Buried within Nintendo's financial reports today are some interesting details on changes at a management and board room level; they suggest that Tatsumi Kimishima is keen to restructure the business and make his mark.
Nintendo is introducing an Audit and Supervisory Committee and an Executive Officer System. The first of those will consist of a majority of 'Outside' Directors, who are from external sources and have the aim of improving auditing and corporate governance.
The Executive Officer system, however, affects some notable figureheads. First of all, below is Nintendo's explanation for the move.
(1) Reason for Introduction - By separating the management decision-making and supervisory functions from the execution of operations and accelerating the delegation of authority to execute operations, the Company aims to clarify the responsibility for the execution of operations and establish a more flexible management structure which can appropriately and swiftly respond to the rapidly changing business environment.
(2) Outline of System - Executive Officers will be appointed by the resolution of the Board of Directors. -A Director may act concurrently as an Executive Officer. - Executive Officers will hold their office for one year and may be reappointed.
Of note is the fact that Reggie Fils-Aime and Satoru Shibata (currently Presidents of Nintendo of America and Nintendo of Europe) will fall under this system. In the proposed new management structure they come low down in the pecking order - the following is from Nintendo's financial report:
- Representative Director, President Tatsumi Kimishima
- Representative Director, Technology Fellow, Genyo Takeda
- Representative Director, Creative Fellow, Shigeru Miyamoto
- Director, Managing Executive Officer, Shinya Takahashi (General Manager, Entertainment Planning & Development Division Supervisor of Business Development Division, Development Administration & Support Division)
- Director, Managing Executive Officer, Shuntaro Furukawa (General Manager, Corporate Planning Department In charge of Corporate Analysis & Administration Division)
- Director as an Audit and Supervisory Committee member, Naoki Noguchi
- Outside Director as an Audit and Supervisory Committee member, Naoki Mizutani
- Outside Director as an Audit and Supervisory Committee member, Yoshimi Mitamura
- Outside Director as an Audit and Supervisory Committee member, Katsuhiro Umeyama
- Senior Executive Officer, Shigeyuki Takahashi (General Manager, Finance Administration Division Supervisor of General Affairs Division In charge of Quality Assurance Department)
- Senior Executive Officer, Satoshi Yamato (General Manager, Marketing Division In charge of Advertising Department)
- Senior Executive Officer, Susumu Tanaka (General Manager, Licensing Division)
- Senior Executive Officer, Hirokazu Shinshi (General Manager, Manufacturing Division)
- Executive Officer, Ko Shiota (General Manager, Platform Technology Development Division)
- Executive Officer, Satoru Shibata (President, Nintendo of Europe GmbH)
- Executive Officer, Reginald Fils-Aimé (President, Nintendo of America Inc.)
It's relatively difficult to surmise how this will change - if at all - the internal management processes of Nintendo. What it does do, though, is demonstrate the pecking order within the company - it's arguably been common knowledge that the managerial lead is taken in Nintendo's Kyoto HQ, but the positioning of Shibata-san and Mr Fils-Aime does seem rather telling in reinforcing that perspective.
Let us know what you make of this in the comments.
[source nintendo.co.jp]
Comments 50
Meh
I really hope that Nintendo are moving towards, if not merging NOA and NOE, then at least presenting a single entity/united front end to which 3rd party devs and publishers can interact with Nintendo and submit their games to. Having to do separate submissions for NOA and NOE as is the case at the moment is a largely pointless duplication of effort for the majority of small to mid sized games.
Um.. not sure if this is good or bad news. It sounds bad to me, but maybe it's just because of all the other bad news today that this sounds worse than it really is.
So what exactly is the point of Reggie's role now?
@FragRed Cheerleader for NoJ's decisions.
Does this show Nintendo cares very little about markets outside Japan? I don't know, it's all business talk.
I don't like the fact that they're giving outsiders so much power...
Job titles looks randomized out of the following words: representative, managing, creative, executive, president, director, member, officer.
Yeah, keep Miyamoto high in the ranks! As if he has any clue...
To be honest...this is just like reading Greek. All we want to know is what we can expect with the new hardware. When we can expect our games. Hooray for new business structure, woo! Party! Sake! >_< Seriously, I say focus on what you have and make it work.
it's an attempt to show that they are doing something.
This is making them more like a Western company. It means individuals will have less power.
Possibly because they feel the Wii U was the vision of one particular person or a small group, and in hindsight it was maybe a dumb vision. More people will have input on big decisions now.
Meh, I'm sure people will just continue to assume all decisions they don't like the outcome of are made by Nintendo's various Twitter accounts and keep directing their displeasure there.
This says a lot about how they view anything from outside of Japan... damn this is not good news, NCL makes leotarded decisions all the time!
ofcourse the real power is in the kyoto office,its always been like that and i dont think it should change.nintendo is a verry japanese company and im fine with that
Personally, maybe, possibly, I think this is a way to out Reggie or Shibata if needed.
By determining positions held for one year with re-appointment, "to respond to rapidly changing business environment" they could see someone else appointed if results aren't up to scratch.
And honestly, if Nintendo would get the right guy in charge of the western market they could become a serious force in the west. But they also need to get the right guy, AND delegate enough authority to them to make those needed changes.
Maybe I'm way off here though. Idk.
Hmmm, troubling times ahead. With NoA and NoE executives so low in the ladder, it's easy to think that a lot of the bungled info/releases of their respective branches were out of their control.
Personally, a lot of the news today has been really concerning. This is the most unsure I've been about Nintendo in my life.
Pfffft... Reginald.
I don't live in Europe so I have no idea about the competence or incompetence over there at the offices of NoE but NoA has been long overdue for changes. I'm not saying fire Reggie or anybody because I don't like to see people out of work. But his role needs to be reduced and new leadership needs to be put in place. Every time Reggie talks I just sit there shaking my head in disbelief at some of the stuff he says. Maybe it's not all his fault, maybe he's just towing the company line, but he's still the one who's in charge at NoA so it all goes back to him.
I'm unsure what all this means if much of anything. Part of me worries favoritism will fall heavier on Japan than before, but maybe I'm just ignorant of the situation.
Wow... Very very top heavy!
@JaxonH
Japan has always held all the power and this won't concede anything. Reggie has always been a PR person with no budget.
I know he's obligated to tow the company line, but I wish he'd add like he is working for the fans. I.E. when Nintendo is stupid and says something like we didn't know people wanted another FZero game. I'd like it if he said "I'd love another FZero game. Nothing to my knowledge is being created but I'll push the idea with Miyamoto." I know you don't have any power but act like a fan of your products instead of just touting we should be happy with existing games.
@JaxonH @Gamer83
I honestly feel that NoE have been doing the best they can with what's being thrown at them from Japan. Shibata pushing the first print editions/special editions in Europe plus the basic new3DS model show that they are more in tune with their audience then NoA are.
NoE also technically have more freedom than NoA do. NoA are basically a spokesman for Nintendo Japan whereas Nintendo Europe actively tries to engage with fans in a meaningful way (for example, bringing over Xenoblade Chronicles to Wii).
Nintendo UK, who are responsible for running the social media accounts, have next to no power. Due to the budget given to NoE by NoJ, Nintendo UK's marketing budget was at an all time low during the Wii U's life span.
They had TV adverts but were forced to advertise safe games like Animal Crossing, Pokemon and Tomodachi Life on children's TV channels rather than any major pushes with games like Bayonetta 2.
Nintendo Europe were the last to know about the 3DS XL, this is a great example of how Nintendo Japan are. NoE didn't know a damn thing about the product until the direct announcing it was being filmed (source: I speak to Nintendo EU staff every so often and get these stories over a pint).
@Sanicranfast - please refrain from profanity. Thanks muchly
I doubt this means very much for Reggie and Shibata. I've always viewed them low on the pecking order anyways. They were really no more than glorified branch office managers, the folks that run the day to day operations of their respective regions.
Honestly, I think having outside directors could be a good thing. I'm assuming they'll basically act as consultants. Nintendo was so darn slow to adapt when things were kept internally, they need some outside blood to smack them in the face if needed. As long as the influence yields positive results for the consumer. Then I have no problem with it.
@Sanicranfast
Yeah, to be fair to NoA as well, the Japan offices are the biggest problem. I'm hoping, however, that Tatsumi Kimishima gives both branches a little more freedom. Truth is though, I really have no clue what any of these changes described in the article mean in the long run. I'm just going to kick back and hopefully enjoy the ride. I've been more of a PlayStation guy since Sony entered the market, and I'm more on board with Xbox as well, but the first console I ever owned was an NES and I'll never forget that Christmas day in 1987 when I first held a controller and played Super Mario Bros. 1. I just love video games at the end of the day, and Nintendo is a big part of why I got into this hobby so I want to be won back. I've always loved the portable systems but a Nintendo home console hasn't been my favorite of its respective generation since the NES (I ran with Sega in the 16-bit era, though will admit, SNES ended up being the better console long term).
Reginald has failed, and this is how they will finally get rid of him! Hahahah
Just put reggie in charge! Id prefer it if they sacked shiggy!
I think Nintendo should be more unified as a worldwide company, it feels so separated and I bet the 3rd Parties have a tough time having to go through each division individually. Then again, what do I know? I just hope they make the right decisions.
@JamesCoote
But that would just result in Europe getting ignored more.
I was only interested in seeing what Reggie's actual name was...
Sure I could have just looked it up, but it's not exactly top of my to do list. crosses number 2 of his to do list
Biggest thing I get out of it is that Kimishima is trying to reign in the company by bringing in outside voices and establishing a more rigid power structure...I think the gap in software announcements is partly because he's trying to retool the company, even if it's not being said out loud. Wait and see and play through the backlog I guess.
@Sakuraichu Quite the opposite. Only the other day I spoke to a developer in the process of submitting to NOA lotcheck. When I asked why not Europe at the same time, the dev was like "Want to get it sorted in NA, then we'll submit it to Europe later". Many of those devs never get as far as "later", because they get burned by the arduousness of the process of getting it onto one territory and conclude it's not worth doing all that again (especially if sales are less than great).
Today I produced two versions of the same trailer, one for NOA, the other for NOE. Two slightly different intros, two slightly different outros, uploaded to two different web portals using two different upload tools. Now multiply that across the entire publishing process.
They need the equivalent of a Mark Cerny to come in there and shake things up, and explain the do's and don'ts of making hardware that appeals to western 3rd parties.
This list also seems to be telling of some inherent racism within the company. It would go a long way in adding some international perspective to Nintendo if the board of directors has any sort of diversity.
Getting ready for a takeover, who stays and who goes, in pecking order.
Given the market share of the West, this seems like a bad idea to have them structured so lowly. It probably doesn't change much from the present, but perhaps they should change some things going forward.
I like both guys so hope it don't mean they are getting less influence meaning less games coming out of Japan etc.
@JaxonH truer words have never been spoken. NoA also needs to find out what the heck they are doing with their localizations.
@StuOhQ Hardly. Nintendo is a Japanese Company located in Japan. Not only that, but they are a Kyoto Company meaning they adhere to a very Japanese Corporate ethos and philosophy, hence the saying "Kyoto is more Japanese than Japan". Why would they place Westerners (particularly Americans) anywhere near the top?
@Utena-mobile That kind of mentality will be the death of them. The more they force their philosophy on a global community that doesn't agree with them, the more their fanbase will continue to shrink. Trying to force your views on your audience generally doesn't work, you need to cater to their needs, that's how capitalism works. If Nintendo wants to survive as a business they'll need to bite the bullet on this, otherwise they'll be left behind.
Kimishima's keen to emulate the Tokugawa dynasty, it seems. Nintendo's restoration of making its overseas chiefs simply viceroys like in the '80s and '90s will hopefully not damage their international partnerships that they've been gradually establishing in the last decade, but it sounds like it will. Well, at least Wii U had some good indie games. Sad that we probably will see very few on NX, in this case...
@JamesCoote It doesnt work just like that, you need approval for all the countries, rating of the games, that is different, but as you said, them working together as one company instead of siblings fighting to impress the parents would be nice for a change. Usually we see for example games released physically only in one region or the other. Or games with spanish subs only for europe, when all latin america count on the sales of Nintendo of america as we import their games and consoles, not from Europe.
@StuOhQ To be fair the outside auditors are all Japanese which would actually mean they might actually be focusing on analysing changing what Nintendo of Japan does firstly to improve the overall business.
Given NoJ already has the majority of control they'll probably the first part of the company to be considered, any changes would probably end up giving NoE and NoA more responsibilities as time passes. As the article says they're focusing on flexibility to change their business to quickly react to market demands so the names and roles on that list should change over time, chances are more higher up western Nintendo staff will join that list and the order for everyone below the President of Nintendo may shift depending on market.
Also keep in mind Kimishima was a Nintendo of America Employee for a long time.
As someone who's been pretty unsatisfied with the way Nintendo has been running any kind of change is good.
@Bolt_Strike Exactly: you're right on the money with this. Claiming Nintendo is merely a Japanese company adhering to Japanese business ethics to explain their lack of a global worldview is bogus. Sony is also a Japanese company and takes a global approach with their business. Should Nintendo keep down this ridiculous path, they will continue the inevitable slide into irrelevance.
Beyond that, getting anything concrete out of the business-speak is nearly impossible for us on the outside. Still, the overall feel I got after reading it all was not necessarily a positive one. There's obviously more to it than we currently know, sure. But it's difficult to not see certain elements of the article as not boding particularly well, especially for NOA and NOE.
@Dr_Lugae I sure hope you're right about that.
@JamesCoote They don't have to merge NOA and NOE. They just have to merge the developer devisions. Very rarely do large companies have merged entities with their companies. Not even Sony and Microsoft do that sort of thing.
Also, this is a Japanese company, and the way they organize their divisions are very strange (no seriously: look at Sony. It's weird even for a conglomerate like them).
But anyway, while I don't think merging their divisions entirely would really help them, I don't disagree on merging something for better development communications (specifically, the developer relations departments).
It's probably worth remembering that Nintendo of America has only had a CEO since 2006 - it was Tatsumi Kimishima who had, until then, been serving as the president of NOA. The Regginator took Kimishima's place as president. Kimishima himself was replaced as CEO by Satoru Iwata in 2013. Remember that in business, generally, the CEO is in charge of strategic vision (what the company should do) and the President is in charge of operations (getting it done). In light of that, NOA has always had a tight strategic link to Japan. I would suggest that this "org list" will not affect the roles (or clout) of Reggie (and Shibata) at all.
As for these "outside directors", they all sit on the Audit Committee which has responsibility for ensuring corporate governance (ensuring that the company is meeting legal requirements for business and accounting practices, safety, etc. Do a search for J-SOX if you're at all interested or watch "Enron: The Smartest Guys in the Room" if you want to know what happens to a corporation when this stuff goes unchecked!). These external directors are probably there to make the shareholders a little more confident the Audit Committee isn't lying when they say that everything is roses.
@Clownshoes
Not everything NoA or NoE messes up is strictly down to the people at those branches of the company though. They have their hands tied by NoJ to some degree and because of that aren't always free to do their jobs right.
@Bolt_Strike oh, I'm not disagreeing with you on this. I agree, Nintendo seems to be driving themselves into a corner.
But I was explaining why Reggie and Satoru Shibata are at the bottom. It has nothing to do with racism and everything to do with very few people willing to go along with or even understand their "Kyoto" principles.
@Godlike_Virus "Seriously, I say focus on what you have and make it work."
Indeed, and this was the attitude they had when 3DS initially failed, they focused and made it work, lot of hard work but it paid off. Sadly, they completely lost that attitude with Wii U... Shame, they could have made it work too.
Japan's rankings within the company are heavily based on seniority. Reggie is more than likely younger than some of the other folks on the list. The ranking doesn't necessarily mean the amount of pull he has is less than some of the others. I don't think Reggie was even on the board before, so if that is the case, it is a huge step up for him and a step in the right direction for Nintendo.
Show Comments
Leave A Comment
Hold on there, you need to login to post a comment...