Investors Mad at Nintendo for not Developing iOS Games

August 11, 2011 -

In one the oddest investor complaints ever, Nintendo's shareholders are reportedly mad at the maker of Mario, Zelda and the Wii, for not leveraging its core franchises on Apple's iOS platforms. Apparently investors haven't noticed for the life of the company's video game industry involvement that Nintendo does not swim in any other ponds but its own. According to a report from Bloomberg's Mike Firn (reporting from Tokyo), investors are now saying that it should develop titles for Apple's iPhone. That would be like Microsoft investors telling it that it should develop Halo games for the PlayStation 3 or Wii...

The complaints highlight the situation that Nintendo President Satoru Iwata faces as consumers shun Nintendo devices to play games on iPhones, iPads and Facebook. The flop of the 3DS debut prompted the company to cut prices 40 percent in Japan and 32 percent in the U.S., the first time the games developer has resorted to such a move within six months of a product’s debut.

Iwata has said that Nintendo will only make titles for its own products as long as he’s in charge, but fund manager Masamitsu Ohki said the company should "scrap that strategy to avoid further alienating investors who have driven the stock to six-year lows."

"Smartphones are the new battlefield for the gaming industry," said Ohki, a fund manager at Tokyo-based Stats Investment Management Co. "Nintendo should try to either buy its way into this platform or develop something totally new."

Ohki declined to identify his holdings to Bloomberg or to name any targets Nintendo should consider for an acquisition. Yasuhiro Minagawa, a spokesman at Nintendo, declined to comment beyond statements made previously by Iwata.

In the short term, Nintendo is betting on price cuts to the 3DS which now sells for 15,000 yen down from 25,000 yen starting today in Japan and a number of new game titles to revive earnings. The company plans to introduce flagship titles such as Super Mario 3D Land in November and Mario Kart 7 in December for the 3DS. In the U.S., the 3DS will cost $169.99, down from $249.99.

Source: Bloomberg


Comments

Re: Investors Mad at Nintendo for not Developing iOS Games

Did those investors fail to realise that they had invested in a company that produces hardware as well as software? Providing a competitive advantage for a competing product would be just... insane. I imagine that if these investors held shares six years ago they might have criticised Nintendo for producing the Wii when they ought to produce games for PS2.

More to the point, that raises another concern that these investors seem to think they know the games industry better than Nintendo, but are too ignorant to realise that they don't.

Re: Investors Mad at Nintendo for not Developing iOS Games

How's this: Nintendo starts making games for the iPad when Apple starts making games for the 3DS. Fair enough?

Re: Investors Mad at Nintendo for not Developing iOS Games

This is one of those incidences that I want to just yell out the investors for their stupidity. It just amazes me how naive they can be. They are willing to throw money at something and not even know how the market works? Just wow.

XBL/PSN Keegs79

Re: Investors Mad at Nintendo for not Developing iOS Games

I somehow suspect several of these investors have connections with apple. I think the problem is more along the lines of just how muchh they charge for a handheld system.

Re: Investors Mad at Nintendo for not Developing iOS Games

Unlikely.

I see the more plausible explination is investors usually have a very shallow and fad oriented understanding of the markets they invest in.  In many ways (esp after the 80s) investors are a company's worst enemies and listening to them is a good way to drive yourself into the ground.

Re: Investors Mad at Nintendo for not Developing iOS Games

If any understanding at all. That most investors don't do any research into their market is reason enough to not listen to them. They probably haven't noticed that Nintendo's dominated the handheld market for the past two and a half decades. They've done well enough for themselves on their own, they should just keep doing what they're doing.

Re: Investors Mad at Nintendo for not Developing iOS Games

Yeah, they are likely being very narrow minded. They see sales on iPhone apps skyrocketing and think Nintendo should jump in there too. What they don't realize is that the 3DS is not a lost cause and Nintendo needs more time to get its flagship titles out in order to attract more sales. If after all that, Nintendo STILL continues to lose money, then maybe they can look into alternatives. For now, it's way too soon to just give up and hand everything over to another company.

 
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Sora-ChanSo it's just a matter of having better emulation software. If it can be done with a 3DS game, with all the memory and what not it takes up, it can be done with a GBA title through emulation.07/29/2014 - 7:30pm
Sora-ChanOther VC titles for the NES and Gameboy had the same setup where you couldn't access the homescreen without quitting out of the game til a later update when those games were released for the public outside of the founder program.07/29/2014 - 7:28pm
Sora-Chanthe 3DS can, and does, run GBA games, as seen by the founder gifts, which included a number of GBA titles. As for running GBA games and still having access to the home screen, I beleive it's more of the game emulation software needs to be updated.07/29/2014 - 7:27pm
Matthew Wilsonthe 3ds already swaps os's with the original ds. plus I dont think people expect miverse interaction when playing a gba game.07/29/2014 - 6:06pm
MaskedPixelanteBut that's not the issue, the 3DS is perfectly capable of emulating GBA games. The problem is that it doesn't have enough available system resources to run it alongside the 3DS OS, and thus it doesn't have access to stuff like Miiverse and save states.07/29/2014 - 5:45pm
Matthew WilsonI am well aware that it requires more power, but if a GBA emulator could run well on a original psp, than it should work on a 3ds.07/29/2014 - 5:36pm
ZenThe reason the SNES could run Gameboy, or the Gamecube could run GBA was because their adapters included all of the necessary hardware to do it in the respective add-ons. The systems were just conduits for control inputs and video/sound/power.07/29/2014 - 4:51pm
ZenMatthew: Emulation takes more power than people realize to run a game properly. You can make something run on less, but Nintendo...as slow as they are at releasing them..makes them run as close to 100% as possible. Each game has its own emulator for it.07/29/2014 - 4:47pm
Matthew Wilsonkind of hard to believe since the 3ds is atleast as powerful as the gamecube hardware wise.07/29/2014 - 4:27pm
MaskedPixelanteYes, the 3DS has enough power to run 16-bit emulators, but not at the same time it's running the 3DS systems themselves. You could run the games, but you wouldn't get save states or Miiverse.07/29/2014 - 4:04pm
InfophileRunning GBA on 3DS shouldn't be hard. The DS had flashcarts sold for it that added just enough power to emulate GBA and SNES games, so the 3DS should have more than enough natively.07/29/2014 - 3:37pm
 

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