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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PHX Corphttp://www.polygon.com/2015/5/26/8659397/graphics-complaints-arise-following-new-witcher-3-patch-for-pc Graphics complaints arise following new Witcher 3 patch for PC05/26/2015 - 7:53am
E. Zachary KnightInfo, or they could have left it only for people in your friends list.05/26/2015 - 7:21am
Infophileas being "family friendly." A kid could easily flip an option and be hit with a torrent of abuse they weren't expecting.05/26/2015 - 5:30am
InfophileI think Nintendo was between a rock and a hard place with voice chat in Splatoon. Leave it in, and jerks will drive off younger players. Leave it out, and competitive players won't play. Even if it were in but disabled by default, they couldn't sell it...05/26/2015 - 5:29am
Matthew Wilsonthis is a nice video on P.T https://www.youtube.com/watch?v=K-85jO6nRNQ05/25/2015 - 11:57pm
Matthew Wilsonmaybe, but its still kinda sad even as a joke.05/25/2015 - 11:51pm
Goth_SkunkThe best commentary is delivered through humour.05/25/2015 - 11:36pm
Andrew EisenIt's not needed. It's a joke. Albeit one with quite a bit of commentary packed into it.05/25/2015 - 10:59pm
Matthew Wilsonmot game related, but still interesting. http://www.polygon.com/2015/5/25/8654983/jurassic-world-chris-pratt-apology the fact that this is even needed in modern culture is a embarrassment.05/25/2015 - 10:26pm
Matthew Wilsonyeah, but with no voice chat its doa.05/25/2015 - 9:48pm
TechnogeekYet, you're going to be hard-pressed to find anyone other than insecure 2EDGY4U teenagers seeing it as anything other than an extremely fun game.05/25/2015 - 8:36pm
TechnogeekSplatoon's probably the best example at this point. Gameplay-wise, it's a team-based third-person shooter with a significant online component. It's rated E10.05/25/2015 - 8:36pm
TechnogeekThe silliest thing about most of the Nintendo hatred is that they may be the last company that interprets "family-friendly" as meaning "fun for more than just the really young kids".05/25/2015 - 8:33pm
ZippyDSMleeWell it could be worse, like skyrim out of the box, a shame DAI dose not have that level of editing...05/25/2015 - 5:58pm
Zenpretty well without getting "nasty". Many people are disappointed in the decision and the about face on the status of the games development.05/25/2015 - 4:22pm
ZenEvery market has horrible people...but being like this towards all of them in a group is not a way to garner support and can make people more hostile towards you. Ironically his response was to someone that wanted to state a disagreement, but worded it05/25/2015 - 4:22pm
Goth_SkunkAs demonstrated by Ian's remarks, that 'market of possible fans' is apparently negligible.05/25/2015 - 4:18pm
Zeninformation while other versions had everything talked about openly.05/25/2015 - 4:15pm
ZenYeah, I've read through it and wanted to make sure I had it quoted correctly. I get there are issues, but this is horribly unprofessional and just burning a market of possible fans..many of which supported them and were waiting while getting little to no05/25/2015 - 4:15pm
Goth_SkunkOh wow. That's not even misquoted, he actually said that. Though for additional context in previous pages, he truly does not think highly of Nintendo console owners, and claims that in the industry, he's not alone.05/25/2015 - 4:12pm
 

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