Nintendo Considering Mergers And Acquisitions Says President Satoru Iwata

By Ishaan . January 31, 2014 . 9:00am

In an interview with Japanese business publication Nikkei, Nintendo president Satoru Iwata shared his thoughts on the company’s recent financial losses and also revealed that he’s considering the idea of mergers and acquisitions.

 

Regarding his mindset on Nintendo’s current troubles, Iwata shared, “Mr. Yamauchi (former President Hiroshi Yamauchi) often said ‘Shitsui-taizen, Tokui-reizen,’ meaning that we should act regally when things are bad, and be calm when things are going well. Were he alive now, he would tell me to carry an air of confidence.”

 

He elaborated: “We built up cash reserves when earnings were strong. Because the entertainment industry ebbs and flows in wild swings, Mr. Yamauchi insisted it is vital to have deep pockets. Without savings, we could not have recovered from a single failure in game systems. Even now, we can afford many options because of our robust financial standing.”

 

“We’ll change the way we sell products, by managing customer information via the Internet,” Iwata said, regarding the company’s strategy going forward.

 

“We’ll offer discounts to steady, regular customers. We’ll cultivate emerging markets and launch new businesses in health and other areas. In an emerging country, you can expand the user base only after you offer a product line different from advanced economies in pricing.”

 

Iwata added: “We should abandon old assumptions about our businesses. We are considering M&As as an option. For this reason, we’ll step up share buybacks.”

 

Of course, whether Nintendo plans on acquiring other developers involved in the development of traditional games or other kinds of companies entirely, is unknown. The last major acquisition Nintendo made in terms of adding an external game developer to its family was Monolith Soft, which was owned by Namco Bandai.


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  • Earthjolly

    I hope they don’t end up buying Atlus or Platinum games. I want Vanquish 2 and Persona 6 on my future PS4.

    • Morningstar

      Sega beat them to Atlus

      • ronin4life

        Nintendo-Sega Sammy holdings and CO.
        BEHOLD TEH FOOTURE OF GAEMS!!
        O[]O//

        • idrawrobots

          I would LOVE that.

          • Laer_HeiSeiRyuu

            Sammy’s into gambling a wee to much

      • XypherCode

        What if Nintendo bought Sega?

        • Amine Hsu Nekuchan

          That would be amazing….

          • idrawrobots

            Throw in Level-5 for good measure?

          • XypherCode

            Just imagine Sega and Atlus’ portfolio of games under Nintendo. God that would be something.

          • Shippoyasha

            Amazing for Nintendo only fans but not good for Sony or multiplat/MS fans. I just love Atlus as a third party being free to do their own thing. Sega likewise needs to wisen up and release more games on more platforms. That being said, Atlus needs to be more open about localizing games to Europe too.

          • PreyMantis

            Imagine… Sonic Megami Tensei: Mario Survivor

          • Cazar

            It would also mean Altus USA wouldn’t be able localize any more 3rd party games that weren’t on Nintendo consoles… woo?

          • Amine Hsu Nekuchan

            I do like how AtlusUSA does business now, but I think such a team up could do wonders. It would definitely improve the Sega side of things.

        • James Enk

          i think Nintendo should have bought Atlus when they had the chance it would have given them a very strong foot in Japan, well it’s there lose

        • Morningstar

          Then Project DIVA (save the Nendoroid-styled spinoff) would cease to exist and everything else would be exclusive to Wii U

          Playstation would not be affected much by merely the Sega Merger they would be to buy out other companies like Square Enix, Ubisoft, EA, maybe Nippon Ichi, 2K Games, Capcom and/or Valve as well to really hurt the Playstation (and maybe Steam)

          • ronin4life

            DIVA would probably be safe, or merged into Mirai(Which I think is way better anyway)
            Sony can’t pay for themselves at the moment; they won’t be buying anyone.

          • Morningstar

            I wasn’t talking ’bout Sony buying the companies. I was talking about Nintendo buying the aforementioned companies.

    • Kayhil Dimas

      Why would they buy atlus if it’s a subsidiary of Sega Sammy though I can’t say the same for platinum

  • http://youtube.com/miyabigaming 禍津水樹

    and while you’re at it drop the assumption make the 3DS region free

    • ronin4life

      …I have no idea where to start with this, or if I should even bother… but…
      What did they start in the 90′s, exactly?

      • KnifeAndFork

        The wording of your question is confusing
        Anyways, all Nintendo home consoles have been region locked from the start, but all of their handhelds have been region free except for the 3DS

        • ronin4life

          He Changed his comment… originally, it said something about a hole NIntendo started digging itself into back in the 90′s…
          o_o

        • Taedirk

          DSi and Wii say hello.

          • Neophoton

            “All Nintendo home consoles have been region locked”

            He was talking about handhelds…

          • sd28

            dsi wasn’t region free

          • ronin4life

            DSi and 3DS can play region free DS games, but not Dsi bonus special games or 3ds games.
            There weren’t many DSi games like this though, so the DSi is pretty much Region free.

  • ronin4life

    “He elaborated: “We built up cash reserves when earnings were strong. Because the entertainment industry ebbs and flows in wild swings, Mr. Yamauchi insisted it is vital to have deep pockets. Without savings, we could not have recovered from a single failure in game systems. Even now, we can afford many options because of our robust financial standing.”’

    And, as I have been saying for MONTHS now, THIS is why they have been so slow to “Modernize” in certain ways and a myraid of other actions: They were saving their money. Which is something we should all try and do for our financial security. Why should a business be any different?

    • malek86

      On the other hand, their slowness to modernize is now making them lose money. I don’t see the reason then.

      • ronin4life

        True, but I don’t exacty see MS or Sony swimming in money for doing so either, and it cost them A LOT less than it would have cost Nintendo since they have the size and infrastructural knowledge in house. And then, they CHARGE for it.

        So I still think it wasn’t a bad idea at all to safegaurd Cash and build up the online stuff slowly.

        • malek86

          Saving money is always a good idea, for sure, but refusal to take on some things was definitely due to their hard-headedness.

          For example, an infrastructure with account system like the Xbox, in 2003, was certainly going to be expensive. But to be in 2011 and still not have one in the 3DS? That can’t be just due to saving money anymore.

          • ronin4life

            I don’t know what else it could be exactly. Of course DRM-like intentional policy is a possibility, but I feel like that wouldn’t have made an account set-up an unwanted feature on its own unless they just didn’t care enough… and in that case, the only reason to ignore it entirely is an unwillingness to spend money.

            I highly doubt the no-account thing has hurt them much until this past year with WiiU, and WiiU did have the beginnings of an account set-up. And I think that could be an indicater they were moving in that general direction all along, just from a different angle and at their own speed.

          • Guest

            And still the Microsoft Gaming division is trying to compensate the overall losses, thus creating the need for new methods for capitalization such as advertisement on your own console and paid online.

          • ronin4life

            Basically, as the industry stands in mediphor form, If Nintendo is Stagnant and starting to decline and Sony is already in Decline, MS is trying to dig its xbox division out of the hole it dug in the beggining for its foundation.

            It is funny though how people see all this as exactly Backwards… >.>;;;

          • Satori Satya

            MS invested BILLIONS on the first Xbox. Each year they were losing around 2 billion dollars back then. If Nintendo had done the same as MS, we would all be playing Nintendo games on emulators and nothing but.

          • LaserVision

            The thing is, we don’t know how much an account system would cost. Who knows? All I can say is I agree, at this point iTunes and to a lesser extent XBL and PSN have set the standard already. It’s really unacceptable for Nintendo imo.

        • idrawrobots

          I wouldn’t be surprised to see Sony acquisitioned or merged someday.

          • http://lookingglass.kokidokom.net/ gundamjehutykai

            Sony selling one of their only 2 profitable parts of their business? Not happening. Hell, the mere idea of selling their film division was passively considered and then promptly thrown out the window.

            Capcom on the other hand…

          • idrawrobots

            I wasn’t specifically speaking of their profitable parts, but Sony can’t seem to handle money well.

          • Lucky Dan

            With Microsoft Xbox Gaming Division, to me it seems that way, cause the consoles are extremely similar and it seems to me the way they done it both companies done it on purpose.

            I would not be at all surprised if this happens.

        • http://lookingglass.kokidokom.net/ gundamjehutykai

          However, Sony and Microsoft are much larger companies than Nintendo. Sony computer entertainment, in particular, is doing reasonably well even with the well documented vita troubles. The playstation and film brand has been their main money maker for years. It’s the TV and electronics divisions which have been haemorrhaging money. but since they’re part of one company despite being essentially separate within the company itself, it shows the whole as being in trouble.

          Nintendo is in a general decline so it’s not possible to do a direct comparison.

          • Guest

            Nintendo is bigger than Sony though, its market capitalization is 17B in contrast to Sony’s 16,7B.

            And I think Sony Pictures is not doing that great, I think I read it was one of the reason they failed to reach their forecast last year… Maybe that’s why they want to cash-cow the ‘Spider-Man’ franchise with spinoffs.

          • http://lookingglass.kokidokom.net/ gundamjehutykai

            market capitalisation isn’t the same as physical size. a small company making a lot of money will have a higher capitalisation than a big company making meagre profits. If you spun off just SCE as a separate company, I bet their market value would be much higher than Sony in general.

            I remember Sony pictures had some pretty bad flops later in the year (after earth comes to mind) but overall, they’re pretty solid still and making a profit. Just not as much as they thought. As opposed to their TV division which has been losing money for years…

          • Satori Satya

            “If you spun off just SCE as a separate company, I bet their market value would be much higher than Sony in general”.

            Not sure about that. Sony barely made the PS3 profitable a couple of years ago and then the Vita happened. PS4 started strong but with that kind of baggage, investors would probably grow a bit antsy.

            Sony is actually making more money from some of their other divisions. If their insurance division was made into a company, they would probably do better.

          • Guest

            And probably SCE is not doing that good yet because they’re still paying PS4 R&D, taking up for Vita losses and every PS4 selling at loss. There must be a reason why they had to adapt MS paid online scheme.

          • Satori Satya

            Well lets put it this way, Sony is HIDING from investors the real shipments they make of Vita. That’s a bad sign right there.

            In regards to PS4 selling for a loss, that’s to be expected. Every console sells at a loss initially. And since the PS4 was done (relatively) on the cheap using off-the-shelf parts, they should be back in the black in no time.

          • Laer_HeiSeiRyuu

            The vita’s sold worse than the dreamcast and Sega saturn. That’s not a good spot to be in

          • ronin4life

            …wut.
            ._.
            PS3 was a black-hole for the company and could still be. Vita is not just bad, but worse-than-WiiU bad. And I seem to recall hearing that Sony Pictures is also part of their financial problems.

            They also sold both their Japan and US HQ and are now leasing them out, have dropped to a lower value than Nintendo despite being much larger and have had their Credit rating lowered to JUNK by at least one credit agency. All this after years of lay-offs and Game studio Closures.

            Even with Nintendo having troubles, they are much better off than Sony; and I wouldn’t call a couple of years being in decline unless it maintains itself as a continuing pattern. Not that Online infrastructure has anything to do with that in any large part.

          • idrawrobots

            Wasn’t it a few years ago that the only reason Sony made a profit is because they sold a couple of big buildings?

          • Laer_HeiSeiRyuu

            Sony’s not doing well by any means anywhere lol

      • Daniel Jeanbaptiste

        that because they saved too much for too long.
        Over 10B in saving.

        • Laer_HeiSeiRyuu

          11.6 billion

  • malek86

    Acquisitions, sure, but mergers? Wow, that’s a bold claim.

    Introducing, Nintendo Capcom. Conquering Japan one hunting game at a time.

    • ronin4life

      If that gets Monster Hunter into Smash Bros, I’m all for it.
      OAO/

      • Nanaki

        Imagine being able to upload your own character into the new Smash Bros! I can only dream..

      • KoRLumen

        Using the patcher code, there’s a Rathalos SnS Hunter costume that goes over Link. It’s gorgeous.

    • konsama

      On-cart DLC games confirmed.

    • http://www.siliconera.com/ Ishaan

      “M&A” is a term as a whole that Iwata uses a lot. I would imagine he’d prefer an acquisition and not a merger.

    • Serge
      • Laer_HeiSeiRyuu

        Pokemon Rebursto Huntaa!

        Fuse with your pokemon to hunt mutant daemons!

      • keithmaxx

        Yes please. Then we can finally have a Mon Hun anime that runs forever!

  • http://LevelUpGeneration.blogspot.com/ KALiverin

    I’m looking forward to all of the ridiculous scenarios people are going to come up with based on this news. I’ve already seen some crazy claims when Atlus needed a new partner, but this is going to open the floodgates of silliness.

    • http://www.siliconera.com/ Ishaan

      Why would you say Atlus was a crazy claim, considering Nintendo bought Monolith, and they were an even more niche company at the time than Atlus are now.

      You have to keep a couple of things in mind–Nintendo doesn’t acquire companies based on their brand name, they acquire them specifically for their talent. They’re interested in the people, not the company.

      The other thing is that they look for developers that have the ability to be flexible. Developers that can adapt to the Nintendo style of development. Strong pre-production process, strong design outlines, realistic budgets and schedules. Atlus hits every one of those points. Monolith Soft didn’t, but after they were acquired, they learnt to operate that way, and that led to Xenoblade being as good as it is.

      • malek86

        Actually I would say that, based on past behavior, Nintendo doesn’t seem to want to buy big companies. Probably because they would be more expensive.

        In which case, I’d guess Index was probably not on their radar.

        • http://www.siliconera.com/ Ishaan

          In general, I would agree. But that may not apply any more, depending on what purpose they have in mind for the acquisition. Is it to add to their family of developers, in order to be more self-sufficient and less reliant on external companies?

          Is it to strengthen their network infrastructure? Is it to build up an expertise in the area of health and QOL? Depending on what it is, this could be interesting.

          • malek86

            I don’t think we’ll see Nintendo buy devs. They’ll probably buy tech companies that may let them work on different stuff.

          • ronin4life

            I can see them buying out small groups like the guys who did Luigi’s Mansion 2 for them still.

            Though one of the cool things about Nintendo is how they do business with so many devs without needing to pidgeon hold them into the company forever.

      • http://LevelUpGeneration.blogspot.com/ KALiverin

        Them purchasing Atlus or Platinum Games isn’t a crazy claim, but some people seemed to act like they were the only ones who were going to do so or that it was inevitable. I always had some doubt in my mind because I didn’t want to get my hopes up and tried to imagine a realistic end to it all, so I wasn’t left feeling disappointed when they didn’t end up under Nintendo management.

        I just notice that whenever a company decides to make an exsclusive game for any of their systems, some people start saying that Nintendo should buy that studio. I’m talking about the way people seem to throw around random studios for Nintendo to buy or merge with whenever they make games for their platforms. It’s not necessarily based on the companies themselves, but the way people talk about it.

        A Nintendo owned Atlus wasn’t something difficult to imagine, but it was pretty funny seeing the types of scenarios people made up if such an acquisition took place.

        • http://www.siliconera.com/ Ishaan

          Oh, I see what you mean. Yeah, the reactions are always kind of crazy when you see the possibilities of acquisitions brought up. On the one hand, you have people with outrageous suggestions and on the other hand, you have devout fans of other console companies screaming for Nintendo to die so they don’t acquire developers they like.

          It’s very rare that someone actually understands why a particular developer might be appealing to Nintendo. In the case of Atlus, I didn’t think it was a crazy scenario because Atlus are excellent at managing their budgets and reusing technology. They have great producers, and that’s precisely what Nintendo likes to see–management people with experience in design.

          I don’t know what they’re looking at in terms of M&A now, though. We’d first need to try and understand what purpose they would want to acquire another company for.

        • XypherCode

          You’re spot on.

      • Satori Satya

        “Nintendo doesn’t acquire companies based on their brand name, they acquire them specifically for their talent”

        ^^^ That and the fact that Nintendo understands that they cannot make certain type of games. Its like when Disney got a hold of companies such as Marvel or Lucasfilm to reach demographics that would usually skip watching their wholesome G-rated movies.

        Nintendo knows their limitations in that sense.

        They got Squaresoft to help them make an RPG game. They asked Rare LTD to make a FPS ~ GoldenEye (something Miyamoto always wanted on the N64).

        So if they were to acquire or merge with another company, they would probably do it with a company that does something that they themselves cannot do.

        I think most people think Nintendo needs more “mature” games. So they could go after a company known for such games.

  • Slickyslacker

    If only Cing hadn’t gone bankrupt…

    …and although tri-Ace may be a private company, Nintendo would be the last of the colossal game corporations to buy them out.

    Neverland (the Rune Factory developers) also come to mind, but everyone knows what happened there. The development team is still together, though, so maybe something could happen?

    • GH56734

      Well, Nintendo did hire staff from Camelot (Shining), Square Enix (Brownie Brown (RS2), Alpha Dream (SMRPG)), Data East (Glory of Heracles), Hudson Soft (Mario Party) either directly or in their first party devs.
      It’s not really a precedent.
      However they really need more good American devs.

      • Laer_HeiSeiRyuu

        No they dont. American devs aint doing shit. Go to Europe.

        • GH56734

          Umm… Next Level games, Retro studios, ex-Rare employees (well, they are British and Americans, and I’m not talking about post-2000 Rare)IIII…

          • Laer_HeiSeiRyuu

            Retro was a mess till nintendo came along and fixed them, Rare is british and they were a mess with the gamecube, Nintendo wanted to get them but they went to MIcrosoft, Next Level games is Canadian.

            Who should work on the next Eternal Darkness. They have the chops for it.

            Along with Starfox,Fzero,MachRider,StarTropics ect ect

          • GH56734

            Startropics specifically was made by an all-Japanese team, that was living in the US. Sadly that doesn’t even count…

  • XypherCode

    I find it really stupid that a lot of people keeps saying that Nintendo should merge with Apple.
    …ugh… :|

    • malek86

      That will definitely not happen. Besides, a merger between two companies of such different size, would be more like an acquisition on Apple’s part.

      • XypherCode

        I agree. When the news broke out all I see everywhere is that they should have a merger. Pretty silly if you ask me.

    • GH56734

      I saw one of the many “NINTENDOOMED: Nintendo should ..” topic on neogaf that was almost Patcher-level. It really deserves a mention

      “Nintendo should merge with Sega: This way they can finally go third party and ditch all of their unprofitable console and handheld hardware and develop for smartphones YAY

      Their home-console software will appear on all platforms, and a multiplatform Bayonetta 2 would be the first game to be released
      Sega is excellent in providing games to every console and every region (sic) and Nintendo would benefit a lot!
      Of course the top management of Nintendo should be ALL FIRED and Miyamoto who’s a brake to the creativity.”

      EDIT: As I write this reply, there’s already someone who reposted this as “the most obvious choice”.

      • ronin4life

        Such people do exist...

        THE PROPHECY OF DOOM IS UPON US!!! NO LOGICAL GAMER IS SAFE

        /O[]OAAAAAAAAAAAAAAHHHHHHHH!!!!!!
        Seriously though, that is just sad…
        -_-;;

      • sd28

        to be fair it is neogaf which is honestly the worse place for nintendo related discussion at the moment .

        • ronin4life

          Ugh, tell me about it..
          There was a post I looked through yesterday about how Nintendo uses “Blood Minerals” based on an NGO letter asking for a mass boycott. DESPITE SEVERAL GAFFERS destroying the argument that this is true in its entirety or even a little bit, there were still several ignoring these points or believing them to be non-valid to support their own already disproven points.
          That gave me a headache…-_-

          • Shippoyasha

            One has to be a tad cynical of GAF though. Despite the mods being ban happy at times, the place is overrun with extreme fanboyism. Blood mineral stuff is a bit hazy as an issue though it’s also a nasty byproduct of capitalism. Most our clothes are the same way.

      • MagicMushroom

        Not suprising. NeoGAF is full of Sony fans. They want everybody but Sony to go bankrupt, so Sony can stay on the “battlefield” “victorious”. (No, I’m serious, someone really posted that and wasn’t joking).

    • Shippoyasha

      It’d be funny if Microsoft or Sony jumped aboard. As insane an idea as that is, it’d create a total behemoth of a merger either way. It is not likely but I fear for the health of fanboys if that ever comes to pass.

    • Ric Vazquez

      Apple would ruin them

    • LaserVision

      I agree. It’s really stupid. How would such a deal help Apple?

    • Tom

      What!? I never heard that before. And yeah, it’s plain stupid.

  • KnifeAndFork
  • Tooru

    If they’re going to acquire developers, I’d like to see them acquire some Western ones. Back in the N64 days, they used Rareware’s amazing output to help them through long software droughts. Right now the Wii U is going through something similar (if not much worse than the N64), but they don’t have a Rareware equivalent to help them through it. I don’t know who I’d want them to pick, but someone creative who could work with Nintendo’s design philosophy would be great. Had this been years ago, I’d have suggested Free Radical in a heartbeat, but alas…

    Honestly, it probably will be something related to their new QOL platform. Some sort of health company, maybe? It probably won’t be a developer at all. I think the last major company Nintendo bought was MobiClip, now hilariously known as NERD (Nintendo European Research and Development).

    • NimbusStev

      That would be a fantastic idea. Nintendo has always struggled with finding 3rd party developers, so buying a couple of Western studios would do wonders to expand their library.

  • Minos

    Sony would be funny (the Internet rage meltdown would be glorious) and they have the Money to get the 51% of the stock easy. But I don’t think they have the money to pay all that debt Sony has.

    Sooo… some Wetern Studios… I would go for Epic, Batesda and Rockstar.

    Nintendo could buy them easly if they are willing to.

    • Grape Monet

      Sure, if Tencent (owns almost half of Epic), Zenimax (owns Bethesda) and Take-Two (owns Rockstar) are willing to sell. Except they probably aren’t.

  • Psycho Punch

    We’ll offer discounts to steady, regular customers.

    That sounds to me like, “we’ll be less welcoming to newcomers.” I know giving incentives to your loyal customers is great gesture, but you should find a way to do that without hurting your chances at other potential patrons.

    • idrawrobots

      New customers can become regular customers, Regular customers cannot become new customers.

      • Psycho Punch

        Huh?

        • Guest

          Sounds weird, but it has logic :P
          It’s an incentive to keep being a Nintendo customer and for newcomers to start consuming Nintendo products and expect a rewards along the line.

          • Psycho Punch

            In an age where digital storefronts like GOG, Steam, etc. won’t discriminate in giving deep sales, that doesn’t sound a good idea to me. On second thought though, those are sales, and not permanent loyalty programs. So give loyal customers discounts, and entice new ones with sales.

          • ronin4life

            This so much.
            And it isn’t like they haven’t done sales already, and they are 100% allowing of 3rd parties setting their own prices/having their own sales too. So I think that while sales may not be as big or often as Steam or some of the deals you get for being a PS Plus member, it will still be a very unique and competitive set-up if supported right.

          • Psycho Punch

            My main complaint, I guess, is that at this point, it’s mostly the most loyal Nintendo fans that are buying Nintendo stuff. These are people who will buy Nintendo games whether you give them discounts, or not (of course the former is always better). Other people outside looking in can’t seem to find that many reasons to jump into the party.

          • Grape Monet

            Even loyal Nintendo fans can’t keep shelling out $40 or $60 for every game. They themselves acknowledged that most of their customers – and at this point, most Wii U owners are Nintendo fans – only buy two or three games a year.

          • idrawrobots

            Not everyone is a freak like me that buys around 5 games a month on average.

          • Tylor Boreas Makimoto

            I was, then I realized I still hadn’t finished half of my games. So, I’ve cut it down to one every few.

          • ronin4life

            I understand the logic and agree with it, but I also think it could work as a way to make people outside looking in want to join in as well.
            The incentive may be most effective on and maybe even mostly intended for already established customers, but the attractivness of the idea could also be enough to lure in newcomers or those on the fence as well, even if in a limited way.

          • Psycho Punch

            The thing is, rewards programs like this require you to spend lots of money before they pay off. For Nintendo fans who buy Nintendo games regardless, it’s almost effortless. I think “potential fans,” however, won’t suddenly decide to jump in just because they’ll be rewarded some time in the future (i.e. after spending enough, “proving their loyalty”). That’s why, like I said, sales are much more enticing for outsiders, well actually for all gamers alike.

          • idrawrobots

            I would wait to see what kind of loyalty program it is before poo-pooing it. it maybe easier to get into and be more like a snowball, where it starts slow and builds up.

          • ronin4life

            I guess it could all depend on how the program or system would work. If few titles were needed, Like 5% off your 2nd game of the year and so on(which is what WiiU deluxe digital promotion already does) Then it could appear to be worthwhile instantly, and then grow better over time: providing further incentive for some.

            But yeah, even then it wouldn’t instantly work to bring in but so many newcomers at best.

          • Laer_HeiSeiRyuu

            Nintendo already has it sort of in place with the Digital deluxe promo, Heck if you buy the Wind Waker bundle you get 5$ off immediately since WWHD is a download

          • Laer_HeiSeiRyuu

            Basically its so that people are invested into nintendo’s ecosystem, so they stay. Even when the hardware changes

    • ronin4life

      I would also say that it wouldn’t at all be like saying “we’ll be less welcoming to newcomers.”. It just isn’t really saying they will be MORE welcoming to new customers than they already are, and more welcoming to regular customers.

  • Grape Monet

    If they start acquiring companies, I think they’d be looking for other companies besides ones that specialize in video games. Someone to help with the QOL platform, probably.

  • UUDDLRLR BASTART

    I’d be a less miserable man if Nintendo could acquire Konami, fire the entire management department and save franchises like Castlevania and Silent Hill from their overseas outsourcing limbo.

    • Reiswindy

      Don’t forget about saving Hudson’s franchises!

      • Kitestwinblades

        What I wouldn’t give for another Bloody Roar game…

    • Shippoyasha

      SUIKODEN 6 PLEAAAAAAASSEEEE.

      Contra, Bemani and others too of course.

      Maybe even a Tokimeki Memorial revival directed by Hideo Kojima. Snatcher revivial would be great too.

      • Warboss Aohd

        now your talking

  • http://youtube.com/miyabigaming 禍津水樹

    Is Reggie taking a pay cut too

    • Guest

      “My wallet is ready”

    • http://www.siliconera.com/ Ishaan

      No, because Reggie isn’t a member of the board and isn’t responsible for the well-being of the entire company.

      • idrawrobots

        Reggie isn’t responsible for the well-being of anything.

        • ronin4life

          I theorize that Reggie is a Giant Meat Puppet Mecha Controlled by Dozens of Purple Pikmin.
          So he isn’t technically even a person…

          • http://twitter.com/puchixseda puchinri

            I feel like that might even be his own headcanon on his existence.

          • Guest

            Maybe there is a Dollhouse with replacements for Reggie o.o
            http://i.imgur.com/FWGKRNf.jpg

          • http://twitter.com/puchixseda puchinri

            That made me giggle~. I’m pretty sure there is though. It’s hidden in the Treehouse somewhere.

  • Wesley Kenneth Houpt Mattingly

    Called it. Hopefully Sony or Microsoft will buy them, having Nintendo games on other platforms would rock. But what do I do with my recently acquired Wii U and 3DS?

    • hng qtr

      Be more subtle, that was too obvious…

      • Wesley Kenneth Houpt Mattingly

        Huh?

    • ronin4life

      I don’t think this story means what you think it means…
      ._.;

      • Wesley Kenneth Houpt Mattingly

        It means it’s a possibility, but not the preferred method. Nintendo would rather acquire other companies, but mergers are not out the question. Article is pretty clear. I don’t see the reason for downvoting outside of blatant fanboyism. Though Japan is known for melodramatic responses to a crisis, bu5 what I said is not out of the realm of possibility, and should be considered by Nintendo if they’re so upset the Wii U has tanked. At least the 3DS broke PS2′s lifetime sales making it the most sold system of all time.

        EDIT:Ahh the epic butthurt with the Nintendo community. Downvoting facts they can’t face. It disgusts me to no end :)

        • Guest

          If anything It means a merger to Nintendo, not the other way around.

          But more specifically Iwata used the term “M&A” but more the context tell us that it’s more in the meaning of acquisitions.
          (About M&A: http://en.wikipedia.org/wiki/Mergers_and_acquisitions )

          • Wesley Kenneth Houpt Mattingly

            Perhaps you should read the link you posted.

          • Guest

            Yes, I did. To explain you better is a term that comes together like R+D and it’s thrown around so but doesn’t mean necessarily both; plus as stated in the article its meaning has been blurred. In this particularly interview, by the context, we know Iwata refers to acquisitions.

            Edit: What I didn’t do was put the link correctly, there was an extra parenthesis at the end. Fixed :P

        • ronin4life

          I didn’t downvote you personally, but I think they mean “Mergers” where they end up in the controlling position. They aren’t saying they are willing to be acquired at all, but that larger scale mergers and Acquisitions(of other companies by them) are now on the table.
          Usually, they work with companies but don’t actually own them.

          • Wesley Kenneth Houpt Mattingly

            I could care less who owns who, but Nintendo and Sony could rule the gaming market, destroying the Microsoft gaming market forcing them to either merge or back out of the game race. MS has no business in console gaming, they own PC market, they’re greedy assholes to try and have their hands in multiple.

    • Guest

      “But what do I do with my recently acquired Wii U and 3DS?”
      Eeeh, play games?

      • Wesley Kenneth Houpt Mattingly

        Bravely Default is 2 weeks from now, nothing to play on Wii U, finished MH3U in August.

        • Laer_HeiSeiRyuu

          Buy TW101 and Pikmin 3. And Unepic.

    • NimbusStev

      That would be awful for the game industry. Not only would that put the market back down to a 2 horse race, whoever acquired Nintendo would completely dominate the console market. Trust me, you don’t want that. Competition is good.

      If any other major game company were going to buy Nintendo, it would be much better for it to be someone not currently in the console market (EA, Activision, Valve, Ubisoft, etc.)

    • Link

      Sony can’t even afford Nintendo lmfao. If anything it would be the other way around. Microsoft is the only one who’d be able to afford them but considering they’re still looking to recuperate the massive losses their own Xbox division is giving them I think acquiring Nintendo is the last thing on their mind.

  • Guest

    They could start developing an even closer relationship to Western developers such as Renegade Kid, WayFoward, Shin’en, etc.

    Their relationship with Next-Level games has paid off with great games!
    (Mario Strikers Wii U would be great, and in time for the World Cup!)

    • http://twitter.com/puchixseda puchinri

      I really want their relationships with WayForward and Shin’en especially to develop~. ;u;

  • Guest

    I haven’t noticed the line “We’ll cultivate emerging markets, (…) you can expand the user base only after you offer a product line different from advanced economies in pricing.”

    Good thinking, Sony and MS have tried to do this but the HW and SW is still too expensive to be competitive and to remove video-game devices from the luxury category. Let’s see if Nintendo can establish a direct & sustainable supply chain for Latin America territories.

  • Liamv2

    While your doing that remove the 3DS region lock……. Please? I want to play rune factory 4.

  • デ オオカミ

    I’ll give you one Nintendo should, and that’s that Nintendo should never have sold off Rareware to Microsoft. :p

    • ronin4life

      They had no choice: MS achieved Majority, so they would have been effectively worthless to Nintendo at that point. So they sold off the rest.
      IIRC.

  • MrJechgo

    Hmmm… they want to BUY studios or want to get BOUGHT by someone? Hope it’s the former…

    • Tyler Beale

      …and hope those studios aren’t ones with big franchises on other consoles….and isn’t Sega…

  • http://s1.zetaboards.com/Espada_of_Alexandria/index/ konpon568

    Get Konami, Nintendo! They aren’t doing anything outside of Metal Gear and Football (Soccer to some)!

    • Warboss Aohd

      and then maybe we could have Suikoden 6!

    • neocatzon

      Though Konami living with their arcade and it’s healthy.

  • Tyler Beale

    Iwata, just….admit the problem already. I’m sure some of those investors know about it.

    Also, kill the Wii.

    • Laer_HeiSeiRyuu

      They killed the Wii in 2010. WiiU didnt do what it was supposed to do. Now we’re here planning for the future while iwata laughs with his 11.6 billion dollars in the bank.

  • Ixbran

    Buy Platinum games Nintendo! If you can get PG under your wing, it will ensure that you will get some of The Best action games for your console!

  • lordsofskulls

    Mario on PS4 and lets put that nail in Xboners already. And bring back the Golden Age of Snes. O.O

  • LaserVision

    Nintendo is losing tons of money.

    All this talk of acquiring niche developers and region-locking is so ridiculously out perspective, it’s not even like rearranging the deck chairs of the Titanic. It’s more like finding a glass bottle on the Titanic after it hit the iceberg and searching for a recycling bin to place it in.

  • fool

    Might as well buy Sega and Atlus then.

    • hng qtr

      I can’t even imagine how Persona and Sony fanboys would react to that.

    • XiaomuArisu

      Sure…
      Its not like its difficult buying that lol
      Just give them a case with money and voila!

  • equalequation

    >cultivating emerging markets
    >region locking everything
    >hardware lock

    Yeah……….that stuff generally doesn’t work very well with emerging markets, sir.

    I know that DRM schemes in Japan are crazy in general, heck, until the advent of Kindle, it was common for ebooks to be locked to one device and only be readable one year after purchase. Old companies are really slow on the uptake regarding the digitalization of IPs, and I honestly understand why Nintendo got a rude awakening about it this gen. They probably didn’t even recognize it as a serious issue before, because nobody else did, and the PSN in Japan didn’t take off as much as the west until recently.

    But if they’re seriously going after emerging markets, they need to take some risks on that front and open themselves up to new venues of business.

  • revenent hell

    If they want to acquire developers go for it but please make sure they develop games other than Mario or party or kid games. Not that those games are bad but Nintendo’s home console wont and will not do well as long as they stay in their hole as far as their variety of games goes.
    New IP’s are always a risk but look at the draw Operation Rainfall games had for the Wii and while they may not hove sold an ubber ton they sold well enough even if the draw was a Niche group.
    Nintendo’s handhelds have always done well as well as the variety of games for it but their home consoles have lacked for me and most that I know beyond a Fire Emblem game. A system, no matter how cool or techy wont sell if there aren’t games people want to play on it.
    People can say how great or fresh or whatever Mario and Zelda games are but not everyone loves or even likes those two franchises and if Nintendo wants gamers to game on their home console they need to develop a better range of games that calls out to people outside of those two franchises.

  • icecoffemix

    People keep talking about it but what’s the point of acquiring bankrupt/niche/small game company at this point? I mean I know that it’s good for Nintendo for long term but that’s not what they really need right now.

    Also, they’re probably talking about QOL related thing.

    • Laer_HeiSeiRyuu

      Last time NIntendo did that we got Monolith Soft, the time before that we got Retro studios

      • icecoffemix

        During that time Gamecube is far and away more successful than Wii U ever and GBA to DS literally dominate handheld market, they also didn’t continuously bleed major money for three year straight.

        • Laer_HeiSeiRyuu

          Nintendo’s made a profit every year for the last 40 years except for in 2012.

          Operating losses =//= net loss.

          Nintendo also has 11.6 billion dollars on hand and no debts. They’re quite fine as company. People just thinking they’ll become irrelevant like always. Lol.

          WiiU? WiiU’s got a few issues, but despite them, its still managed to sell more than the PS3 did in Japan on its first year, and this year as well, its got 2 million sellers already in Japan( something the PS3 did once in 8 years with FF13)

          WiiU’s not exactly in selling for a profit range either.

          WiiU’s problem is image, software and communication, but Nintendo? Their busy expanding and investing money into things like they have been for 3 years. Thats why they’re having operation losses to begin with. They sort of snuffed the Wii out themselves(put out less software, took out features in the console,did all sorts of stuff, probably so their next console didnt have to deal with competition from themselves, but thats not particularly helpful when the next console isnt executed into the market all that well)

          In the year where NIntendo had a net loss(2012) its due to the fact that software didnt sell enough in the right territories to cover the costs of running the company.( which is what an operation profit or loss is, making or losing money running the company)

          Gamecube had more first party software than the WiiU anyway. Smash came out near launch ‘member?
          Gamecube had a drought problem in its later life, an image problem and a PS2 problem. Gamecube also had two other problems, Wind Waker and Super Mario Sunshine.

          Sony on the contrary’s barely been making money and selling buildings along with a wide assortment of debts racked up. They also have the worst selling piece of hardware since the sega saturn in the form of the Vita. Which has done nothing for their bottom line. They themselves said they’d have scrapped it by now if not to save face for the thirsty gamers, snapping content up.

          Microsoft’s been hemorrhaging money ever since they got into gaming and they’ve not made profits off their living room take over initiative.

          • icecoffemix

            Everything you said is probably reassuring(?) if the president of Nintendo itself did not say everything he said this week.

            I’m not interested in Company war, keep it to yourself and eh, keep believing that everything’s fine on their side. I don’t care haha.

            By the way, no one said that they’re going to be irrelevant, that’s your imaginary kneejerk reaction to everyone who said anything remotely not good to Nintendo. But if they keep going with the trajectory and keep their head in the cloud, it won’t going to end well. At least they seem to acknowledge this better than some of their fans, on the surface at least.

          • Laer_HeiSeiRyuu

            Im telling you the reality of the situation, your choice if you choose to ignore it.
            As Iwata himself has said, they’ve built up quite a cash reserve so they can afford to plan accordingly.

            Nintendo’s not where they are today for being frivolous, they’re no where near in trouble as a company as people are lead to believe.They’ve managed to avoid the decline that the rest of the Japanese economy has suffered over the last two decades for a reason.

            Poor WiiU sales is the fault of Nintendo, like they said themselves, because they didnt do what they were supposed to. Simple as that.

            Gaming isnt an easy industry, just look at mobile gaming. Sheer and utter chaos, compared to the console industry, which even in all its insanity, with costs being exponentially increased by the HD generation, its still more stable than that mess, thanks to Nintendo. They’re the reason PlayStation is here and by extension, Xbox.

          • icecoffemix

            Read my edit. And stop with the knee jerk reaction and assumption.

            And for the love of , stop steering everything into console war. This is not about us vs them.

          • Laer_HeiSeiRyuu

            What assumption? Nintendo’s not hemmorhaging money. They just built a building for Intelligent Systems, lol.

            They’re expanding their business so they have multiple revenue streams to fall back on and investing money to combat areas their weak in. Iwata’s words, not mine.

            Shit even with the WiiU being sold for a loss they still managed to ek out a profit for the last quarter, they’re expecting to take a loss next quarter because its the slow period early in the year and their buying back a lot of shares because Yamauchi-san died and his shares are up for grabs.

            Meanwhile the system’s not even a year and half old and they have 5 million sellers already.

            5.86 million shipped as of last year,
            NSMBU having sold 3.89 million units already( god damn that attache rate)
            Wind Waker HD, Super Mario 3D World are both at 2 million and Wii party U / NSLU are at 1.24 and 1.5 respectively

            WiiU’s overall attache rate is 5 games per unit as well.

            Indie support looking strong and NIntendo’s going to release some fantastic first party titles, its a matter of if the big AAA devs can make a lot of money off the WIiU(regarding their support)

          • icecoffemix

            Hmm mm mmkay

          • Laer_HeiSeiRyuu

            Thinking about where things will be in 10 years is how Nintendo’s managed to have a track record like this

            https://pbs.twimg.com/media/BdMjK0PIYAAQWfn.jpg

            I trust that they’ll keep making me money.

          • Laer_HeiSeiRyuu

            http://lmgtfy.com/?q=Is+Nintendo+Irrelevant%3F

            I pay attention buddy. You should too.

            People get payed writing about Nintendo, whether its through their clicks or a subsidized check from the likes of Viacom.

            Nintendo’s not keeping their heads in the clouds, they’re releasing another platform pillar and modifying their WiiU strategy and planning for the next 10 years while they expand. If you cant see that then Im sorry.

            Ignoring all the “DITCH THE GAMEPAD, GO THIRD PARTY, GO THIRD PARTY STEALTHILY BY RELEASING YOUR BACK CATALOG ON MOBILE AND WATCH WHEN PEOPLE DONT BUY IT”
            Chatter that people keep up with is how Nintendo rolls. they keep on keeping on while others kill themselves doing their jobs, bankrupting themselves in the process like Factor 5 did.

          • icecoffemix

            Who the fuck said that, holy shit you lots are really funny.

          • icecoffemix

            Third party certainly can’t see that with all the cancellation and first party sales certainly didn’t help Iwata and co’s pay.

            Yeah, I hope they see your post and keep doing what they’re doing instead of going into panic mode like they’re doing now. Would be really interesting to see really (not like it’s not right now).

            By the way bud, you really need some reading comprehension skill :
            “But if they keep going with the trajectory and keep their head in the cloud, it won’t going to end well. At least they seem to acknowledge this better than some of their fans, on the surface at least.

          • Laer_HeiSeiRyuu

            Or you know, Im actually an investor with a stake in their vision eh?

            Lol.I understand where things are going and what people’s place are.

            You’re not seeing things clearly.

            Nintendo’s been in far more situations fraught with trepidation than periods such as this one.

            Im not very concerned about gaming with them going forward, they’ll do well for themselves, Im just watching in anticipation of how they’ll execute this initiative of theirs and how it will strengthen their overall business and ecosystem

            People have been second guessing NIntendo ever since they reinvented the gaming industry and its been like watching people spiral into self perpetuation of bad habits. That’s why I put money in them back in 2003. That investment payed off massively.

            There is one clock that’s never right, and that’s the Nintendoomed clock.

            You want me to start worrying about Nintendo? Call me when they start wasting time porting their old games to mobile. (signifies change in hardware strategy which means video games are put in the back burner in terms of long term profitability, aka Nintendo focusing more on other avenues within the sphere of entertainment, which imo overall means gaming as a business is no longer functioning as it used to)

            Gaming’s about unpredictability, stability wont be found easily. When you start upsetting the balance of that, Gamestop stock drops in the toiler and models change irrevocably.

          • icecoffemix

            Haha okay whatever you said and your belive. I wonder who’s not seeing thing clearly, no I won’t bother replying again so don’t. Let’s just see how this will pan out.

          • Laer_HeiSeiRyuu

            My money’s on the line buddy, Im quite confident XD, I got a studio to run you know.

          • icecoffemix

            Are you an indie dev? Why limit yourself to one platform instead of also going PSN + Steam? I heard at least Sony (Shahid, Sony’s indie front) is very receptive of indie.

            id@box also seems good if they do something about that release parity clause.

          • Laer_HeiSeiRyuu

            Companies are companies.

            Limbo is not where I wish to live :>

          • icecoffemix

            What limbo? Using tools like unity isn’t it easier than ever now to make cross platform game? if that would maximize your profit and garner and please more fans I don’t see what’s wrong about it.

            But eh, if that’s how you decided roll then carry on.

          • Laer_HeiSeiRyuu

            Lol you’re funny.

  • https://twitter.com/Ni_Go_Zero_Ichi Project 2501

    Which third-party companies does Nintendo currently have stock in? Figuring that out ought to provode some strong leads on which companies/studios they might look to purchase in the future.

  • E.T.993

    Nintendo aquires Capcom…I wish.

  • Laer_HeiSeiRyuu

    Guys, if Nintendo’s going to buy anybody in gaming , it’d be Dwango http://en.wikipedia.org/wiki/Dwango_%28company%29

    They get a telecommunications company, Nico Nico Douga AND Spike Chunsoft

  • Lucas

    Here you are the largest franchise collection of your first console Nintendo.We want a sequels/new installments since NES/Famicom System to GBA http://en.wikipedia.org/wiki/NES_games

    • Laer_HeiSeiRyuu

      Nintendo’s got 55 intellectual properties yo.

  • 3PointDecoupage

    Buy Rare dammit!

  • Raine

    Nintendo should just Merge with Every Game Industry and Beat E.A’s glorious ASS. THey’ve been getting Electronic Assholes on us for too long.

  • https://twitter.com/LordOfPiracy Monkey D. Luffy

    Sony buy nintendo and become a powerhouse like no other lol

  • http://www.siliconera.com/ Ishaan

    Kamiya never said that. That was a mistranslation.

    (Sorry, deleting your comment so it doesn’t confuse people.)

  • Satori Satya

    According to whom? IGN’s article didn’t update their story about it being mistranslated.

  • http://www.siliconera.com/ Ishaan

    Kamiya himself clarified over Twitter later, I believe. Platinum aren’t looking to be acquired. Or, at least, Kamiya isn’t.

  • XypherCode

    I believe he never said he/PG wanted to become a 2nd party dev for Nintendo. I think he said it in the context that he wouldn’t mind it. But he never said he wants to.

  • Satori Satya

    Got a link?

  • http://www.siliconera.com/ Ishaan

    I’m afraid I don’t. This was a while ago, and either Kamiya or JP Kellams from Platinum clarified the matter with a tweet. I remember reading it, but I don’t believe it was widely reported.

  • Guest

    Not exactly what I was looking for, I vaguely remember Kamiya saying he’d hate to lose independence, but still here’s a chat after the interview stating the mistranslation:
    http://i.imgur.com/lBrdKet.png

    Edit: I think I found it but then I was misremembering it, but anyway here’s something Kamiya said:
    http://twitter.com/PG_kamiya/status/375080344510164993

  • Satori Satya

    I see. Because I’m looking at several gaming sites right now with articles that state what I said over there and not one of them corrected the story. All of them say the same thing.

    I even googled “Kamiya denies becoming second party” and nothing came up aside for more articles about becoming a second party.

  • XypherCode

    That’s the thing. He did not outright say he wanted to be 2nd party. You’re talking about this right? http://uk.ign.com/articles/2013/08/29/platinum-games-expresses-desire-for-wonderful-101-sequel

    “I would love [to become a second-party developer]. It would be great to work more closely with Nintendo.” -is not equal to actually wanting to or will become 2nd party. In the end I think it’s up to the readers on how to interpret that.

    If you want you could go through his or JP’s tweets. JP is usually the one who tries to explain PG’s or specifically Kamiya’s comments.

  • XypherCode

    Even if Kamiya really wanted to go 2nd party, it’s not his decision but Minami’s or even the entirety of PG. That was just wishful thinking in Kamiya’s part. So we can’t really expect and outright confirm they’ll eventually go 2nd party.

  • Satori Satya

    I got nothing about that searching on google. And I would need to be crazy to look through all the posts Kamiya makes on Twitter. He’s the Japanese version of Kevin Smith and posts too much.

    BTW, why did you delete my post over there? We have yet to have any real confirmation that they got it wrong. I think we need to find those tweets. For future reference.

  • XypherCode

    I don’t think it was ever reported. I saw those tweets by chance just by checking his twitter feed from time to time.

  • Satori Satya

    Like I said below, I am not crazy enough to go through Kamiya’s tweets. He posts too much. I would spend the whole day.

    Maybe I’ll go through JP’s tweets.

  • http://www.siliconera.com/ Ishaan

    I just don’t want that to be something people fixate on. I’m fairly certain I remember PG saying it was a mistranslation on IGN’s part, and I’d like to keep the comments moderated so misinformation doesn’t start to spread. That happens all too easily. I’ll try to see if I can search for the tweet later, but it isn’t easy to track those down, especially since it’s been many months now.

  • Satori Satya

    What exactly was mistranslated though? Was it what IGN asked him or Kamiya’s response to the question?

    Because IGN puts it like this:

    IGN: “When asked if he’d like to see the company officially join forces with Nintendo, he replied”

    Kamiya: “I would love that. It would be great to work more closely with Nintendo.”

    So are you saying that IGN didn’t actually asked Kamiya that his company should “officially” become a part of Ninty?

  • http://www.siliconera.com/ Ishaan

    No, I think something was lost in translation. IGN probably did ask the question that way, but Kamiya probably didn’t take it to mean that they were referring to some sort of exclusive relationship or acquisition.

    I think he just meant “work more closely” in the sense that they continue to make games for Nintendo or perhaps even work on Nintendo franchises.

  • Satori Satya

    Well if Kamiya is on board, then what I said on my original reply was on target. Because it should be an easier acquisition for Nintendo if one of the big wigs is on the same page.

  • Satori Satya

    Er… you forgot to add the link? I don’t see anything.

  • Guest

    Um, no, I see them :P
    Maybe reload the page?
    But here there are:
    1) http://twitter.com/PG_kamiya/status/375080344510164993
    2) http://imgur.com/lBrdKet.png

  • Satori Satya

    Now I see them (without having to reload the page too! ;) ).

    So these interviews go through 4 translations? People at IGN should at least learn Japanese. They could hire someone for that stuff easily. Unless they’re being cheapskates.

    But if that was the case with the IGN interview, then I can see how things got mistranslated.

  • XypherCode

    Yeah I remember these tweets as well as JP’s. Buried by hundreds of his other tweets by now. xD

  • Guest

    Kinda irresponsible from those sites that made the rumor widespread never clarify on the matter :P

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