Posted by: seanmalstrom | May 8, 2014

Email: Nintendo’s Actions to Recover Financials

Hello Malstrom,

I guess you’re aware of Nintendo’s 2013 financial balance and the U$400M+loss. Iwata said to investors:
Posting an operating loss for the fourth fiscal year running is something unacceptable. We see this fiscal year as a time to prioritize restoration of the balance of revenue and expenses.
 
I’m wondering if NOW he will stop listening Myiamoto and work to make games that acutally SELL. The news regarding Pokemon Ruby/Saphire remake, the new console for thrid-world countries, MK8TV software for smart devices and NFC action figures would be some signals?

 

From decades of observing the generations, it is critically important for Nintendo to realize they must support their ‘failing products’ and give those customers satisfaction. Non-customers, such as myself, are always observing. If Nintendo pulls the plug and leaves their consumers up a creek, that SCARES me from buying the next hardware system. However, if Nintendo keeps those consumers happy, the outsiders will seriously consider jumping onto the next hardware system when it launches.

Look at the Wii. The Gamecube was still largely supported. Twilight Princess had a Gamecube specific version for its swan song. The Wii took off on that. People felt that investing in the Wii was fine because Nintendo is a good company even if the Gamecube didn’t work out for them.

Now look how Nintendo handled the Wii support. They pulled all sorts of bullshit crap and then pulled the plug on the system. Skyward Sword, Metroid: Other M, Wii Music, and lack of titles made the Wii have a bad taste in everyone’s mouth. I didn’t trust Nintendo after that crap. Apparently, many other people didn’t either. Wii U just didn’t sell. The point is that the company’s reputation was hit by lack of support (and might I add their selfishness). The 3DS also didn’t help inspire interest in the Wii U. The DS did inspire interest into the Wii.

The PS3 was a botched mess. Yet, Sony supported it extremely well which led it off to the PS4 juggernaut. The PSP was not well supported so the Vita never came out the gates strong.

One of the reasons why the Gameboy line was so successful is because Nintendo’s support was so strong and consistent. When you bought a Nintendo handheld, you knew you were in good hands in terms of support.

You can even go back to the days of the Sega Master system. Sega made the little console and supported it well despite the NES domination. This allowed the Sega Genesis to enter as a valid competitor.

I’m not going to buy a 9th Gen Nintendo console if current 3DS and Wii U owners are unhappy. If they remain satisfied, then I’ll be game.

Nintendo keeps saying video games are a momentum based business, but they are really a support based business. Pulling the plug on a console and leaving all those customers high and dry is screaming to the world that ‘We Will Not Support This Console If Things Don’t Turn Out Our Way’. Would you want to buy that company’s next console? Of course you wouldn’t.


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