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Analyst: Nintendo should go third party, Iwata says it’s not as simple as “moving Mario to smartphones”

Friday, 17th January 2014 16:34 GMT By Stephany Nunneley

Industry analyst Michael Pachter has once again suggested Nintendo go third party should hardware sales continues to slide. But first, it must “acknowledge the problem.”

Speaking on Twitter (thanks MCV) following Nintendo’s latest financial report, the Wedbush Securities analyst said Wii U hasn’t “resonated with consumers,” and despite the viability of 3DS, sales of the handheld are down 50% compared to DS levels.

“Nintendo software is still great and will continue to be,” he said. “However, if software remains proprietary, sales are limited when they sell fewer hardware units. The first step to recovery is to acknowledge the problem. I have not seen anything from Mr Iwata that acknowledges that there is a problem.”

Going third party is something Nintendo has refused to do time and time again, and today during an investor’s meeting, Nintendo president Satoru Iwata once again said it is not going to happen under his watch as a new business structure is looked into.

“We are thinking about a new business structure,” Iwata stated. “Given the expansion of smart devices, we are naturally studying how smart devices can be used to grow the game-player business. It’s not as simple as enabling Mario to move on a smartphone.

“We cannot continue a business without winning. We must take a skeptical approach whether we can still simply make game players, offer them in the same way as in the past for ¥20,000 or ¥30,000, and sell titles for a couple of thousand yen each. The way people use their time, their lifestyles, who they are — have changed. If we stay in one place, we will become outdated.”

Iwata also said he would not resign from his position within the company, despite holding himself responsible for Nintendo’s poor performance.

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19 Comments

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  1. dreamcastnews

    Maybe they should just make a Nintenphone? Japanese would be well up for that…. I think….

    #1 3 months ago
  2. Joe Musashi

    I don’t think plonking Mario on Android is a solution either.

    But using twitter and facebook etc, engaging in mediums that your [desired] customer base are actually using will raise visibility. Sending out cute messages to your existing customers via their Wiis and 3DSs or Nintendo Direct videos on youtube is NOT dealing with the customers you DON’T have.

    Make companion apps on these devices to leverage your key IP. Make free apps like Pokemon Encyclopedia and use those to get people hungry from your money-making platform-specific software.

    Make a wholesale “Nintendo App” to make a hub that the smartphone demographic can have. Use it to launch, promote, educate on your content.

    Make smart-phone specific IP. Make a new brain-training or Nintendogs phenomenom but on smartphones. Bring Nintendo’s expertise in creating engaging content to get people’s ATTENTION. Then redirect that attention to platforms where you can leverage the most profit and revenue.

    In other words: do what the rest of the commercial world has been doing for the last 5 years.

    JM

    #2 3 months ago
  3. ManuOtaku

    I think they are better offering the WiiU with all their previous games for free to be accesed in their store, that might turn things around.

    But i agree with Iwata, i think going to the smart phone place or going to third party only arent the solution.

    p.d
    @2 for the first time i agree with your comment

    #3 3 months ago
  4. Nam3M3King

    Team up with Sony like you was suppose to when Sony first approached you then dominate the gaming industry

    #4 3 months ago
  5. Djoenz

    @4
    Imagine a playtendo OMG that would rape the gaming industry and tore its arsehole in half!!!!!!!!!!

    #5 3 months ago
  6. Dark

    http://realgamernewz.com/wp-content/uploads/2013/12/Super-Mario-3D-World-PS4-Bundle.png

    We all know it’s coming.

    #6 3 months ago
  7. techkenb

    @nam3M3King lol funny a lot of people don’t know that. The Playstation was supposed to be Nintendo’s

    #7 3 months ago
  8. Djoenz

    @7
    I think that enough people know that. If Tendo didnt decline there wouldnt be a PlayStacheun.

    #8 3 months ago
  9. Legendaryboss

    Another critical Ninty article? It’s multiplying, run!

    #9 3 months ago
  10. melonbuster1

    If they sold out it would be to Microsoft. . Because of the Sony hate.. they feel responsible for the play station brand and they feel any success sony has was theirs. So no sony and Nintendo won’t share the bed together. . But a Microsoft/Nintendo bond would make Japan get on board with the xbox1. .

    #10 3 months ago
  11. OmegaSlayer

    Nintendo didn’t get that Wii was a longshot sales wise but not a machine that 100% of their customers loved.
    Same with DS and 3DS.
    They had not realized that Wii was something like Monopoly or Trivial Pursuit that people only took out from the box when friends visited.
    They don’t realize that lots of wannabe MILFs bought it hoping to stay fit.
    They didn’t get that sons purchased DSs and 3DSs to their parents with BrainTraining and those 60-80 years old people keep it in the drawer and nevere used it.

    I have a store (not gaming related) and I heard those stories, mooooore than once.

    The best Nintendo can ever hope to get with a home console is Gamecube sales.
    They will plummet without even understanding how due to their arrogance.

    #11 3 months ago
  12. bradk825

    If Nintendo were to go the way of Sega I’d be happy that it was at least living on making Mario and Donkey Kong games. Their games are splendid and have been for as long as I’ve been playing games, starting on my NES.

    If the annoucement is ever made that I can buy Nintendo games on my Xbox, I’ll shit myself right then and there. Then after I go home and change, I’ll buy a game or two.

    #12 3 months ago
  13. Francis O

    Nintendo should go third party, when the 3DS outsold the PS3, PS4, Xbox One , and Xbox 360 last year?

    How were sales of the PS3 compared to the PS2? I haven’t heard Pachter say a word on that.

    How are sales of the PS Vita to PSP? Sony Should stop making PS Vita hardware right? Of course not.

    Comparing the 3DS to the DS is stupid. The 3DS is the top piece of hardware on the market right now. Can’t get much better than number 1.

    #13 3 months ago
  14. Gama_888

    IMO it will be a great day for gaming when nintendo go third party. All those great Ip’s to be released on other consoles will be amazing!!

    #14 3 months ago
  15. Just-Joe

    Oh Pachter saying this? Big shock.

    @14 yeah, because that worked so well for Sega. You can’t wait for Mario games that half assed because Nintendo is now retriced to Microsoft and Sony? Yeah, that’ brilliant.

    #15 3 months ago
  16. CPC_RedDawn

    People are only saying this because of how successful the Wii was. Coming off the likes of the Gamecube (still an awesome system) which was misadvertised from the start and with the arrival of Microsoft into the mix the Gamecube was doomed (sales wise).

    Nintendo have more money left in their bank than god himself. Only a few months back Patcher was saying that Nintendo have enough money left over to release FIVE… yes FIVE more FAILED… yes FAILED… consoles to market before they even consider going third party.

    Now this does not mean the shareholders wont step in and demand they go third party. Meaning Iwata has no leg to stand on.

    He should of left Nintendo when the GC was coming out. He was made President and failed with the Gamecube (sales wise software was exceptional) then he struck gold with the Wii… which was again Miyamoto’s idea.. now hes trying to emulate that success with Wii U and jumping on the bandwagon with the tablet craze.

    If Nintendo come out in the next two years with a Nintendo branded Smartphone, Tablet, and Console (maybe just the first two) that has backwards compatible with their history of games and charge people a monthly fee to access them. I mean come on you could stream the original mario game easily on even a 3G connection lol.

    Playstation Now is what Nintendo should of launched the Wii U with preinstalled and give everyone who purchases the console three months for free then a subscription after that. Access to every Nintendo game ever made from the Mr.Game & Watch games to the NES, SNES, N64, Gamecube and Wii would of been a MASSIVE system seller! This may have drawn third party to the machine, in which Nintendo could of licensed out their IP’s to other companies who could make a main game for the Wii U only and then release a smaller version on all smartphones, and tablets.

    But Nintendo won’t listen to me, and neither of us. Never will… never have. It is a shame. I love for what they have done for the industry.

    #16 3 months ago
  17. CPC_RedDawn

    @15

    You do realise that BOTH Microsoft and Sony, and even Apple and Google would give their left nut to get Nintendo to be exclusive on their system.

    Mario, Zelda, Pokemon, etc = CASH and tons of it.

    One of these big three could snap up Nintendo and then leave them alone to release the family friendly games.

    #17 3 months ago
  18. MrWaffles

    Nintendo has made several positioning mistakes after the Wii.

    1) The Wii U value proposition isn’t clear, people STILL confuse it with a Wii accessory.

    2) Disastrous and confusing name: it just reinforces the “peripheral” aspect of it, not good.

    3) The 2ds was practically admitting the 3d tech was a mistake and the price was too high. Lowering the price of the current 3ds would’ve worked beautifully together with the Pokemon X/Y launch.

    4) Inconsistent 1st party game launches. Not in terms of quality, but in terms of timing. There wasn’t any first party released for a while, then there was like 5 in the same quarter, not good, you’re making the customer make a hard choice (then the choice is not buying anything, so as to have no regrets later).

    #18 3 months ago
  19. DoctorFrag

    Releasing Nintendo games on smartphones will be company’s first step to collapse. Of course, Nintendo WILL make a lot of money in short term but after that Nintendo will be forced to play on the rules set by other companies. Ridicullously low prices on smartphones, forced DLCs, unfinished, rushed games – make no mistake, all those things will hit Nintendo.

    Instead of listening to analytics who only think about short term profit, Nintendo should again build it’s own, new market just like they did with handheld consoles and Wii. WiiU isn’t succesfull because it doesn’t try anything new. I hope N will have streght to go on and release next home console that will blow our minds not with latest GPU but true innovation.

    #19 3 months ago