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

Friday, 17 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 If we stay in one place, we will become outdated.”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

  1. dreamcastnews

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

    #1 1 year 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 1 year 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 1 year ago
  4. Nam3M3King

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

    #4 1 year ago
  5. Djoenz

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

    #5 1 year 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 1 year ago
  7. techkenb

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

    #7 1 year ago
  8. Djoenz

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

    #8 1 year ago
  9. Legendaryboss

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

    #9 1 year 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 1 year 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 1 year 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 1 year 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 1 year 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 1 year 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 1 year 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 1 year 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 1 year 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 1 year 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 1 year ago

Comments are now closed on this article.

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  • The Division pre-alpha footage leaks, Ubisoft says it’s well out of date

    The Division fans finally got a look at Ubisoft’s MMO this week, but the publisher has said the footage is not in any way representative. Pre-alpha footage of the The Division was leaked this week, but has since been thoroughly smacked down by takedown notices. All that remains are a few screenshots and a GIF: […]

  • Microsoft HoloLens designer killed in hit and run accident

    Very sad news out of Redmond this week, as Mike Ey was killed in a tragic accident. Ey, 30, was one of the key project designers on Microsoft’s HoloLens AR headset. He was killed on Saturday morning in a rear-end collision. The driver of the second vehicle fled the scene but was tracked down by […]

  • AMD throws support behind VR with new low-latency anti-nausea tech

    GPU manufacturer AMD has released a new SDK compatible with “a broad set of VR devices”. Called LiquidVR, the tech is designed to “bring better content, comfort, and compatibility to VR applications” including games, simulation, entertainment, education, social media, travel, medicine, real estate and ecommerce, apparently. AMD said maintaining comfort and realism in VR environments […]

  • Danganronpa 3 in the works, but a long way off yet

    A new Danganronpa is happening. Danganronpa 3 is in the very, very early production stages, writer Kodaka Kazutaka has confirmed. Nothing about the project is “set in stone”, Kazutaka told Polygon, so there are no details to share yet; the characters and story may change several times before being finalised. The writer said he’s weighing […]

  • Call of Duty: Advanced Warfare MLG Pro League 2015 schedule announced

    Major League Gaming has announced the full schedule for the 2015 Call of Duty: Advanced Warfare MLG Pro League. The eSpots firm revealed two more seasons of Pro League, a live Relegation tournament for Season Three, and a season ending World Championship with $250,000 up for grabs You can watch all the action on MLG.tv […]

  • Happy Birthday PlayStation 2, you are almost old enough to drive

    Amidst all the GDC 2015 hoopla today, we forgot to wish PlayStation 2 a Happy Birthday. The system turned 15 years old today, going by its March 4, 2000 launch date in Japan. It was released in the west that autumn, and had shipped 100 million units in less than six years post launch. PS2 […]

  • Here’s what the final version of Valve’s Steam Controller looks like

    A look at the updated Steam Controller has surfaced via a hands-on post from Polygon. Valve said what you see in the images below is the final version of the controller. The controller has gone through numerous revisions since it was first revealed, but it seems Valve has decided on two touch pads which work […]

  • The Sims, SimCity developer closed down

    The Sims 4 developer Maxis has been shuttered, EA has confirmed. The Sims, SimCity and the rest of the Sim franchise has traditionally been helmed by Maxis, which had its flagship studio in Emeryville, California. Now EA has confirmed with Kotaku that this studio is being closed. “Today we are consolidating Maxis IP development to […]

  • Gigantic MOBA coming to Windows 10 and Xbox One with cross-play

    Today during GDC 2015, Microsoft announced that the new IP from Motiga called Gigantic will be cross-play enabled. Slated for Windows 10 and Xbox One, the five-on-five third-person battle arena game allows the player to select from an array of heroes with distinctive powers and play styles. Players will then make their way through areas […]

  • Here’s a look at Unreal Tournament DirectX 12 gameplay

    Epic Games is creating Unreal Tournament using Unreal Engine 4 running on DirectX 12, which Microsoft says “sets a new bar for visual fidelity.” DirectX 12 is a single API developers can access across Windows devices, which can result in a 20% improvement in performance over DX11 running on the same machine. The Unreal Tournament […]

  • Wireless adapter for Xbox One controllers out later this year

    Microsoft announced at GDC 2015 today it will that all wireless Xbox gaming accessories will be designed for and supported on both Xbox One consoles and Windows 10 PCs moving forward. Later this year, a wireless adapter will be released, allowing current Xbox controllers and future devices to be used wirelessly on PCs. This will […]

  • Microsoft offers up more details on Spencer’s GDC 2015 talk

    Microsoft has provided more details on Cross-Buy functionality between Windows 10 and Xbox One as well as the Xbox Live SKU and other announcements made during Phil Spencer’s talk today. During the session, the head of Xbox shared “the next step” in the company’s plans for a unified platform across all Windows 10 devices which […]

  • Wasteland 2 is coming to PlayStation 4 this summer

    Wasteland 2 is coming to PlayStation 4 as a Game of the Year Edition. inXile Entertainment announced the news on the PS Blog, noting the edition contains enhancements and improvements. The game has been ported to Unity 5, which was announced over the weekend, providing upgraded visual effects, “improved character models, upgraded environments, and Unity […]

  • Cross-Buy detailed for Windows 10 and Xbox One; Elite: Dangerous coming to Xbox One

    During Xbox boss Phil Spencer’s session at GDC 2015 today, it was announced Elite: Dangerous would release on Xbox One. Spencer also outlined cross-buy functionality across Windows 10 and Xbox One. Spencer’s talk started off with Frontier Developments announcing Elite: Dangerous for release this summer as a console debut on Xbox One, suggesting the Elite: […]

  • Longbeards Culture Pack available now for Total War: Attila

    The Longbeards Culture Pack is now available for Total War: Attila and it comes with three new playable factions. The Langobards, the Burgundians and the Alamans can be played in both single and multiplayer campaign modes as well as custom and multiplayer battles. A new feature called The Lay of Ybor is also included. It […]

  • Nvidia unveils Titan X as world’s “most advanced GPU” – video

    Nvidia revealed Titan X as “the world’s most advanced GPU” during Epic founder Tim Sweeney’s State of Unreal session a t GDC 2015 today. Nvidia CEO Jen-Hsun Huang took the stage during the panel stating it contains “8 billion transistors,” and has 12GB of RAM. Pricing wasn’t announced, but it was rumored back in January […]

  • Steam sale discounts titles announced for SteamOS

    With many of the year’s most popular games heading to SteamOS, Valve has decided to host sale in celebration. Here’s a short list of titles on sale. The full list of PC, Linux, Mac and SteamOS discounts can be found through the link. The Banner Saga Borderlands: The Pre-Sequel Middle-earth: Shadow of Mordor Batman: Arkham […]

  • PayDay 2 announced for SteamOS, celebrating with franchise sale

    PayDay 2 is coming to SteamOS, Overkill has announced. Still under development, a release date will be announced at a later date. “Making sure PAYDAY 2 is available on SteamOS felt like a no-brainer,” said Bo Andersson Klint, CEO of Starbreeze in the press release. “With PAYDAY 2: Crimewave Edition coming to the next generation […]

  • Magicka 2 has a release date and a crazy new trailer

    Magicka 2 has a release date for PC and the PlayStation 4, and Paradox Interactive has released a trailer featuring “Vlad’s latest lyrical triumph,” which is his rendition of the Game of Thrones theme. Magicka arrived on PC and PS4 May 26 and the game can be pre-ordered on PC beginning today, with PS4 pre-orders […]

  • Nintendo eShop schedule: Don’t Starve: Giant Edition, Never Alone, others

    Nintendo has sent over a list of titles heading to the eShop in 2015. The schedule contains titles such as Affordable Space Adventures, Runbow, Swords & Soldiers 2, Don’t Starve: Giant Edition, Never Alone and Mario vs. Donkey Kong: Tipping Stars. Below a preliminary list of games scheduled to launch in the Nintendo eShop on […]

  • Week 8: Can you win the weekly VG247 GTA Online playlist? Play tonight at 8pm UK time!

    We’re hotdogging tonight. I don’t even know what that means. Eight weeks of ridiculous death. Such a brave, true milestone. We’re going to celebrate two entire months of playing weekly GTA Online playlists with VG247 readers with Hotdogging, a set of six jobs I named completely at random. This one ends with a straight-up border […]

  • Puzzle platformer Four Sided Fantasy coming to PC, consoles in early 2016

    Curve Digital and developer Logan Fieth’s studio Ludo Land are bringing puzzle platformer, Four Sided Fantasy, to PC all major consoles in early 2016. Ludo Land are developing the PC version, with Curve Digital handling the console and Vita versions. Four Sided Fantasy tasks players with venturing across “dreamlike levels” by controlling and manipulating the […]

  • Tropico 5 arrives on PS4 in April – video

    A release date for Tropico 5 on PlayStation 4 has been announced. This is the franchise’s first foray onto PlayStation consoles. It arrived in Europe on April 24 and in North America on April 28. A Limited Edition has also been announced, and it includes The Big Cheese DLC and the Bayo Del Olfato sandbox […]

  • Metal Gear Solid 5: The Phantom Pain Limited Edition PS4 releasing in Asia

    A limited edition Metal Gear Solid 5: The Phantom Pain PlayStation 4 system will be released in Asia. The system and its DualShock controller were designed in collaboration with Konami Digital Entertainment and targeted for the Asia region, per Gematsu. It will be released as part of PS4 Metal Gear Solid 5: The Phantom Pain […]

  • This video shows Sid Meier’s Starships being played on iPad

    Sid Meier’s Starships will be released on iPad alongside Mac and PC, and to give you an idea on how it plays on the tablet, a new video has been released. Watch below as Pete Murray and lead producer Stuart Zissu show off the iPad version. The 4X space-strategy releases on March 12.

  • Wolfenstein: The Old Blood announced as standalone prequel to Wolfenstein: The New Order

    Wolfenstein: The Old Blood, a standalone prequel to The New Order, will release May 5 on PC, PS4 and Xbox One. The game takes pace in 1946, and and players take on the role of B.J. Blazkowicz as he embarks on a two-part mission in Bavaria. Part one, Rudi Jäger and the Den of Wolves, […]

  • Observer Mode coming soon to Evolve as a free update

    Observer Mode will be released for Evolve as a free update for all platforms, 2K and Turtle Rock have announced. The community feature was designed to give Evolve players the ability to observe and add commentary as well as livestream, allowing a sixth user to “passively enter a custom game” with the ability to switch […]

  • Dragon Quest Heroes and PS4 top Media Create charts in Japan

    The PlayStation 3 and PS4 skus for Dragon Quest Heroes were the top sellers on the Media Create charts in Japan, moving a combined 594,749 units. Elsewhere on the chart, The Legend of Zelda: Majora’s Mask 3D was in third place with 39,751 units moved, and last week’s top seller, God Eater 2: Rage Burst, […]

  • Watch Hideo Kojima answer lots of your burning Phantom Pain questions

    What’s better than learning the official release date of MGS5: The Phantom pain? Hideo Kojima talking more about it, of course! Hideo Kojima has decided to answer a few fan questions about Metal Gear Solid 5: The Phantom Pain, to help boost everyone’s hype to insane levels. He talks about the game’s story, his relief […]

  • MGS5: The Phantom Pain Day 1 and Collector’s Edition revealed

    Konami has officially revealed the release date of Metal Gear Solid 5: The Phantom Pain alongside the game’s Day 1 and Collector’s Edition. Metal Gear Solid 5: The Phantom Pain will release September 1, worldwide, as previously leaked. It will be available on PlayStation 3, PlayStation 4, Xbox 360, and Xbox One. The PC Steam […]

  • EU Club Nintendo: Legend of Zelda: A Link Between Worlds soundtrack back in stock

    Club Nintendo members in Europe can once again pick up The Legend of Zelda: A Link Between Worlds soundtrack. For 3000 Stars, members of the program will receive the double-CD soundtrack which features 89 tracks with liner notes from Ryo Nagamatsu and 12 sheet music excerpts. It also comes with 16 Milk Bar Musician pieces. […]

  • HTC apologises over “confusing” Half-Life VR comments

    HTC has misspoke when it talked about Half-Life coming to VR headset Vive. HTC chairwoman Cher Wang has apologised over the comments she made yesterday about the possibility of Half-Life coming to Vive, the VR headset it’s manufacturing with the help of Valve. Sources close to Valve, have indicated to the BBC that the developer […]

  • What do Heists and Daily Objectives tell us about the future of GTA Online?

    Daily Objectives could be more important to GTA Online than Heists. These theories and more, from a giddy Matt Martin. Yesterday Rockstar dropped a bombshell. Not only is it releasing Heists next week – the mythical 4-player missions for GTA Online – but it’s also going to be introducing daily challenges and more modes to […]

  • Breaking down Hardline Premium, is it worth it?

    Having been announced just a few days ago, the Premium service for Battlefield Hardline has been a topic of constant debate among the Battlefield community. Many look at Hardline as a Battlefield off-shoot that will just tide everyone over until Battlefront comes out in the fall. EA has other plans however, announcing a $50 Premium […]