
Nintendo has finally published its official translations of the recent Investor Q & A that Satoru Iwata hosted, and while it's light on reveals it does have a variety of answers that provide insight into the company's approach. The overall tone is one of certainty, with Iwata-san unruffled and comfortable that the company is making the right moves for its long term future.
He acknowledges major challenges that it's facing, too, and in an answer related to "the digitalization trend" addresses the issues with the increasing focus on download content; particularly its disruption of how we enjoy our entertainment. Examples cited include film - where many subscribe to streaming services rather than buy DVDs - and music, where the greatest profits now come from concerts and events rather than album sales.
Iwata-san defends the perception that Nintendo's been slow to act in this digital era, stating that the company wants to ensure it triumphs in the emerging market as opposed to making critical mistakes.
Observing these transitions, we can say that the digitalization trend presents not only a promising chance but also a huge crisis for us, so it can be said that we are faced with both an opportunity and a dilemma at the same time. Without thoroughly considering our business approach, the value of our content will instantly be damaged. I have strongly realized the importance of this point from around 2010. At GDC (Game Developers Conference) in 2011, I said that we should think about maintaining the value of game content. At that time, I could not make myself understood well enough as I am afraid my choice of words may not have been appropriate, but now I believe the number of people who understand the point I was trying to make at GDC is increasing. Therefore, this is a big challenge for us to maintain the value of our content, while the demand for entertainment is increasing. If consumers commonly expected content to be free or very cheap and as a result, if a price and service competition occurred on the similar-looking products, we would not have a bright outlook. Therefore, the most important points will be how we produce original content, how we create a way for value of our offerings to be well accepted and how we invent payment methods for new consumers.
Therefore, the demand for entertainment is not small. Rather, in our view, people are richer than in the past as they search for the ways to spend their leisure time more fruitfully. In a broader sense, they are having fun in their spare time in various ways in order to improve their QOL, I think. The ways to have fun have expanded. At the same time, since distribution costs are becoming very close to zero due to digitalization, the number of consumers who do not focus on the value of the content is increasing, based on their idea that content can also be free. How we deal with this situation where there is the pressure to decrease the value of any digital content will be the key point for us. If we find the right answer, Nintendo will prosper as a company that creates content. If we make a big mistake, on the other hand, our business structure will collapse. We know there is criticism that our decision-making or transformation is slow in this field or our activities are not sophisticated, but we would like to take forward steps by considering everything thoroughly and with confidence that our future approach will work. Thus, we have spent time on this, and I believe my current mission is to provide the answers to this question this year, next year and the year after.
What do you think of these comments from Satoru Iwata? Do you want Nintendo to take its time, or is talk of "considering everything thoroughly" a cover for indecision? Let us know in the comments.
[source nintendo.co.jp]
Comments 50
Slow and steady is the way to go, DON'T SCREW UP NINTENDO, WE'RE COUNTING ON YOU!
I seriously don't understand why it's taking them this long.
I'm never buying digital again.
@bezerker99 What happened my friend?
I enjoy the convenience of digital but I prefer physical. But he is correct on the devaluation of digital content. Steam sales comes to mind here.
I kind of disagree with @KickButt_Gaming, and for one exact reason: I happen to own an Xbox 360 as well, and if there's one thing Nintendo needs to step up with, it's prices and sales. Not the graphics, mind you: I don't give an intercourse about either the Xbox One or the Playstation 4 having life-like graphics, because that's not what gaming is - and should be - about. However, the massive sale I've witnessed (and took advantage of) last weekend got me thinking: Nintendo's most recent discount was Super Mario 3D World, sold for forty euros instead of the usual sixty; last weekend's Xbox 360 sale allowed me to snatch Saints' Row The Third for less than five euros, which is eight times cheaper than the discounted price for 3D World and a mind-boggling TWELVE times considering 3D World's usual price.
Another comparison that comes to mind is the Club Nintendo rewards. While I have to admit that interesting offers ARE popping up as of late (such as the Super Smash Bros./Pokémon OmegaRuby-AlphaSapphire allowing users to snatch a free game), the most generous [generous towards customers, that is; I'm well aware of all the charity Nintendo's done this far, let alone the free DSis handed out during the latest Japanese earthquake] reward used to be an old title, usually sold for five bucks or more, given as a freebie. And when you see, again, the Xbox sales (seriously, those are a serious contender to the "Most ridiculously cheap game sales" award alongside the well-known Steam sales), and compare Halo 3 - not counting as a game, but rather as the Microsoft flagship franchise - to the first Super Mario Bros. game being sold at the same price, you can't help but admit that Nintendo needs to be a bit more courageous.
I used the word "admit" in the last sentence because I'm a proud Nintendo fan nonetheless: check out my user page, I still identify myself as a hardcore Nintendo fan because I know that Ninty still wins when it comes to the sheer amount of value seen in their IPs. However, the whole approach to prices (and the slow turn to digital that comes along) is something I can't defend, at least not fully - because saying Nintendo is right in everything they do would be just fanboyish and unobjective all the same. When a friend of mine - basically my Bizarro version when it comes to gaming, as he owns an Xbox One and I'm giving him my emptied Wii after transferring the older data towards my WiiU - says "Welcome to the new millennium, Nintendo" whenever it comes to my favorite company's approach to online, I can't help but nod.
Yet again, wise words from the leader of Nintendo. They may screw up stuff, but rushing ahead and trying to be first is a very shallow aim for any kind of business.
@Neko_Rukiafan I'll tweet you the deets, bro
@bezerker99 Being your backlog friend, I know what happened. That's rough dude, though i would have done the PC transfer, looked like hte safest way to go and I had no issues.
@bezerker99
If you can let me know as well, feel free to do so. I have a lot of digital games on my 3DS, and I'm worried for whenever I'll have to transfer 'em to the New model.
Maybe he needs a new translator?
It seems to me he fails to differentiate between all the different aspects of "digital" and lumps it all together to mean free "app" games.
Things Nintendo can do much better digitally.
1. VC - so many older games waiting to be sold. Where are the Gamecube games? How many N64 games hsd Wii U had?
2. Day 1 digital - getting much better at this thankfully.
3. Sales on digital games. Plenty of sales every week on eShop but a Nintendo game is rare.
4. STOP MEASURING 3DS eSHOP GAMES IN BLOCKS.
5. Going to smaller mincro SD cards in new 3DS that are hard to access is a step backwards, should have gone to larger 8GB SD cards instead.
6. Wii U storage should be 64GB by now. Id bet 64GB now costs the same as 32GB 2 1/2 years ago when Wii U launched. And I dont care what anybody says, external HDD have some drawbacks - USB ports, wall sockets or Y cables.
7. Subscription service like PS+ or Xbox. Im not a big fan of PS Now streaming but Nintendo has so many old NES and SNES games, they could rent us 3 a month for $5.
So yeah, way behind and slow to catch up, but it isnt about free apps, its about so much more.
@rjejr So many VCs games waiting to be sold that Nintendo does not own the rights to and in many cases the rights have switched hands multiple times or is now jointly held by multiple entities. Nintendo only holds about 5-10% of the back catalog and even their part has licensing issues.
They do need to be better about adjusting their prices on titles, but they also need to avoid being like Ubisoft and Lego games in that it makes little to no sense to purchase new because within 6 months it will be $20.
I wrote about my experience here in the forums. https://www.nintendolife.com/forums/3ds/system_transfer_woes#reply-17
@XCWarrior I haven't owned a personal computer since February of 2012. I got tired of dishing out $400-$500 for a new PC every 2 years just to have it fail. The only computer I have at my disposal is the one I have at work....and none of those have SD card readers.
I have friends with computers but I bought my New 3DS XL during a big snowstorm that came thru here last weekend and I was stranded at home w/o a PC nearby to use. I figured I could just use my wifi internet access and do the wireless system transfer.
Nintendo could not have made this process anymore troublesome.
4. STOP MEASURING 3DS eSHOP GAMES IN BLOCKS.
I think many people are used to it now.
Just a step close to a more unified account system, even if it's the steps of a three-toed sloth.
Better slow and safe than fast and risky. I like that type of long-term thinking.
@AlexSora89 its not a difficult process IMO. I've transfered between several consoles and all my data and digital games are intact.
I am glad Nintendo is being slow here. I don't want the fiasco that is the current gaming industry on Xbox and PS4 where games are lacking in so much content and then they charge you an arm and for dlc. I never have a problem with content and value when it comes to Nintendo titles. To.me , the dlc just enhances my experience in their games, not makes up for them. I'm looking at you Destiny...
So like there's a Japanese saying that goes sumthin like "The nail that sticks out gets hammered down" D: so N playin it safe is kinda like old skool traditional vibe, I hate it & try to live pretty opposite to that tbh lol
and this is why some people complain that Nintendo is slow...
they should have kept the digital deluxe program...
He's so right about people's perception of value in games and he was wise to approach it with caution.
You can't go backwards on pricing and there is a growing community of even more casual gamers who realize you just don't buy games on day one when you can get them for so much lower prices just a few months down the line. It's an even bigger problem now that the number of games available has skyrocketed. Every serious gamer seems to talk about a backlog of games.
That trend is one reason publishers put so much weight behind yearly games whose value only lasts while friends are playing it online with you. Much more pressure to buy while it's full price. Then, they hit you with season passes and ways for late-comers to catch up for a fee.
I'm okay with Nintendo not being in that mode, but they do need to continue looking for good pay models because the world around them is doing plenty to devalue games.
Trying to not make mistakes is respectable, but really does show how painfully behind they are. By the time they catch up to where everyone else was nearly a decade ago, they'll just be another decade late again.
Their game design is fine. They need to seriously catch up on the digital front though and they need to up their hardware design skills again. They can continue having painfully weak hardware like they've been doing for the past two generations, but at least get better at other design decisions. I used to admire Nintendo's ability to make well-built and well-designed consoles (both home and handheld), however they now make too many decisions that makes me doubt their skills nowadays.
"Iwata-san defends the perception that Nintendo's been slow to act in this digital era, stating that the company wants to ensure it triumphs in the emerging market as opposed to making critical mistakes."
Moving so slowly into this area is the definition of a critical mistake, pertaining to it. They have basically ensured that they will almost never triumph in it, especially not against their competitors, who are kicking donkey left and right in digital and online.
@Quorthon
Nintendo rushing quickly into the current model where things are devalued isn't a smart idea. With companies Apple with iOS or Valve with Steam and the model of race to the bottom pricing, the toothpaste is out of the tube and they can't put it back in. If it turns out at somepoint "Oh we'll need to find a way to make out audience percieve greater value of these games to ensure we're successful" they'll have a very difficult time convincing a customer after they've spent years telling their audience the software is worth next to nothing.
How does it help Nintendo in the long run if they start deciding "3D Mario games are now worth less than £10/$15 after a year"? If it turns out cutting the price doesn't actually sell enough to make as much money as they did before how would they convince the audience that they're worth full price again after telling them they're not?
Nintendo's games sales trends their games still sell alot over a long time at high price. Both Mario Kart Wii(2008) and Mario kart 7[3ds](2011) were selling millions years after release in 2013 at full price. They'll need to consider carefully how they approach it or they WILL make a big mistake.
He's absolutely right on the devaluation of the media. So many games now launch at £50 but within a month or two drop to half that or even less. Nintendo games don't generally do that. That may work both ways for them, personally I rarely question paying full price for a Nintendo title whilst I might for those other games I know will be cheaper if I wait. But then I'm a Nintendo fan and know what to expect when I pay for their games, those who are less so may be put off by these perpetually higher prices if they don't.
But even as a fan I've succumbed to this devaluation on occasion. For example the Wii games they sold on WiiU, I bought the Metroid Prime Trilogy for the crazy £8.99 deal, but when Kirby came out it was £17.99 and my first reaction was "that's too expensive", but it's not. I know it's not. I happily paid double that for Triple Deluxe at launch without question and this is a title I missed on Wii so to me it's effectively a new Kirby game. It's simply that Metroid was a flipping amazing bargain!
I do it on mobile all the time too. There's been games on the App Store I've passed because they were £2 instead of 79p, as if they somehow weren't worth that even though I wanted to play them, only to then pay £4-5 for them weeks/months later on the 3DS or Vita. Which is stupid (though for the most part I've been happy to give the devs the extra money). But the mobile markets just put me in that mindset somehow, they make me consider these things less valuable. It's great to get things cheap of course, but it's also great to feel you're paying for something quality, that you're getting some of value.
He's correct on the devaluation of content. While free or cheap "app" games is obviously a big part of it, the problem also exists with other parts of the industry. Steam sales being a big one. People would rather wait for a sale on Steam.
It's a known fact that Nintendo-published games are the only ones in the industry that still retain their value years later, and therefore don't drop in price for a long time.
Anyways, he's wise to be slower and cautious when it comes to digital stuff. Nintendo's approach to DLC is proof of that. However, Nintendo is too slow at it. That's where the problem is. There needs to be a balance.
Thankfully, Nintendo is catching up. They mainly need to just implement cross-buy, untie the NNIDs from the hardware, unify everything under the NNID, merge the two eShops, allow cross-purchasing (ie purchasing a Wii U game on the 3DS eShop and have it start downloading on my Wii U via SpotPass and vice-versa), make it easier to communicate with friends, and a few other things.
@bezerker99
Well I'm going all digital! You could have saved yourself the trouble if you borrowed a computer.
@AlexSora89
Nah man. I don't expect 3D World to be on sale for 5 bucks or so. It devalues their software/business. If that's the case, many will just wait for all their games to be on sale for 5-10 bucks. Look at Steam. Most AAA games dont sell well at full price compared to their console counterparts. Why? Because most will just wait for the Steam Sale. Just be thankful if we get 40-50% off on our Nintendo games.
@outburst hard to borrow a PC in the midst of snowmageddon 2015.
@rjejr 4. Doesn't it tell you the file size also???? I'm sure it does on both wii u and 3ds
Two words!!!! Virtual Console!
@AlexSora89
I think Nintendo's content always has, and always will have a steady stream of sales, why knock the price of a game when its consistently selling even if those aren't giant numbers, the value is that the game is just as good now as it was when it came out, meaning there's little reason to wait on a Nintendo game because they keep their value. other publishers will cut the price of dead or dying games to give them one last hurrah at bulk sales, before it falls into oblivion.
Yeah i won't say they should just market the game for 10 after a year, because that is stupid. However, this reminds me that i miss the old Gamer's choice that the companies used to do. Like remember how companies like Sony or Nintendo released budget verisons of their biggest hit games after 3 or so years. Yeah Nintendo should try doing that again.
Yea yea whatever fix the wii u virtual console problem which basically sucks! 😡
If sony took their time playing catch up to Microsoft's online infrastructure they wouldn't be where they are now. I really hope nintendo's next console will at least support party chat.
@bezerker99 Must have been a bad day to have beserker as a username. Had a person on my backlog update his log and say he lost all his 3ds data in a transfer, that's why I thought you were the same guy, lol.
Either way, suck man. Though I only upgrade my PC every 6-7 years, and I'm fine. Less frequent than console cycles.
wise words from Iwata
@aaronsullivan This is why they need to own the platform. He's right, if Nintendo was to move to a software-only business the company as it currently exists would cease to be: you need look no further than Sega to know that anything new would face a mountain of opposition because they couldn't absorb failures and their quality would likely degrade in the effort to do cross-platform ports.
@Dr_Lugae
I've talked before about how Nintendo maintains higher MSRPs for longer than any other company and hypothesized that it may be to artificially inflate the value of their games.
However, nothing I said mentioned the "race to the bottom" concerning game pricing, as I often wonder if this is damaging to the industry. Developers and publishers need that revenue from when the games are new, and when we do so many sales and specials, it creates an environment where gamers are more likely to wait until the inevitable and eventual sale to buy the game.
Nintendo is, however, still behind in online infrastructure, online gaming, and in many elements concerning their digital shops and presence. MS and Sony have apps for phones where you can buy games and have them downloaded to your console while you're away from home. Nintendo fans who don't understand PSN+ or Games With Gold single out the "pay for online" and complain about that--but ignore that these systems are popular and rewarding for consumers and developers. This is something Nintendo should do, and I bet they could do it in a way that puts PSN+ or Games With Gold to shame--if only they'd bother.
While I think everyone dropped the ball on internal storage this generation (my girlfriend's Xbox One is already full and my PS4 is getting there), Nintendo's downright pathetic 32GB of storage for a modern game console is just that--pathetic.
My point is that Nintendo defending this "slow and steady" approach is largely indefensible as, where they are now, they look like they're woefully behind the times to everyone but the most dedicated Nintendo fan that has never even played a different console. MS and Sony made some mistakes here and there early on, but they used them to build powerful online infrastructures that support hundreds of games and millions of gamers. They always looked like they were advancing, while Nintendo looked like they were falling behind--and now, Iwata is defending this falling behind as if it benefited them--and it didn't.
@IceClimbers
To say that Nintendo is the only company that publishes games that retain value is flatly incorrect and comes off as fanboyishly ignorant. You had to have known that was not a wise statement when you typed it. Was that bait?
For one thing, Nintendo has published their fair share of duds that have aged terribly--Urban Champion anyone? Zelda II? Flingsmash? And frankly, many of their motion-controlled efforts for the Wii feel dated and old already.
For another thing, countless developers and publishers have created games that have held up through the years and are still loved and valuable now.
As I noted before, Nintendo maintains higher MSRPs for longer than any other publisher, which comes off as more anti-consumer than anything. They artificially maintain value of their games in this way. Hell, and yes I deliberately checked this, both a local Wal-Mart and Target still have Metroid Other M for $50. Meanwhile, hugely popular titles like God of War III and Halo 3 can be purchased for lower MSRPs for newer customers.
Per the other point, countless games over the years not made by Nintendo have held up extremely well, dating all the way back to the 2nd, hell, even the 1st generation. Galaga remains brilliantly fun and playable and valuable over 30 years after it's debut. The original Ms. Pac-Man? Still awesome. Hell, Q*Bert just got a revival on the PS4 and Vita.
That Nintendo keeps their prices higher for longer does not mean they magically hold value. It means Nintendo wants to milk consumers for longer than any other publisher. Because Metroid Other M sure as hell is still not worth $50, and yes, it is still being sold for that in some places.
@XCWarrior Ha, that is me on your BL! Yes, I lost all my save data. What's up, dude???? I'm slowly getting over it but I'm still upset.
@DESS-M-8 - The Wii U software has always been measured in MB and GB as far as I can recall, but if you go into the eShop on 3DS to download anything it's size is always measured in blocks. LoZ:MM 3D is 5055 blocks. All of the storage management is done in blocks, even though all the storage is on an SD card measured in GB.
@rjejr
The problem there is that Nintendo had two very different teams developing these pieces of hardware. Which is why, outside of the stupid "blocks" system, the 3DS did so many things right while the Wii U is a mess in so many ways--for instance, requiring an extra menu to get to Wii games. Ugh.
@Quorthon - "requiring an extra menu to get to Wii games. Ugh."
I don't mind the extra Wii menu so much, I just think of it as a folder for Wii games, but they should have figured out how to make the virtual Wii share the Wii U storage. I have a 120GB external HDD hooked up to my Wii U but I still can't DL all of my Wii games at the same time b/c I never got a big enough SD card. There are a lot of VC and Wiiware games I own that I never finished b/c I never redownloaded them after I transfered my Wii to Wii U. If I could just go in and DL them all I would.
BTW - been noticing you're posts for the past few months now, not sure if you're new around here or just posting more, but we agree a lot, I think my posts are down about half b/c you already posted what I wanted to say, so thanks for that, I hate typing.
"The right answer" is catering to normal gamers and hardcore gamers, and not focus most of your effort and resources on catering to soccer moms, little kids, and casuals who don't give a crap about Nintendo or consoles games anymore.
The faster Iwata retires the faster Nintendo can stop thinking marketing to hardcore gamers is somehow the worst move possible.
While I'd wish that Nintendo would've adapter earlier/faster, I think Iwata is right to be careful because of the development in the gaming sector. I know some people who mainly play F2P titles and this can change their demands. So since Nintendo haven't fully adapted to recent developments (few eShop titles are given away for free) and are somewhat beginners in this, they have to be caucious before they make any crucial mistake. Because you know it went with Sega and some other examples, too...
I think this part of Iwata's statement describes it best:
"The ways to have fun have expanded. At the same time, [...] focus on the value of the content is increasing, based on their idea that content can also be free. How we deal with this situation [...] will be the key point for us. If we find the right answer, Nintendo will prosper as a company that creates content. If we make a big mistake, on the other hand, our business structure will collapse."
@rjejr
Ha, well that works. I love typing and talking of gaming.
My bigger annoyance with the "having to load the Wii menu" stems from the extra steps, the strangely slow time, and having to juggle controllers to do it. The interface should be as straight-forward as it is on the 3DS. There's my DSi Ware game, right on the surface. Click on it to open it. It should be that easy.
Instead, it's open Wii Menu. Pick up new controller to activate Wii Menu. Wait for Wii Menu to open. Select SD card menu. Wait for SD card menu to open. And now so much time has passed, I've lost interest in the game and am now hungry.
So to speak.
@Quorthon - Yeah, all of that is probably another reason why I haven't redownloaded a lot of my Wiiware and VC games, b/c you're right, it's too much work to play them.
I'm hoping the Virtual Console gets a bit of an overhaul. I haven't bought anything there yet, but make the portable library available on the Wii U and vice versa, and then introduce crossbuy, linking a game purchase to your NNID so that you don't have to buy every game twice. I can only speak for myself, but that would make me buy A LOT of VC titles.
@Dr_Lugae The games at rock bottom prices on android/apple stores for a reason and people know this. Most mobile games are packed with advertising and DLC.
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