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Nintendo should “abandon” old business assumptions, considering mergers and acquisitions – Iwata

Friday, 31st January 2014 17:24 GMT By Stephany Nunneley

Nintendo president Saturo Iwata has stated in an interview that the company should “abandon old assumptions” regarding its business and are considering mergers and acquisitions as an “option.”

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Speaking with financial site Nikkei, Iwata also said Nintendo plans to ‘step up’ its share buybacks.

He also outlined other plans to help financially stabilize the company.

“We’ll change the way we sell products, by managing customer information via the internet,” he added. “We’ll offer discounts to steady, regular customers. We’ll cultivate emerging markets and launch new businesses in health and other areas.

“In an emerging country, you can expand the user base only after you offer a product line different from advanced economies in pricing.”

Iwata also said Nintendo has sizable cash reserves which were built up “when earnings were strong” as it is vital to have “deep pockets” in order to recover should something go horribly wrong.

Nintendo posted it financials earlier this week, during which time Iwata noted to investors he would be taking a 50% pay cut for the next five months.

Thanks, MCV.

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2 Comments

  1. Luciferous

    He talks the talk, but can he make Nintendo walk the walk?

    Only time will tell.

    #1 10 months ago
  2. salarta

    He understands that they need to change how they do business. He understands that people like discounts for loyalty and that emerging markets need support. That’s about all he seems to know.

    His remark that they need to go into health sounds simultaneously like he’s going to try to force Nintendo into becoming like Sony and Microsoft (as in, go into multiple other businesses, not just video games) but also like he’d rather be working for a medical and health/wellness company than a video game company. It also sheds an entirely new perspective on Nintendo’s obsession with casual fare like Wii Sports, Wii Fit, and things like the Vitality Sensor.

    So on the one hand, these remarks make it look more likely that the earlier reports translated as that Nintendo needs to be more kid-focused were in fact mistranslations, and that Iwata meant to say the opposite, that they need to expand beyond just that demographic. On the other hand, it seems like he still doesn’t know what he’s talking about.

    It’s also kind of notable that Nintendo’s focus on things that appear to provide health isn’t exactly being pushed by the medical industry, and I assume hasn’t been extensively tested. I know we have at least one report of the Wiimote being useful for older people and therapy, but that only goes so far, and there are potential questions in if there are better alternatives or if these things could cause harm in some other way.

    #2 10 months ago

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