared to be some misunderstandings,” Iwata told the Evening Standard. “We should have made more effort to explain how it works

    Duuuh!

    #3 4 years ago
  4. _LarZen_

    Sorry for the language but the presentation was SHIT. When introducing a new console at E3 of all places you show the damn console and not only the controller for it.

    And you explain what it is capable of…and show the world what it can do.

    No wonder the stock took a dive, the lack of information and the confusion that it was just a controller scared the hell out of many investors.

    #4 4 years ago
  5. Peetry

    I don’t understand the confusion personally, it seemed very obvious to me. They showed us the new controll scheme plus the new standard of games the console would support. Maybe they should consider that their overall idea was just a bit shit.

    #5 4 years ago
  6. Gekidami

    What they should have done is announce some games with it then show them running on the console. Honestly Nintendo, do you really think shareholders are going invest in the nothingness you showed at E3?

    #6 4 years ago
  7. Strandli

    Showing a console equally powerful to 6 year old consoles should make the stocks rise :p It’s a gimmick, and the WiiU will most likely be abandoned by third party as soon as the next generation starts with PS4/Xbox3. Nintendo just caught up with current gen, congrats Nintendo!

    #7 4 years ago
  8. Stardog

    It was utter stupidity from Nintendo. 90% of people thought the controller was a console.

    “But people who have not tried it will find it hard to believe that this controller will change things”

    The problem is that almost nobody has tried it, and won’t ever try it before buying. It’s the same problem with the 3DS – “you need to try it to see” – and that’s why it hasn’t sold as well as Nintendo hoped.

    http://www.wired.com/gamelife/2011/04/nintendo-3ds-sales/

    “I believe we have the strong potential to change the entire format of videogames and of entertainment”

    Fifa putting the radar, or Zelda putting the minimap on the handheld is a game-changer? No chance! No 3rd-party is going to put any effort into making anything interesting using the screen. And seeing that the hardware may not even reach 360 quality, coupled with the $250+ price, nobody will buy this.

    Nintendo live in cloud cuckoo land, and clearly don’t play the same type of games as the rest of us. They have failed.

    And this is coming from someone who bought a Wii on day one.

    #8 4 years ago
  9. rrw

    simple answer: Hype Backlash

    #9 4 years ago
  10. Erthazus

    “90% of people thought the controller was a console.”

    Are stupid ass fuck. Because controller or not, company wanted to sell people a controller.
    console for Nintendo is not important and thats where was a success with the Wii. It’s all about the controller.

    Anyway, problem or not… Kitchen Sink that was presented at E3 was just horrible.

    Kitchen sink (controller):

    1) single-touch screen
    2) yellow screen issues
    3) Huge as fuck

    Console:

    1) No optical audio output
    2) no HDD
    3) No wired ethernet

    and thats just the start. Console and it’s Kitchen Sink is CRAP.

    #10 4 years ago
  11. OlderGamer

    “And seeing that the hardware may not even reach 360 quality, coupled with the $250+ price, nobody will buy this.”

    I will buy this day one. Will be preordering very soon. To me the next gen is not going to be about power. I think there is a glass ceiling when it comes to raw power anyways. And I think we awefuly close to that already.

    Games are fully of gimmicks. Be them “Perks” in a game of CoD, on the lighter side or more obvious one like Kinect/Move/Wii(U). Gimmicks don’t bother me.

    And if I can play my fav sports game, and use the touch screen to draw up a play, and then call that play on the next snap/break/throw in, that is a gimmick that is a solid game changer to me.

    Its amazing how so many people fear change.

    The only thing I worry about with WiiU is can Nintendo build a quality Online Experience? History has us casting our doubts. But honestly if Sony can do it, so can Nintendo. Thats not a jab at Sony, just that MS is a software company with a long history of rolling out software driving procsesses. They came into the games world knowing that Online was a big deal, and they knew how to get it done. Sony had to learn.

    I believe Nintendo can learn too. The question I have is do they want to? Do they understand that a console these days needs to do much more then SP games. Even more then couch co-op.

    If they provide HD visuals(yes even PS360 level ones), bring 3rd parties on board, offer the same solid 1st party games they are known for, AND have a solid online service … I will be a very happy gamer.

    Nintendo is a game company, maybe one of the last true game companies out there. I am not worried about the WiiU.

    #11 4 years ago
  12. Erthazus

    “I will buy this day one. Will be preordering very soon”

    OG, for what purpose? You already know what games this thing is going to support or how about a Kitchen Sink that is single-touch screen only with yellow issues?

    “I believe Nintendo can learn too. ”

    you buy consoles by a potential? It’s absolutely a STUPID move for a smart and old man like you.

    there is absolutely zero point on why it is next generation and what it is going to offer. (Even if we are going to put graphics away)

    Except that console have no wired internet slot and optical audio output.

    buying something because of potential is ridiculous.

    #12 4 years ago
  13. Stardog

    @OlderGame “And if I can play my fav sports game, and use the touch screen to draw up a play, and then call that play on the next snap/break/throw in, that is a gimmick that is a solid game changer to me.”

    But who’s making the games? The 3rd-parties are, and their lead platform is the 360, then ported to the PS3/WiiU. Are they going to spend a ton of time to build an entirely different system like that? They might for the first installment on the console, but if it doesn’t sell well, don’t expect any effort for future installments. And if you’re getting downgraded graphics each time, will you be that happy missing out on the 360/PS3 version?

    At worst you’ll get a b-rate version made specifically for the WiiU by a different dev from the main series.

    #13 4 years ago
  14. mojo

    2:
    actualy a lightning does indeed strike twice.

    #14 4 years ago
  15. Fin

    @12

    “buying something because of potential is ridiculous.”

    Everyone knows if the PS4/Xbox 3 had a 16GB graphics card with 1TB of ram (or whatever numbers are important there) and an amazing tech demo, you’d be first in the preorder queue.

    #15 4 years ago
  16. OlderGamer

    I layed out my case pretty good.

    I think it look nice. And I want one.

    Besides its only 250usd. Vita is 250usd. Its not cheap cheap, but it isn’t so pricey that I can’t also get a PS4 and/or a XBnxt if I want one of those as well.

    I still use the Wii, btw. I can see me using the WiiU too. How much depends on what Nintendo does with from here. But even if only games from Nintendo came out, it would be worth it to me to own.

    Nintendo make some of the best games in the industry, imo.

    #16 4 years ago
  17. Erthazus

    @15, “Everyone knows ”

    your mom?

    I don’t buy a console because of the potential. I have PS3 (had Wii) before for the games that i wanted.
    Also, tech on consoles does not amaze me because it is always behind PC since launch for 3-4 years.

    @OlderGamer,
    “Besides its only 250usd.”

    where? In the third dimension? Who said it is 250 USD? No one.
    you think Nintendo will sell a console at a price of a 3DS? Are you serious?

    #17 4 years ago
  18. OlderGamer

    I bet it goes for between 250usd and 300usd.

    And man you just admited you bought a Wii because it had games you wanted to play. Then you sold it.

    So whats the difference between you doing that and me buying a system for the same reason, but not selling it?

    Selling it doesn’t change the fact that you bought one in the first place. Just because you no longer own those games doesn’t change the fact that they appealed to you and enticed you to buy ‘em.

    You need to let things go a bit bud.

    #18 4 years ago
  19. ManuOtaku

    I dont know why but people seem to hate nintendo just for the sake of it, really sad, i will be buying one and i will enjoy it just like i did with the wii before it, just too many good games to miss out, that and i also will pick ps4 and xbox 720 for sure, but i will support nintendo the most, they are just the more innovative of the bunch, and they will always try different things, the other two will only copy it and then enhace it.

    #19 4 years ago
  20. Hellequin

    @19

    Its because people like you that we react like that. Fanboys, Nintendo NEVER created none of the technology they using. Wii? Since when companies are using infra-red for “motion” control?

    Wii U? Who was the first with a tablet? everyone are copying everyone, Nintendo just modify those ideas to adjust for gamers. And Iwata surprised? My guess, investors are not fanboys, and before the hype around 3DS and the low sales, are you putting money on Wii U?

    Come on, be realistic, Nintendo losing profit year after year, and then came with a “HD” console, where you cant use more than one conroller (yeah, they say its SOOOOOO innovative, but cant suport two of then? wtf?). I was excited at the beginning, but i read about suport and specs and feel very sad. Im not buying at the launch and will wait 1 year at last to think on it. I really hope that i can back playing Nintendo games, since i hated Wii, but ill need wait more.

    #20 4 years ago
  21. RedBirdiii

    I think it’s time for Nintendo to do the inevitable; to leave building consoles and to focus on their games. Imagine Nintendo games with all their goodness being brought to the current HD consoles with better visuals, online capabilities, add ons/ patches and achievements/ trophies.

    I’m not saying that they’re not capable of standing between the other two technology titans, they are powerful enough and their power comes from the games they make.

    What do you think Nintendo? Are you considering the idea?

    #21 4 years ago
  22. Dralen

    The Wii wasn’t for me and this isn’t for me either. Nintendo just have never sold to me personally, they have never brought gaming to my level. Whenever I look at the games they promote, I just think – That’s for kids, not for me.

    It’s the exact same thing with Kinect; all the games that it works with are all casual gamer stuff, or get fit stuff, and that just does not interest my tastes as a hardcore gamer.

    #22 4 years ago
  23. JackTheLittle

    these are just specs.i’m sure it will sell very well.it,ll interest both casual and core gamers!
    just wait and see!

    #23 4 years ago

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