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Nintendo is Looking Into New Business Model

Nintendo is Looking Into New Business Model

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Nintendo President Satoru Iwata said at a press conference that the company is thinking about a new company structure, commenting after Nintendo lowered its sales forecasts for its Wii U and 3DS systems. It expects to see a 25 billion yen net loss.

“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.”

Iwata adds: “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 yen or 30,000 yen, and sell titles for a couple of thousand yen each.”

Despite Nintendo expecting a third consecutive annual loss, Iwata doesn’t plan to resign from the company in the meantime.

“There will be no major management shake-up in the short term,” Iwata said.

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