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Iwata tells investors he does “not see a dark future for Nintendo”

Wednesday, 6th November 2013 09:59 GMT By Dave Cook

Nintendo president Satoru Iwata has stressed that he does not see a dark future for the company and has explained why he is unwilling to change the company’s steep financial forecast for the full year. It comes as part of a new investor Q&A article.

Replying to queries over potential down-sizing in this investor Q&A, Iwata said, “We need a company with a lot of muscle, but a company that also has no excess fat — one that makes smart spending decisions.”

That said, Iwata repeated his stance that, “Restructuring the workforce is not the first option we consider even when cost cutting is required.”

Iwata added, “I would like you to understand that this is because we do not see a dark future for Nintendo.”

When asked how Nintendo hopes to meet its ¥100 billion operating income projection by the end of the financial year, he replied, “I believe that my ultimate responsibility is to maximize the long-term corporate value of Nintendo. That is how I view my role, but on the other hand, I am not saying that the current financial forecast has become unattainable. As I remarked just a while ago, the annual financial performance of a video game company rests heavily upon its success in the year-end sales season.

“There would of course be a significant difference between the most optimistic and the most pessimistic scenarios. This is the inevitable fate of any video game company, and even if one may hope it to be more foreseeable, we operate in an environment where it is impossible to know the outcome of a product we have produced until consumers have tried it for themselves.

“What is more, how players influence the value of our products and turn them into hit titles through interacting with each other, and thereby creating buzz in society, is simply beyond our reach. All we can do is offer the best entertainment that we can and do our best to motivate our consumers to talk about our products, but there is inevitably a fair degree of uncertainty in our performance. Therefore, I do not think that it is the right time to change our financial forecast.”

The Q&A article follows Nintendo’s most-recent financial report. It revealed that 300,000 Wii U consoles were sold during Q3, yet the company has decided to keep its ¥100 billion income prediction.

Can it be done? Let us know what you think below.

Via IGN.

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19 Comments

  1. salarta

    “How players interact with each other can create buzz for our content. Now excuse me, I have to oversee the company shutting down a function of our hardware that allows players to interact with each other. Because they can privately make lewd exchanges if they know each other’s friend codes. Because our only demographics are kids and families.”

    #1 11 months ago
  2. Francis O

    New Super Mario Bros U bundles sold out at Target and GameStop.com

    The 3DS absolutely killing it with Pokemon and Monster Hunter.

    Super Mario 3D World dropping in a couple weeks. Donkey Kong Country, Zelda U, Mario Kart, Monolith Soft’s X, and Smash Bros next year.

    Hell no Nintendo’s future isn’t dark. Things are just getting interesting.

    #2 11 months ago
  3. Fin

    @2

    Wii U won’t be able to compete with nextgen, it’ll limp through this year and maaaybe next, but without third party support (which isn’t forthcoming), and being severely outpaced by competing consoles, 2015 looks very dark indeed.

    3DS should be fine for another few years.

    #3 11 months ago
  4. Dragon

    To be fair, he is right. Although one has to describe what “dark” is.

    If its means Ninty going down, not happening. But they have a big problem on their hands as they have only one hardware to rely on (3DS family) if Wii U remains an untenable biz as it is now.

    They really need to diversify, and fast. Being a one trick pony (in this case, handhelds) wont last too long.

    And what salarta said. They also need to attract different audiences. Such single-minded draconian halting of features for the sake of “kids” needs to change.

    #4 11 months ago
  5. YoungZer0

    @2: Beautiful denial.

    #5 11 months ago
  6. Gheralf

    To me, Iwata is starting to seem like Gandhi of the gaming world.

    #6 11 months ago
  7. Panthro

    It will be a very very sad day for me when nintendo does shutdown, too many great memories are linked with that company.

    It will feel weird to play the nintendo exclusives on other consoles id thats the way they have to take it someday like sega.

    :,( I want nintendo to live forever!

    #7 11 months ago
  8. Samurai

    @7
    The problem with Nintendo dying, is that Zelda, Metroid, and Mario won’t exist anymore as Nintendo will be taking down their IPs with them.

    #8 11 months ago
  9. YoungZer0

    @8: No they won’t. They’d be utter fools if they do that. The console manufacture might die, but not the developer.

    #9 11 months ago
  10. Legendaryboss

    @Young
    What other choice does he have? Besides changing his magical list when things don’t pan out.

    #10 11 months ago
  11. SplatteredHouse

    I’m sorry, but they shouldn’t allow Mr. Iwata to overlook the most pressing issues when in these meetings: I insist upon an update on the state of Nintendo’s canteen! :p

    #11 11 months ago
  12. polygem

    guys. again. the wiiu might not sell so good right now (who knows, maybe it´ll change, there´s a good chance for that. it still is a very fresh console and there´s some crazy good stuff for it in the pipeline)…but no matter what will be happening to the wiiu – even if all the wiius worldwide would explode right now, including those on the assembly lines – nintendo wont go anywhere. they will continue to make hardware in the future. they have shitloads of money. their ip´s alone are worth billions.
    b.i.l.l.i.o.n.s.

    #12 11 months ago
  13. CyberMarco

    @12 What about their image/reputation though?

    I wouldn’t be pleased to see Nintendo leave the WiiU for dead if I was a WiiU owner, even if they can deliver a better console compared to the PS4/XB1.

    #13 11 months ago
  14. noamlol2

    drop the gimicks nintendo

    you had your run, but still to handheld

    the Wii U is nothing but a big fat lame ass gimick

    the Wii’s sucssess is the Wii U failure cause 70% of the people who bought a Wii bearly used it because it outright sucks (either used as paper wight or sold it)

    nintendo should stay the fuck out of the home console bizz and stick to handhelds
    if they want profits that is

    #14 11 months ago
  15. Joe Musashi

    Yep, the future’s so bright Iwata’s gotta wear shades.

    JM

    #15 11 months ago
  16. polygem

    @13: that´s the thing: dropping it now would hurt their reputation. they wont do that even if they´ll lose money by continuing supporting it. they will continue supporting it for a while even if sales wont be that great. we will see some outstanding titles on the system, no matter how the sales will turn out – because otherwise it would hurt their reputation for real.
    overall the wiiu is a great device really, it´s rocksolid, miiverse is great too, it has great games as well, the pad works and is fun to use. it really is nothing to be ashamed of. if they will be able to deliver great, must have games for the system (and it looks like we will see these games soon) – then their reputation wont be hurt at all despite soso sales, their ip´s will continue to be worth more and more cash if they do not drop in quality, no matter the system they are on and the next console can become a bigger success again.
    dropping wiiu now, or the insane vision of a third party dev nintendo – THAT would hurt them in the long run.it would be a wrong move.

    #16 11 months ago
  17. Joe Musashi

    Their reputation is hurt through the perception of the adoption of the system. Especially in contrast to their previous 100m+ selling system. See PS2 -> PS3. That perception is made by everybody, whether they invest in the system or not.

    JM

    #17 11 months ago
  18. viralshag

    Dropping the WiiU would barely cause their rep any damage.

    Most people don’t even know it exists, what it does or why they should buy it.

    #18 11 months ago
  19. The_Red

    It’s not the Nintendo that faces a dark future thanks to 3DS. It’s the freaking Wii U that is in trouble. Of course they probably won’t see any future for it, dark or light.

    #19 11 months ago

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