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Satoru Iwata says Nintendo is considering a new business model

Posted on January 20, 2014 AT 02:30pm

The Wii U has struggled to find an audience since its November 2012 release, and plenty of pundits have said that it’s time for Nintendo to reassess its business modelwhether that means scrapping the console entirely, going third-party, or embracing smartphone technology.

Bloomberg reports that at a press briefing on Friday in Osaka, Nintendo president and CEO Satoru Iwata announced that the company is contemplating changes going forward. This statement came in the wake of the company forecasting a $240 annual loss this fiscal year after previously projecting a $526 million profit.

“We are thinking about a new business structure,” Iwata 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.”

With excellent games like Pikmin 3, Super Mario 3D World, and The Legend of Zelda: A Link Between Worlds releasing over the past year, Nintendo’s software development clearly remains strong. But the company’s standing in the home-console market is also as tenuous as ever, and Iwata and his management team must find a way to reconcile these two facts as the new-generation console battle begins in earnest in 2014.

Source: Bloomberg

Andrew Fitch, Managing Editor
Andrew Fitch, a proud Japanese RPG and serial-comma enthusiast, has been attending E3 for more than a decade now. His least-proud moment? That time in 2004 when, suffering from utter exhaustion, he decided to take a break on the creepy, dilapidated—and possibly cursed—La-Z-Boy at Konami’s Silent Hill booth. Follow Andrew’s adventures in avoiding cursed furniture at his Twitter feed: @twittch. Meet the rest of the crew.

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