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Nintendo Considering "New Business Structure"

Wii U has continued to underperform, and it's causing internal reflection at the company.

It's been a rough day for Nintendo. We don't usually post financial news on Giant Bomb, but this is big.

No Caption Provided

Nintendo is forecasting a $250 million loss for the current fiscal year, ending March 31, and has slashed its sales forecasts for Wii U from nine million to 2.8 million.

This news was followed by a press conference with Nintendo president Satoru Iwata, which was attended by Bloomberg. At the event, Iwata provided a potentially revealing quote about Nintendo's future:

"We are thinking about a new business structure,” he said. “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.”

Iwata is not expected to step down from his position as Nintendo's leader.

Nintendo could be a very different company a year from now. But how? We'll have to see.

Patrick Klepek on Google+

332 Comments

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huser

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Edited By huser

@erikschroder said:

@budwyzer said:

Nintendo should just go the way of Sega and just make games for other platforms.

You know, I've thought about it… and I'd be okay with that.

Really? Cause Sega is making so much great games nowadays?

I'm thinking much of that sentiment is espoused by folks that aren't Nintendo fans to begin with. So if Nintendo would just kindly drop off the radar so much the better.

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DjTonySnark

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Make just ONE Nintendo franchise multi-platform, and once Nintendo sees how much money they will make, they will only ask themselves why didn't they do this sooner.

I'm ready for change, guys.

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Whamola

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Edited By Whamola

The WiiU just isn't exciting in any way.

It's too expensive because of a tablet that I don't want (and hasn't been used creatively yet), so it can't be the "second system" that Nintendo has relied on for the past few generations. Seriously, I had the PS1 and the N64, then the PS2 and Gamecube, then the PS3 and Wii, but the WiiU is way too expensive to buy just so I can have a few decent Nintendo exclusives.

The graphics are a generation behind, which would be fine if there was a flood of creative games being released for it.

The Virtual Console is kind of pointless. This was a huge problem with the Wii as well, a bunch of great games were released at the beginning, and then nothing.

The number of games that have been released or are going to be released that are interesting, I can count on one hand with fingers to spare.

I'm not a Business major or anything, but I CAN tell you what would need to happen for me to buy a WiiU:

1. Drop the price, either by making the tablet cheaper, or dropping it fully.

2. In between huge releases, have as many smaller e shop games as possible. I don't mean indie stuff (although that would help), I mean really simple games Nintendo makes themselves. If a person working on the next Mario game wants to make an arcadey shooter or simple platformer with a cool little twist, let them! Not only is it a more steady stream of content, but who knows what interesting stuff might be created (and possibly made into new franchises)

3. Make the Virtual Arcade worthwhile. What Jeff and the other guys thought NES remix was GOING to be sounded awesome. Release as many old NES/SNES/Sega games as possible, but give people a reason to buy them instead of just downloading roms. This could be as simple as putting up online leaderboards for each game, weekly challenges, or little rewards if you beat the game (say an 8-bit master sword for your Mii if you beat the original Zelda).

4. Release some goddamned games. If I bought a WiiU tomorrow, I'd buy Super Mario World, and maybe Pikmin 3. After that, what else is there? Smash Bros and that Fire Emblem X Shin Megami game sounded interesting. There's no Zelda, no Metroid, no F-zero, no Kid Icarus, no EarthBound, and nothing else. It's annoying because Nintendo has by far the best IPs in the video game industry, but instead of using them, it's just Mario games over and over. I'd KILL to see them go back to their older games and re-imagine them. Imagine Balloon Fight as a multiplayer deathmatch party game, or Excitebike as a Trials Evolution style racer, or a new Ice Climbers. Hell, try to do stuff that wasn't first party. I'd LOVE to see a new Star Tropics or City Connection.

The LAST thing I want to see is Nintendo pumping out a bunch of pointless garbage for mobile devices.

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Illuminosopher

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@goldanas said:

@fobwashed said:

I read news that the new Mario game was outsold by Knack.... crazy.

As someone who purchased both games, I can tell you that I played Knack more, and was more invested in it during my play-time. That says something about Mario.

Actually I think it says more about you.

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deactivated-590b7522e5236

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As a latent Nintendo fan this is a little depressing, i want nintendo to continue to do watever the hell it wants (even if i hate the result) since they seem like the only console manufacturer with a vision (sans valve). If Nintendo's future has anything to do with gaming without buttons just because they are chasing the ios gravy train, then i'm out, completely out.

Oh also, Iwata seeeems like a good guy, i don't wanna see him go just yet.

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The_Tolman

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Edited By The_Tolman

Guys, I really like my Wii U!

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Illuminosopher

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I would like to point out how everyone is always ready jump on Nintendo about money problems, but you really never hear about how Microsoft has lost around 3 billion dollars in the last 10 years with xbox and the Ps3 didn't turn a profit until 4 years after it came out, but heaven forbid Nintendo has a bad year or two.

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fobwashed

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@goldanas said:

@fobwashed said:

I read news that the new Mario game was outsold by Knack.... crazy.

As someone who purchased both games, I can tell you that I played Knack more, and was more invested in it during my play-time. That says something about Mario.

Actually I think it says more about you.

If I bought Knack w/my PS4 I prolly would have spent more time with it than I have with Mario, but I didn't buy Knack due to the reviews. I actually have only played the PS Plus stuff on PS4. Also, this'd be the case because I rarely touch my Wii U but what I have actually played of the Mario game was pretty damn good.

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specialkiz13

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Edited By specialkiz13

@dizzuncan: Thanks for the heads-up. Plan B might be to moan at customer support until they cave and give me what has been industry standard since before I can remember.

Plan A is that hopefully they can repair it under warranty.

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scottygrayskull

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I wish I could care enough to buy a Wii U. Well hopefully they'll finally pull their heads out of the sand and stop acting like it's still the 90s.

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Edited By Raven10

The first thing they need to do is release a new model of the Wii U with an entirely different name. If they want to stick with the Wii branding then either Wii2 or Super Wii would get the point across pretty well. Considering there are gamers who are pretty knowledgeable about the industry who still think the Wii U is just a new controller for the Wii, I don't see how Nintendo has any hope of getting the average person to understand that the Wii is a whole new system. Then they need to hire a new marketing firm and that firm needs to focus on how the Wii2 is different than the Wii and why it is worth getting it over the Xbox One or PS4.

Personally I think Nintendo's problem right now is that they just aren't doing a very good job making people aware of the Wii U's existence and even people who know there is something called the Wii U don't really understand what exactly the device is. They need to rebrand the device, and improve their marketing. Then the next step is vastly improving their online services, especially in regards to unified accounts and sharing content between consoles using the same account. And lastly they need to introduce a Wii U model with either a hard drive or greatly expanded flash memory.

The core Wii U console is fine. It's just the stuff surrounding it that isn't working.

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lockonandfire

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Edited By lockonandfire

So how bad is Nintendo's position now compared to the where it was at after the N64? Or after the Gamecube? I see doom and gloom forecast, but surely after the huge successes of the Wii the company is in a stronger position now than it was in either of those cases?

They're the last relic of how videogames used to be, and they still make games that revel in that childlike wonder and fun. It'd be a real shame to lose that, which would be guaranteed if the company went third party.

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EuanDewar

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HAILINEL

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JamesJeux007

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@aquacadet: I am not disagreeing. I mean, it really sucked a lot when I played Nintendo Land and not only did you have to use Wiimotes for most of it, but you need to have the silly Motion plus attached to it, which I only had 1 of and I couldn't play with my brother and sister.

But there are a lot of things I really love about this console. The Miiverse is really great and the way it has been implemented in recent Nintendo games (Windwaker HD and 3D World) is incredibly smart. The Game Pad is actually a really good controller. The Gyroscope works surprisingly well and it feels great playing with the controller in hand for extended stretches of time. The fact that some games have a GamePad only mode is way more useful than I would've thought. I can just pick up my controller and play some 3D World or Rayman Origins in bed or do my daily Wii Fit really quickly.

What I'm trying to say is I agree, a console with not a lot a great games is not a great console, but the rare games I've played on the system have been great experiences. It's more Nintendo's fault that the console is failing more than the console itself, if that makes any sense.

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If Nintendo put ALL of their old releases on Virtual Console/e-Shop in this region I would go buy a WiiU. Trying to find a legal route to play all of the old childhood classics of NES and SNES, especially with a controller that feels right is nigh impossible. A system for 299.99 that is basically every Nintendo system... Yes, I want that.

Also, Windjammers would be a system seller. Do that.

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sionweeks

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Kevjjscott

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@patrickklepek: Nintendo should stop developing for the Wii U. Stay w/ the 3DS and seriously think about making a Nintendo branded Steam Box w/ a better e-shop and and a destination for all their 1st party titles. Most the development has already been done. Valve would welcome them w/ open arms. It could be out by Holiday 2014.

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I'm hoping its a price re-structuring. Their VC games are way over priced. So are their physical copies.

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Guys, I really like my Wii U!

Great! If you could just buy one for all of your friends and family, as well as about 5 or 6 games per console, that would really help out.

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freakin9

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Maybe Nintendo is going to transition into wearable Game and Watches.

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ripelivejam

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@budwyzer said:

Nintendo should just go the way of Sega and just make games for other platforms.

ORIGINAL THOUGHT ALERT

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ripelivejam

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@goldanas said:

@fobwashed said:

I read news that the new Mario game was outsold by Knack.... crazy.

As someone who purchased both games, I can tell you that I played Knack more, and was more invested in it during my play-time. That says something about Mario.

Mario is definitely a better game, undoubtedly, but it's also so much more boring. There is just nothing interesting about Mario anymore, and the Duplo Blocks aesthetic is really not fooling me anymore.

i'm sorry, but there's something wrong with you.

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striderno9

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I'd be sad to see Nintendo change direction but if it helps them survive maybe a handheld only company?

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ch3burashka

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@budwyzer said:

Nintendo should just go the way of Sega and just make games for other platforms.

ORIGINAL THOUGHT ALERT

MINDCRIME DETECTED

ALERTING PROPER AUTHORITIES

GLORY TO ARSTOTZKA

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Edited By jimmyfenix

@striderno9: Even though 3DS had an amazing year they still failed on meeting expectations for the 3DS. I think Nintendo must reboot the company and produce a less expensive handheld if they become a handheld focused company.

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Edited By AlexGBRO

2014 will tell us if people still care about Mario Kart or SSB ( hope those games came in the spring ) if those games do not move the system then nintendo will just focus on the 3ds

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@erikschroder said:

@budwyzer said:

Nintendo should just go the way of Sega and just make games for other platforms.

You know, I've thought about it… and I'd be okay with that.

Really? Cause Sega is making so much great games nowadays?

Sega do not rely on games anymore. Since the merger with Sammy they have over $4 billion in revenue in many markets in entertainment. They are a healthy business. Of course that comes at the cost of games for western audiences. I am still waiting for Yakuza 5 Sega.

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deactivated-64c89b592b282

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It's happening! Nintendo pinball tables!

A million times yes.

Loading Video...

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flippyandnod

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Nintendo considering making huge piles of swag by producing games for other platforms, especially mobile ones.

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jasondesante

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Edited By jasondesante

Nintendo releases a handheld that runs on Steam OS and lets you not only play your Steam games on the go, but all the Nintendo games, eshop, virtual console. (Why hasn't the Steam app on Android let you play Android versions of games you own?)

Did I mention Nintendo makes the most awesome controllers? So for a hardware maker Nintendo is literally the best choice if Valve wants Steam OS to succeed in the living room, because lets be honest that Steam controller isn't going to convince many people to care.

I really want the next generation of Nintendo systems to run on Linux/Steam OS, because it is just the best idea.

Sheep saying Nintendo is doomed are really really really dumb. They probably played Mario 3D World and never noticed the tempo synced animations....its not like theres no videos on youtube showing that off. Just like how everyone hates on Wii Music and it seems like only one person on this planet outside of Nintendo loves that game. The amount of great Wii U games I have is a larger number than the amount of great Wii games that I had at the same point in time in the console's life. The games are better, just like 3DS over the DS.

Maybe if sheep paid attention then they will sell more, but at the moment it is ruled by sheep. Just let the sheep play with their dull nothing, and become reinspired by awesomeness. No big deal at all. Let the sheep get dumber and say again and again how excited they are for a living room console that runs linux and the designers of the controller still haven't decided on a final shape or control scheme. Like Kid Icarus on 3DS or Wonderful 101 on Wii u, both are perfectly suited for the controller. Will that ever happen with the Steam Controller?

If Nintendo fails it will be because no one paid attention and were too busy giving money to crooks who didn't deserve it.

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Edited By Dalai

I guess the good news is that Nintendo knows what they've been doing the past 2-3 years isn't working and they can fix whatever problems they have before going under. I highly doubt they're leaving the hardware business after the Wii's success just a generation ago, but maybe the Wii U's life will be cut a year or two short in order to bring in a new console that can match or even best what the PS4/Xbone offers? Who knows. I think having a less powerful system definitely hurt Nintendo this time around since the Wii U controller didn't catch on like they wanted.

Personally, I think Nintendo has to create some new IPs that can maybe spark new life into the company. Not every game has to star Mario or Link or Kirby or whoever. A new proper Mario and Zelda game every few years is fine, but perhaps give those Mario spin-offs a break so the developers can make something new and exciting.

I'm a staunch Nintendo fan, but even I know changes need to be made. I doesn't have to be as drastic as going the way of Sega, but a shakeup is needed.

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@goldanas said:

@fobwashed said:

I read news that the new Mario game was outsold by Knack.... crazy.

As someone who purchased both games, I can tell you that I played Knack more, and was more invested in it during my play-time. That says something about Mario.

Mario is definitely a better game, undoubtedly, but it's also so much more boring. There is just nothing interesting about Mario anymore, and the Duplo Blocks aesthetic is really not fooling me anymore.

No... it says a lot about you though.

Thank god Mario has more interesting things going for it than an aesthetic then, right? Like... actually being fun.

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Darson

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Edited By Darson

I wonder if this "New Business Structure" includes making money?

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Edited By Hawkerace

I like my Wii U, some people get so fucking wrapped up about what is better and all of the x y z reasons to follow. Just enjoy games, whatever platform they are on. Shit isn't a race or a competition. Hopefully Nintendo releases a few games that aren't platforms, say what you will about zombiu, but I kinda need more games like that. Nevertheless as my first nintendo console ever, I really enjoy what they have brought. Neato.

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Set

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Edited By Set

Please don't go mobile. Nintendo I will not forgive you if you start making games for smartphones.

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Set

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@goldanas said:

@fobwashed said:

I read news that the new Mario game was outsold by Knack.... crazy.

As someone who purchased both games, I can tell you that I played Knack more, and was more invested in it during my play-time. That says something about Mario.

Mario is definitely a better game, undoubtedly, but it's also so much more boring. There is just nothing interesting about Mario anymore, and the Duplo Blocks aesthetic is really not fooling me anymore.

sorry about your taste in games dude

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Gerhabio

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Edited By Gerhabio

@hammondoftexas said:

I know this is cliche, but why doesn't Nintendo either A) Put all of their previous gen. games on the eShop, or B) Seriously put Pokemon on iOS.

Pokemon is a system seller (3DS), why would they put that on iOS?

I completely agree about the prev. gen. eShop games.

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Kohe321

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Keep iterating on the handheld consoles and make games for them, and move the console gamemaking to other consoles. I'd love to see a full HD Zelda for the PS4 with awesome graphics made entirely by Nintendo. At least we can dream...

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kampfkatze0815

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People, calm down. Even if Nintendo looses 250 million $ every year, it will take them 40 years, I repeat FORTY YEARS, to use up their short term cash reserves. As of March 2013 they had 10 billion $ in cash and short term investments on their balance sheet, so while realistically a business like Nintendo needs quite a chunk of cash to work, they are hardly in the need to rush.

The reason why the are thinking of realigning their strategy is that in the long run, meaning let's say in 5 years, the situation might be far worse if they don't shift with the market. That doesn't change that even if they make all the wrong decisions, Nintendo will still be around in 10 years. They simply have THAT much cash. Sega was a completely different story.

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Edited By ike7779

Can't wait to see what Nintendo is capable of now that they are hungry again.

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Edited By huser

So how bad is Nintendo's position now compared to the where it was at after the N64? Or after the Gamecube? I see doom and gloom forecast, but surely after the huge successes of the Wii the company is in a stronger position now than it was in either of those cases?

They're the last relic of how videogames used to be, and they still make games that revel in that childlike wonder and fun. It'd be a real shame to lose that, which would be guaranteed if the company went third party.

I would say while the Wii was most definitely a money maker, its the handhelds (like always) that have been the real winners for Nintendo. At the very least, 3rd parties haven't gotten skittish on them so licensing is still a thing.

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Edited By Lava

With the new Super Smash Bros coming to 3DS and the need to buy a bunch of pro controllers or something for the Wii U to even make everyone happy while playing it, I don't seeing it having much of an impact on the sales of the Wii U. It'll be an interesting year for Nintendo that's for sure.

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Camurai

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Put more/better games on VC/eShop already

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MormonWarrior

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I've thoroughly enjoyed the Wii U I got for Christmas and have more than enough games to play on it right now. My favorite Nintendo console was probably the GameCube (or...the SNES maybe) and that was a time when Nintendo was hungry. They made killer games. A year or two into the Wii cycle stuff stopped being quite so interesting.

I wouldn't be too upset if a big upset caused them to change up management. As interesting as many of their approaches are, they're severely out of touch with the internet and modern game design in a ton of ways. Something needs to change.

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@sunjammer: True, they're kinda stuck now. At least Sony had devs who saw enough potential in the system to make it work, plus a stellar run of exclusive titles. Right now, the only thing Nintendo has is franchise loyalty, and even that is starting to falter. When you officially announce your weirdo Dynasty Warriors Zelda game BEFORE there's a new actual Zelda on your system (coz Wind Waker ain't new) something is very wrong.

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stonyman65

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I guess everyone who predicted Nintendo getting knocked out of the console sector were right.

I just can't see them doing anything more than just releasing Nintendo games for other platforms. They have lost so much over the last few years, and continue to lose now, that them making another console or even a handheld seems like a really, really bad idea.

It sucks that it has to happen this way....But I don't think Nintendo has another choice at this point if they still want to be a company. We all knew this was coming, we just didn't want to believe it. "Never bet against Nintendo" just doesn't hold up anymore.

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All they have to do is quit worrying about all the stupid gimmicks and just focus on the games. Every year people are wondering what games will actually come out on their Nintendo consoles and every year they are disappointed. Nintendo needs to worry about making some quality games first!

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If they put their back catalog on other systems (PC, Xbox One, PS4) and keep putting out great new games on those, I would buy the crap out of them! I haven't bought a Nintendo game since my GBA days, because I haven't had one of their systems.

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Pierre42

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@gnatsol:

Bothers me a fair bit too how much people want to see Nintendo fail.

I think gaming in general is plummeting lately, would be a shame if a bold company like Nintendo were to bow out like this.