Satoru Iwata
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Nintendo nine-month profits drop year-on-year, Wii U ships 1.95 million in Q3
Nintendo reported a net profit of 9.6 billion yen (around $93 million) in the last three months of 2013 on the back of shipping 1.95 million Wii Us across the quarter. Despite that holiday success, the company posted a year-on-drop for its first three fiscal quarters, the nine months ending in December 2013. Net profits fell by just under 30 percent to 10.2 billion yen ($99 million), with Nintendo noting the Wii U has continued to bring down its figures, chiefly because of price cuts in the US and Europe. Nintendo slashed its sales forecasts for the fiscal year earlier this month, and expects to post a net loss of 25 billion yen ($242 million) for the fiscal year ending in March 2014. There's been no official announcement yet, but Nintendo CEO Satoru Iwata and members of the board are reportedly taking a temporary pay cut in response to the company's recent downturn. According to French news agency AFP (via Polygon), Iwata told reporters in Tokyo he would take half his normal pay for five months, with board members receiving a 20 to 30 percent cut. If accurate, it wouldn't be the first time in his tenure that Iwata has taken a pay cut: His salary was also halved in 2011, the reason then being poor 3DS sales.
Report: Nintendo planning free smartphone 'mini-games' to promote software
A report from Japanese news organization Nikkei suggests that Nintendo will soon use smart phones as an interactive promotional tool for its games. The report claims that Nintendo will release game trailers and "free mini-games" to entice players on phones to seek out software on Nintendo hardware. Kotaku notes the specific wording of the Japanese article, clarifying that Nikkei does not use the Japanese word for demo, further suggesting an advergaming tilt to the move. Earlier this month, Nintendo president Satoru Iwata said the company would be studying "how smart devices could be used to grow the game-player business" after the company severely adjusted its forecasts for the end of its fiscal year. Nintendo almost halved its original net sales projections and reduced its Wii U shipment expectations to 2.8 million from 9 million. In October 2012, Iwata said smartphones should not be inherently tied to games, but could be used to help spread Nintendo's messaging and "offer consumers gaming experiences which smart devices cannot realize and to actively try to make smart devices our allies, not our enemies." Nikkei's report says Nintendo will use its smart phone strategy to provide potential players with information about the story and characters of its games, along with information about release dates and prices. Nintendo is expected to announce the strategy this week. Joystiq has contacted Nintendo for a comment on the report, but no response was offered at the time of publishing.
Iwata clarifies: Nintendo is not done with consoles
Last week, Nintendo president Satoru Iwata mentioned that the company was rethinking its business strategy following poor sales of the Wii U console. Speculation that Nintendo would cease building consoles immediately followed, but Iwata assures fans and investors that this is not the case. "The spread of smart devices does not spell the end of game consoles. It's not that simple," Iwata stated. "It doesn't mean that we should put Mario on smartphones." Instead, Iwata sees the new ubiquity of mobile devices as a platform that Nintendo could and should tap to promote its console releases. Here he cites GungHo Online Entertainment's Puzzle And Dragons as an example, pointing out that the 3DS incarnation of the game sold more than a million copies in its first month of existence, despite Puzzle And Dragons being available as a free-to-play offering on all manner of mobile devices. According to the Wall Street Journal, Iwata remains convinced that good games can sell consoles, regardless of how technologically impressive they might be - though modern customers need more convincing than earlier generations. To that end, Nintendo is reportedly pouring money into research and development, and "Mr. Iwata promises to surprise game players in the future."
Iwata: Nintendo 'thinking about a new business structure' following weak console sales
With Nintendo having to slash its forecasts following weak Wii U sales comes the contemplation of new business strategies. While not announcing any definitive changes in the company's direction, Nintendo President Satoru Iwata admitted at a press conference today in Osaka, Japan that the company is "thinking about a new business structure," Bloomberg reports. "Given the expansion of smart devices, we are naturally studying how smart devices can be used to grow the game-player business," Iwata said. "It's not as simple as enabling Mario to move on a smartphone." Nintendo took its 3DS projections for the fiscal year down from 18 million to 13.5 million. However, the bigger hit came with decreased projections for its home console, taking the Wii U down from 9 million to 2.8 million for the year. "We cannot continue a business without winning," Iwata added. "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 yen or 30,000 yen, and sell titles for a couple of thousand yen each."
Nintendo is spending more on R&D as Wii U's star continues to fade
Nestled inside Nintendo President Satoru Iwata's statement on those brutally slashed sales forecasts, he touched on what the company is doing to (hopefully) reverse the current downward trend. Research and development is apparently getting some heavy support, with the Nintendo No.1 saying that the company is strengthening both the existing "development structure" as well as "new research and development activities." Will that entail Nintendo's next console, heavy-duty improvements to the existing Wii U or just a new fitness dongle? We don't know and Nintendo isn't giving us much for our imagination to run on just yet, but it sounds like the company's planning for a brighter fiscal future. Now, let the flights of wild fancy begin.
Report: Nintendo aims for 5 million 3DS sales in Japan this year
Capcom held an event in Tokyo today for Monster Hunter 4 , during which Nintendo president Satoru Iwata revealed Nintendo intends to sell five million 3DS systems in Japan this calendar year. This figure is actually part of a bigger goal, Bloomberg reports: worldwide 3DS sales of 18 million. Nintendo's latest earnings report pegged 3DS sales at 1.4 million for the three months ended in June, with software sales at 11 million. The release of four new Street Pass games also bolstered Nintendo's bottom line by earning $4 million in profit this month. In North America, the 3DS has flourished at retail, holding onto the top hardware spot for the last three months in a row. The latest retail report points out a 14 percent increase in sales year-over-year.
Iwata: Wii U's price isn't the problem
While the Wii U hasn't sold particularly well, with Nintendo moving just 160,000 units across three months in Q1 2013, Nintendo President Satoru Iwata is holding strong that the system's price isn't the problem - the price discrepancy between the two Wii U models is. "If the price is actually an issue [with Wii U], then there is some contradiction between the current sales balance between the Basic and Premium versions of the Wii U," Iwata told CVG. "The basic version should have sold a lot, but the fact of the matter is that people are buying more of the premium version. So the issue is not there," he said. Iwata cited the disparity in sales between the Deluxe and Basic Wii U models in January when noting that the system was selling "steadily," and stated plans in June to regain the system's momentum through the end of the year before establishing "successful third-party Wii U software titles." Iwata has been there before, after all; He took a 50 percent pay cut in July 2011 due to poor 3DS sales around the time the system's price dropped, later selling the 3DS XL at a profit. Of course, whatever version of the Wii U you choose to pick up, there's still the matter of what the heck you're going to play on it. "I understand that the real issue is the lack of software, and the only solution is to provide the mass-market with a number of quality software titles," said Iwata. Great idea!
Iwata: Nintendo magic comes from integrating hardware and software
Nintendo president Satoru Iwata says the company's chief differentiator is its invention and introduction of hardware and software, and how having those different teams under the same umbrella. "What I believe is that Nintendo is a very unique company, because it does its business by designing and introducing people to hardware and software – by integrating them, we can be unique. And because we have hardware and software developers in the same building, they stimulate each other," Iwata tells CVG. This approach, Iwata says, has cemented fandom in Nintendo's lineup of franchises. And why not offer Nintendo games on competing platforms? With such a stable of system sellers at its disposal, Iwata thinks it'd be short-sighted for Nintendo to offer its games elsewhere. If he wasn't "concerned about the long-term future of Nintendo at all," Iwata says putting Nintendo games on other systems may lead to "some short-term profit." Ultimately, it's Iwata's responsibility for the long-term that prevents him from ever "providing our precious resources for other platforms at all." Iwata, who this year took on the role of Nintendo of America CEO in addition to his duties as company president, got his start at Nintendo as a programmer for HAL Laboratory, the outfit responsible for creating Kirby, the Mother series (Earthbound) and the Super Smash Bros. franchise. He has served as president of Nintendo since 2002.
Iwata: Profitability possible without layoffs
Nintendo global president Satoru Iwata believes that his company can get back into the black without firing any of its employees, through good ol' fashioned efficiency and cost-saving measures. "It is true that our business has its ups and downs every few years, and of course, our ideal situation is to make a profit even in the low periods, return these profits to investors and maintain a high share price," Iwata said during a recent shareholders meeting, in response to a question about "corporate restructuring" as a solution to Nintendo's problems. "If we reduce the number of employees for better short-term financial results," he continued, "employee morale will decrease, and I sincerely doubt employees who fear that they may be laid off will be able to develop software titles that could impress people around the world." Iwata also noted that global exchange rates have played a major part in Nintendo's financial situation, saying that "the influence of exchange rates is the main aspect of this matter," rather than Nintendo's headcount. "Employees make valuable contributions in their respective fields, so I believe that laying off a group of employees will not help to strengthen Nintendo's business in the long run," he said. "Our current policy is to achieve favorable results by continuously cutting unnecessary expenses and increasing business efficiency."
The Wii Vitality Sensor is dead, at least for now
If the Wii Vitality Sensor were to be spoken of in Monty Python parrot terms, it would be an ex-parrot – bereft of life, it rests in peace. Originally announced back in 2009, Nintendo's unreleased biometric accessory has been indefinitely shelved due to the fact that the thing doesn't work with 10 percent of the people who use it, according to internal Nintendo testing. "After a large-scale test of a prototype inside the company, we found out that for some people the sensor did not work as expected," Nintendo global president Satoru Iwata said during a meeting with investors, after being asked for a status update on the product. "We wondered if we should commercialize a product which works as expected for 90 people out of 100, but not so for the other 10 people," he continued. "Though I am sorry that we did not give any specific updates after this product's initial announcement, I would say that knowing that a product has a problem we should not launch it for the sole reason that we have already announced it." Iwata also added that, even when the sensor functioned as expected, "it was of narrower application than we [read: Nintendo] had originally thought." The Wii Vitality Sensor (or something like it) may eventually make it to market, providing that the technology advances to such a degree that "999 of 1,000 people to use it without any problems, not only 90 out of 100 people."
Iwata 'very willing to change' current Wii U situation, focus is momentum 'towards end of this year'
"Our focus is, first of all, to regain the momentum of the Wii U towards the end of this year, and then we'll try to establish successful third-party Wii U software titles," Nintendo president and CEO Satoru Iwata told IGN. "I believe in the importance of third-party support for Nintendo platforms. I'm very willing to change the current situation." Despite an exclusive agreement with Sega that locked in Sonic: Lost World on Nintendo platforms, third-party support on Wii U is practically non-existent now – a topic of conversation during our interview with Nintendo of America corporate communications head honcho, Charles Scibetta, last week at E3. That same week, EA told us the decision to forgo Wii U ports of its popular FIFA and Madden franchises this year was simply a "rational" business decision. Nintendo COO Reggie Fils-Aime told IGN that EA in fact does have Wii U projects in development, "just nothing coming out this fall" for the system. "Looking at this through the prism of a business decision, if I'm a third-party publisher, what I want is that I want a large, diverse installed base to invest in my development and be able to monetize against that large installed base. That's why, from a Nintendo first-party perspective, we have to drive the installed base," Fils-Aime said. "We need a diverse group of consumers. Not just core, not just casual, but a broad, diverse group of consumers within that installed base, so that whether you're Ubi with Assassin's Creed or with Just Dance, you're feeling confident that your game is going to find a home. You'll be able to monetize your development." Iwata elaborated that while Nintendo is good at some things, the company can't satisfy all on the platform. Some players want experiences that Nintendo simply can't offer – that's why third-party support is so crucial. "There are huge numbers of fans of Nintendo software, but at the same time, those types of players still sometimes want to play something else on our platform. Because of that, we always need third parties to support us, in order to make our platform complete."
Nintendo not doing E3 press conference, holding smaller closed events instead
In an investor presentation, Nintendo CEO Satoru Iwata announced that Nintendo will skip the usual large-scale E3 press conference this year in favor of "a few smaller events that are specifically focused on our software lineup for the U.S. market."One of these events will be for American distributors, with another closed event "for mainly the Western gaming media." Iwata noted that Nintendo is not planning to announce any new hardware at this E3, with showing off software the main focus.While Nintendo is dropping a lot of mainstream press attention with this move, it makes a lot of sense for a company with the recent financial history of Nintendo to skip out on some expensive pageantry. Especially when the company makes E3-level announcements monthly, for a tiny fraction of the cost.
Satoru Iwata to assume Nintendo of America CEO role
Nintendo president Saturo Iwata will assume the additional role of Nintendo of America Chief Executive Officer, overseeing NoA President and Chief Operating Officer Reggie Fils-Aime, who remains in place. The move is one of several board changes in the wake of planned retirements.The executive-level musical chairs will see Iwata replace current NoA chairman and CEO Tatsumi Kimishima, who will transfer to Nintendo's Kyoto headquarters as the General Manager of Corporate Analysis and Administration, and General Manager of the General Affairs Division.In a statement, Nintendo said the move will support "the company's unified global strategy" and "allow streamlined decision making and enhance Nintendo's organizational agility in the current competitive environment."Nintendo released its fiscal-year financial statement this morning, with the company's net profits almost half of its projections at just over ¥7 billion, or around $71 million.
Luigi's Mansion: Dark Moon skit sees Miyamoto clean up
You may have missed it amongst all the goings-on of the North American and European broadcasts, but last week's Nintendo Direct for Japan featured a cute little sketch which saw Shigeru Miyamoto and Satoru Iwata get into the spirit of Luigi's Mansion: Dark Moon.This week, Nintendo republished it for English-speaking viewers, extra useful since the video includes five minutes of Miyamoto talking about the upcoming 3DS game.
Iwata: Wii U NFC to be used for payments or in-game, prototypes due this year
The Wii U GamePad includes a near-field communication function, but you wouldn't know it if you didn't, say, read obsessively about game consoles on the Internet. At the moment, no Wii U game uses it for anything, not even Skylanders, which ships with its own NFC reader.Speaking to investors, CEO Satoru Iwata discussed potential plans for the tech, none of which have been finalized. Nintendo's ideas for NFC uses split in two directions: Skylanders-style toys and credit card reading."For example, we can create cards and figurines with NFC and design our video games to work in conjunction with them," Iwata said of the first possibility. "Also, an increasing number of arcade games are utilizing IC cards which can read and write data in order to record users' scores and it is possible for Wii U games to connect with them." Nintendo is working with "several" developers on ideas like this, "and, by the end of this year, we will probably be able to show you some output, tell you about some more concrete examples of the possibilities or even let you try out some tangible examples."The other potential use of NFC, as discussed by Nintendo before, is for payment cards. "Technically, it is possible to settle an account by waving an e-money card over the Wii U GamePad," Iwata said. "We are conducting research into this right now as one of this technology's future possibilities." While NFC payments are more prevalent in Japan than elsewhere, there are lots of credit cards in America that can be used by tapping on the card reader. Setting your card down on the GamePad would certainly be more convenient than entering a number.Whatever Nintendo does with the technology, Iwata is adamant that it had better do something. "Since we have made a certain investment in order to install NFC," he said, "we will make efforts to at least receive a return on our investment."
Iwata: Merging hardware teams could result in more hardware
Speaking to investors, Nintendo president Satoru Iwata elaborated on Nintendo's aims regarding the merger of its console and handheld development teams. Iwata takes the surprising stance that putting the two teams together in Kyoto will result in more potential platforms, not fewer. "What we are saying is that we would like to integrate software development methods, operating systems, and built-in software and software assets for each platform so that we can use them across different machines," Iwata said. "This means that if we manage to integrate our platforms successfully, we may in fact be able to make more platforms." Iwata explained that the ability to share development resources and assets between teams will allow them to work more efficiently, and that they would be "spread too thinly" if they tried to work on more than the current console and handheld platforms. As usual, it's impossible to guess what Nintendo is up to in specific terms. "We feel that we are nearing a saturation point in terms of simply improving performance or enhancing graphics," Iwata said. "What is far more important for the future of video games is whether we can make new propositions in other aspects and create games out of something that people never expected to see in the form of a game." The problem with things we never expect to see is that we don't know what to expect, and therefore what to tell you.
Nintendo to help Japanese companies bring their 3DS games West
In order to boost the number of new games coming to the 3DS, Nintendo plans to work with Japanese third parties to bring their games to the North American and European markets. "Among those third-party titles both developed and published in Japan, there have been some games which Nintendo published in Europe, including the Professor Layton series," president Satoru Iwata explained in a presentation today. "We will increase the number of such games for the U.S. market as well as in Europe. We are also willing to flexibly assist third-party developers in distributing their valuable games overseas." In other words, Nintendo will outright publish more games from other companies, and assist in the distribution of others.It's a simple plan, one that could result in the localization of games that third party publishers would find too expensive to localize and market on their own. Ideally, this would involve games like Bravely Default and Professor Layton vs. Ace Attorney; Nintendo's generally reliable curation means we're still safe from humiliating cheesecake ninja game Senran Kagura.
Nintendo to merge handheld and console divisions by next month
Nintendo plans to unite its console and handheld divisions by February 16, combining the two into a singular unit tasked with creating next-generation hardware. As reported by Nikkei, and then confirmed to Engadget by Nintendo, the combined unit will initially incorporate 150 handheld and 130 console engineers, and operate out of a new $340 million facility located just by the company's headquarters (pictured above) in Kyoto, with the facility due to be completed by the end of 2013.The move represents Nintendo's first major organizational restructuring in around a decade. In 2002, Satoru Iwata replaced Hiroshi Yamauchi as president of Nintendo, and initiated a move which saw the company's two Research & Development teams re-assigned into the Entertainment, Analysis, and Development division.Today's news follows speculation around Nintendo's restructuring plans which suggested Shigeru Miyamoto would retire from his position as Nintendo EAD boss, being replaced by EAD deputy manager Takashi Tezuka. In a 2011 interview, Miyamoto noted Nintendo ought to be "structured" to operate without him before he'd leave the company.
Nintendo Direct bringing Pokemon news early tomorrow morning
A Nintendo Direct will be simultaneously broadcast worldwide tomorrow morning at 6am EST/8pm Japan time. In the roughly ten-minute broadcast, Nintendo president Satoru Iwata will deliver "a short message with Pokemon news."With no other details to go on, we remind you to please reserve your excitement for after the announcement. Sometimes there are new main-series Pokemon games, yes, but there are a lot of things like Pokemon Dash out there too.
Iwata: Wii U 'selling steadily,' Deluxe outselling Basic
"At the end of the Christmas season, it wasn't as though stores in the U.S. had no Wii U left in stock, as it was when Wii was first sold in that popular boom," Nintendo president Satoru Iwata told Reuters in a recent interview. "But sales are not bad, and I feel it's selling steadily."The Wii U is not selling as quickly as the Wii did in its first few months. Iwata did not provide new sales numbers, though we know Nintendo claimed sales of over 400,000 in the US on launch week, and Reuters cited Enterbrain data reporting 638,339 Wii U consoles sold in Japan between its December 8 launch and December 30.Most of the Wii Us being sold are the black Deluxe model, which includes more storage space, more accessories, and (in North America) Nintendo Land. "It was the first time Nintendo released two models of the game console at the same time ... and I believe there was a challenge with balancing this," Iwata said. "Specifically, inventory levels for the premium, deluxe package was unbalanced as many people wanted that version and couldn't find it."
