
Last month, a report from Bloomberg said Nintendo was looking to cut back its mobile games business.
While this could be interpreted as the beginning of the end for the entire division, it seems unlikely. As company president Shuntaro Furukawa previously mentioned in May, Nintendo is still "continuing to develop" new applications, but is not yet at a stage where it can announce any new information.
Now, during the Q&A session of Nintendo's 80th Annual General Meeting of Shareholders, the president has gone into detail about how the company's mobile operations remain a "significant" part of the plan, as it keeps consumers connected with Nintendo:
In addition to generating revenue and profit, our basic strategy with the mobile business is to expand the number of people who have access to Nintendo IP. For example, we have broadened the fan base for Nintendo IP like Animal Crossing, Fire Emblem, and Mario Kart, and in doing so increased our points of contact with consumers. The mobile business is also strategically important for the expansion of Nintendo Accounts, which support our relationships with consumers. Sales from the mobile business do not account for a very large percentage of Nintendo’s overall business, but the mobile business itself is significant in that it provides a wide range of consumers a way other than Nintendo Switch to continue to enjoy playing games using Nintendo IP over a long period. When global distribution of the Animal Crossing: Pocket Camp app began in the fall of 2017, for example, it introduced many female consumers and US consumers to the Animal Crossing series, and those same consumers later went on to purchase Animal Crossing: New Horizons and a Nintendo Switch console. And starting with Mario Kart Tour, mobile applications have proven to be a great opportunity for people to create Nintendo Accounts. In ways like these, the mobile business with its multiple objectives is contributing to the sustainable growth of the overall Nintendo business.
Furukawa also reiterated how one aim of Nintendo's mobile business was to get more people to sign up to Nintendo Accounts:
As I mentioned earlier, one of the goals of the mobile business is to create long-lasting ties with customers via Nintendo Accounts. We are establishing that through our collaboration with DeNA and will continue with those efforts.
What do you make of Furukawa's latest comments about Nintendo's mobile business? Share your thoughts below.
[source nintendo.co.jp]
Comments 94
And this is why you don't rush an article out of the door before getting confirmation. There will be a lot of retractions about Nintendo's mobile presence.
Mobile games is the future i hate most.
I will embrace the Past than the Future.
That feels like a place-holder comment. They don't want to shut the door just yet, but they must be disappointed with the performance of their mobile titles so far (in the grand scheme of things). Nintendo seem to prefer to allow things to fizzle out, rather than stamping them out, so maybe that will happen here too.
Nintendo historically doesn't like to say they're no longer supporting a console, so as to not steer people away from it entirely and potentially lose sales. It stands to reason they'd do the same with mobile especially with new Mario Kart mobile content out now. They'll pull out someday as quietly as possible and until then it'll be like how the 3DS is still alive and kicking.
Never under estimate the power of the darkside or more accurately people with more money than sense
I hate mobile games. There hasn't been a single one I've tried that I've enjoyed like I have games on dedicated gaming devices.
That said, I think from a business point of view, Nintendo would be out of their minds to abandon the mobile industry. The average consumers are not people like us. No matter how much we complain, that's not going to change.
Are people just choosing too ignore Nintendos goal here? The reason Nintendo is making mobile games isn't to purely profit on them, but to use it as a way to support their console buisness. They introduce Nintendo Ips to mobile players, and get them so engaged that they end up devoting time and money into a Switch and its games. No doubt many people who've played Fire Emblem Heroes and Animal Crossing Pocket Camp ended up supporting 3 houses and New Horizons. Its a very ingenious move on Nintendo, both attracting new Nintendo fans and making mobile money while they're at it. Its a win win all around.
The smartphone is Nintendo's biggest handheld rival. It should be keeping its characters away from this sort of competition. Or it will come back to bite them.
It’s making money so no surprise there.
I do play Mario kart tour
They're now making mobile apps, not mobile games. I think their mobile gaming days are over. Unless the Switch failed which at this point I doubt it ever will but Nintendo is in a better position then they are during the N64, GameCube, and Wii U days. A lot of support that Nintendo lose out on from this gen Nintendo now got for the Switch.
thats not what the last article said
@Trikeboy • comment #1 • "And this is why you don't rush an article out of the door before getting confirmation. There will be a lot of retractions about Nintendo's mobile presence."
REPLY: Totally agree.
This is what happens when you dont read through that linked Bloomberg article... They said they are gonna take a break from it for a while due to not having any mobile projects in the works rn and the bigger console success, which they will more focus now in these trying times. Also, they remember here what is Nintendo’s purpose in the mobile market, to bring smartphone users to their consoles.
@TheLightSpirit exactly. Matter of fact, I caught wind of the full news from a random tweet commenting on it
@Anti-Matter Get off my lawn!
There probably is at least some truth to mobile being an intro to Nintendo IP and Animal Crossing. How many did it sell on 3ds? 12 million over several years? It is probably close to 20 million after just 20 months.
Imo, they should offer a suite of silly minigames, like Street Pass, Mario Party, Game & Wario or Nintendoland. Do just enough to keep the name out there
@patbacknitro18 I think the same way. It's not "losing money" it's an investment. It works like ads, but more persuasive because you can play while they beam first party console content in your face
@patbacknitro18 I'm very glad this is the way Nintendo approaches mobile gaming. And in the end, I think Nintendo deserves to become bigger than they're now. For example, I'd love to see a proper anime for The Legend of Zelda and I hope Nintendo will keep trying to use its IP's in different types of media.
Nintendo sees mobile gaming as seed planting for their products. It’s a smart way to do it. They download the apps, find out they can utilize in-app rewards for games and instill the small seed of want to buy a Nintendo product for the full experience.
@TheLightSpirit I don't care much for mobile either, but it is nice to have the option to play on devices.
I just got an iPad and it's cool to play at least a few Nintendo titles. Mario Run looks pretty sharp.
They're not above predatory tactics if it makes money in the end. Nintendo is a company just like any other...
Hypothetical:
Why wouldn't Nintendo put an ad-supported free/subscription for no-ads Virtual Console on mobile?
I say Virtual Console, because I'm almost certain that they can't get Switch games running on a phone (barring making their own phone). This way, the software being provided is made up of meaty games, and that (should) give them the internal confidence to channel that revenue stream.
"Well, ad revenue on games is dying."
This is Nintendo we're talking about, but okay, go on.
"And since it's dying, only gambling provides any revenue."
Then they'd just continue making a scant few mobile games as is.
Wouldn't they make more money from console sales?
Animal crossing is a woman's game confirmed.
@Anti-Matter Mobile games are just one aspect of the industry though. We've had multiple 'future of gaming' things over the years yet it's 2020, the most popular console around uses cartridges rather than discs, VR has found a niche, there are gamers happy using streaming, there are people happy playing games on their phones, retro gaming has become a luxury business rather than a messy one and we are about to see console so fast their internal memory is as fast as RAM meaning no load times at all.
Most mobile games are trash but then a flick through the TV guide will show that most television is not Game of Thrones. I'm quite happy using my phone for indie games, emulators and xCloud and Stadia.
@patbacknitro18 I agree, besides Nintendo already put out that the mobile business is not making a big profit, but is helping them getting new accounts and more support for the Switch.
I think this is personally good news. So what games will it be?
Well, time to start taking out Loot Boxes from them then.
If keep just running away from markets that ban it instead of fixing the problem, there wont be much of a "market" left
@TheLightSpirit agreed. I have been surprised by a handful of free to play games on the Switch. Fallout Shelter and Asphalt. Ninjala might have promise.
I think Apple Arcade is something that I will definitely try out. $5 a month is a pretty good deal. No micro transactions or ads. But the Switch and Xbox will be my main gaming venues.
@ritouf An iPad Pro is pretty high end hardware. It is almost to the point that it is a laptop replacement. Plus the Switch is over three years old. This raises a valid point in that it is already feeling a little dated
That funny since Nintendo said a few weeks ago they are stepping out of the mobile
Google it it does say Nintendo is stepping away from mobile games
@rockodoodle If we're going to compare tech specs, the Switch was dated from the start. It used a chipset that NVIDIA overproduced when they mistakenly thought the Shield was going to be a hit, and whose successor chipset was just a few months away from release.
Nintendo never actually said they'd stop making mobile games. It was just insinuated that they would produce fewer games. It seems like that's the case. NL is getting very sloppy with reporting.
@Narrator1 isn't that how Nintendo rolls? The WiiU was outdated before it launched. And then the 3ds vs the Vita....
They just need to learn how to price their microtransactions.
Like seriously, their freemium mobile games are pretty generous when it comes to letting you play without paying, but if you even consider doing so, the microtransactions are ridiculously expensive and offer very little value.
@rockodoodle I'm not making any judgment calls. It is what it is.
Admittedly, though, I just bought my Switch for Nintendo stuff with the occasional third-party gem. Anything else I had other systems for, so I don't get antsy during the intervals between first-party Nintendo titles, like certain other people tend to.
On my mobile i only play Call of duty and strategy games. But most games i really hate on mobile. Just give me great games on my switch and the next mario kart the same treatment as they did with the mobile game.
It would really surprise me, if Nintendo would stop their mobile business.
Games like that are relatively cheap to make, yet can make a huge amount of money, which is also why parts of the gaming industry wants this as the future...
Even Nintendo games on mobile that are not regarded as success are probably at least turning even or even still make a profit. Not to say anything about the successes.
It might not be the cash cow they hoped for after Pokemon Go, for that reason it makes sense to slow down a bit and concentrate more on Switch again.
But stopping the mobile department entirely? I don't think so.
And I honestly just don't care, personally. I am not much interested in their mobile games and I don't think it has much of an impact on their usual console business either way.
Frankly, I'm disappointed that Super Mario Run didn't sell better. It's a well designed and fun game with a business model that I approve of (up front price; no nickel-and-dime DLC) and yet it's the exploitative micro-transaction games that are the most popular with customers.
I think if Nintendo could offer unique gameplay to mobile and not just cookie cutter cash grab games they might even do better.
One example of a game that could do gangbusters on mobile is Warioware Inc. Heck any touch based 3ds game could go to mobile.
@Medic_Alert This, Nintendo dosen't turn away money, I expect the odd title to release going forwards...
I never believed in the reports of Nintendo withdrawing from the mobile gaming market. It is simply way too big to ignore.
With that being said, mobile is indeed just a tiny part of Nintendo's revenue and none of their mobile games outside of Fire Emblem Heroes have earned a ton of revenue, with some of their mobile games like Miitomo, Mario Run, and Dr Mario World having flat-out failed. With the Switch being a juggernaut success, they have no real motivation to invest much more into mobile gaming.
Lets face it, the mobile market was just a plan in the wake of the Wii U's failure while the 3DS was really showing it's age.
This kinda sounds like corporate PR talk
A lot of this sounds similar to how Nintendo said they were still supporting the 3DS even though no new games come out for it at present
@Narrator1 yeah, I am not antsy at all with all the games that I have across systems. BUT... I would like a game that I truly get excited for- MK9 and Madden would really do it for me.
@westman98 Mario Run had $60 million in sales... That was in November of 2017.
That said, just at having the name out there creates market awareness, where it didn't otherwise exist. So there is an intangible benefit to just be there.
@rockodoodle
Switch makes multiple billions of dollars per year, while it took mobile over 3 years to gross 1 billion.
@Medic_Alert
Nintendo didn't go into the mobile business to create a game that took one year to gross what one of their consoles titles could make in its launch weekend.
“Cutting back” and “continuing to develop” are not mutually exclusive.
Not sure how to take this. Animal Crossing has been hyped and people have waited for a game since Wii U. It's not like there weren't four mainline games already for the series and a few smaller ones. I didn't hear many positive things about Pocket Camp. Didn't hurt that most of the world was stuck inside.
I just hope they don't start implementing loads of MTX into every game they make on their main platform, the Switch
Nintendo are one of the few AAA game makers left that don't ruin their games with modern buisness practises, stuff like Mario Oddysey I could just BUY and then have the full experience
Sure things like MK8 and Smash have DLC but Nintendo have always offered better value for money then a lot of other companies do these days with the way they monitise their AAA games
@RadioHedgeFund Those "cartridges" are flash memory, basically the equivelent of an SDcard or an SSD.
Just wanted to throw that out there because you said "most popular console uses cartridges instead of discs" but the technology used for switch carts are far more modern then disc-based content
This is why the Series X and PS5 are going to use SSD instead of HDD, it's all about flash storage nowadays, but yeah it is funny how it's sort of come full circle I guess.
Also I'd argue just because the tech is improving doesn't mean games will, a lot of games I play on my PC are monotised to heck, then look at things like the new MK where the female characters were toned down to not cause offence, imagine trying to make a modern day Duke Nukem in 2020
Then there's the argument that everything is generic these days, it's very expensive to make an AAA game so that's why 99% of them don't bother trying to make a unquie and innovative game, and instead make battle royale or something because they know it will sell.. There's far more creativity in Indie and AA these days then there is AAA
It's a predatory part of Nintendo's business. For a company that is family-friendly, the addition of gambling and loot box mechanics into children's games is unacceptable.
@rockodoodle
$60 million in revenue is pretty paltry. It's the equivalent of a $60 full-priced game selling 1 million copies, a sales milestone that almost all first-party Nintendo games on Switch have achieved with ease.
@Mountain_Man
Crazy when you think about it, right? But hey, I'd say in a sense, this is kind of in line with our times. Most people don't seem to realize that paying $10 once, is a much better deal than paying $2.99 every now and then a couple of times each month for in-game consumables. Personally, I despise mobile gaming for exactly that reason.
I'd say in general, the masses are weird, when you think about it. The most popular movies are rarely great movies. The most popular music is rarely great too, IMO. Most reality TV that becomes insanely popular, I find completely insipid. Sure, there are exceptions sometimes. But I feel that what defines something as great or being worth your money in the eyes of the masses often kind of eludes me.
So in my eye, supporting bad movies, music and TV, and supporting bad commercial schemes falls in the same bucket. lol!
I never had a problem with paying a decent, one-time price, for a piece of software I like. I'm probably in the minority who bought XCOM and Civilization Revolution on mobile because 1-these work well as mobile titles (especially on tablets) and 2- you pay once and you have access to ALL the game, with no artificial limitations like crystals, cards, or stupid secondary in-game currency or having game mechanics tweaked to make you pay (your character is exhausted, come back in a while or PAY).
Anyway, I think mobile gaming could've been GREAT. But alas, we still need dedicated portable consoles to experience TRUE gaming on the go. I'm not complaining though, as the Switch is great for that.
@Monkeido A Zelda anime sounds like a bad idea, no offense.
@Doktor-Mandrake What makes something "generic" to you? And what is "creativity" to you?
Just wanna know the difference.
@Toy_Link making $60 million in less than a year isn't too shabby for one title. As I mentioned above too, they got exposure for just being in n other platforms. And it's hardly a fair comparison given they didn't dedicate near the resources to mobile. I don't think mobile has been a failure for Nintendo if you look at it like that.
@westman98 how much did it cost to develop SMR? I can't imagine it being more than a few million, if that. Plus, it is more intended to be more of a market presence/intro to Nintendo than a pure revenue generator.
Breath of the Wild 2 and Metroid Prime 4 will both be mobile games.
Well, the report last week never said they're completely done with mobile, just cutting back. Which could still be the plan, even if cutting back means like one less mobile game a year or whatever.
Their main focus is and will always be with the Switch and whatever succeeds it. And that's all that really matters imo.
I can't stand mobile games.
@Dog To each their own.
It’s called the foot in the door method very practical of Nintendo
Take that haters!
@Zorox88 check the sales peaks. When Mario Kart Tour was released, sales for MK8DX had a bump. The same for Animal crossing. The same goes for Pokemon Go (although it is not 100% Nintendo but the VC games had a huge bump in sales and many pre-orders for Ultra sun and moon increased).
There is a relation between the mobile apps use and the console games sales, either you want to admit it or not.
@rockodoodle
Developing mobile games is cheaper than developing Switch games in terms of raw figures, but you also have to consider other factors, like the marketing costs on a 3rd party platform and the fact that you have to give Apple/Google 30% of your revenue.
I'm not saying that Nintendo should drop mobile gaming, but it's becoming increasingly clear that their mobile efforts aren't living up to their potential. I expect Nintendo to spend less of their own resources to develop mobile games and instead let 3rd party developers do all of the develop for them, much like how TPC hired Niantic and Timi Studios to develop Pokemon Go and Unite rather than making Creatures/Gamefreak/Nintendo do all the work.
Nintendo's mobile games are bite-sized experiences for non-Nintendo gamers, hoping that a number of them would be enticed enough to buy the real Nintendo games on Switch. This is just a way to expose more people to their IPs. Its not for the people who go to this website, who already know what Nintendo IPs have to offer.
@westman98 my expectations for Nintendo going mobile were pretty low. I pretty much saw it as many on this thread and quote in the article. It should be more viewed as marketing, exposure and eventual capture/revenue conversion. So even if it didn't generate a lot of money relatively speaking, this has been a worthy endeavor.
I think it's a good idea to focus on core gaming. But it seems, as mentioned above, that there are some natural fits for Nintendo to keep its name in that sector with minimal investment.
@RadioHedgeFund Agreed, there's something for everyone.
@rockodoodle
Smash Bros, Zelda, Mario Party, Luigi's Mansion, Splatoon, etc are all franchises whose entries have seen record-breaking sales on Switch despite not having any mobile titles. Also, Mario Kart 8 DX was already the Switch's best-selling game prior ot the release of Mario Kart Tour.
Mobile is definitely a good way expose more people to Nintendo's IP, but the sales success of first party Switch games is completely independent from their mobile games.
@westman98 I think it's more complex than that. If I see an ad for McDonald's McRib- that entices me to go. But when I get there, I change my mind and get a Quarter Pounder instead, was the ad a failure?
Mobile games in a nutshell
https://media.giphy.com/media/xT5LMDtIBLPk0RopmU/giphy.gif
@Ooyah like they did to the fzero series
@rockodoodle
The number of people who bought Game X (say, Luigi's Mansion 3 on Switch) because they enjoyed playing an unrelated Game Y (say, Dr Mario World on smartphone) is negligible.
If it doesn’t spread their attention or resources too thin, they should of course continue to invest in smartphone games. Look how many billion dollar companies have been created through various app crazes — it’d be business malpractice not to go after a slice of that market.
@Realnoize It's basic psychology. People find it easier to spend 99-cents 20 times than to spend $10 once. and companies use this fact to trick people into spending far more than they ordinarily would.
The only mobile games I like are tycoons and Roblox, but Roblox drains my battery, and tycoons get boring after a while, so overall I don't like most mobile games, especially the Nintendo Ones, and if the Nintendo game is half decent, it probably has a better equivalent on Switch, 3DS or even gasp the Wii U.
I wish they would make an actual GOOD mobile game.
Dr Mario had good controls and all, but it was ugly and pretty boring once you played for a while.
Mario kart had awful controls and kept getting me to ask, “this is it? There’s no more?”
Animal crossing was fine, but it just making me feel like I could be playing the actual console one instead.
@rockodoodle like a Mario party mini game compilation but for switch? I don’t know why I haven’t thought of that before! That sounds amazing! A WarioWare would be cool too!
@Thegaminggeek yeah that’s what I was thinking. They get a free sample of Nintendo, so if they like it they’ll buy it, if not who cares?
@Friendly I don’t even want to think about that lol
@SwitchplayerJohn or a Mario party mini game compilation. With touchscreen and shaking your device there is a lot of room for creativity.
@Apportal_SMM2 exactly. I get that they want to protect their IP. I think certain things lend themselves to mobile without cheapening the brand. Dr. Mario and Super Mario Run are fine. Mario Kart doesn't feel right. In addition to what I have mentioned, I think a Mario or Nintendo themed Candy Crush would be really cool.
@westman98 you could say the same thing about most ads. Even if it's one or two percent, which I think is reasonable, you are talking about millions. The point is just to keep your name out there where it was absent before. And it seems that mobile has generated at least some revenue.
Anyway, I don't think our views are that far apart- I just think that this has been worth while and it would be a mistake to abandon.
@SSJW I wonder why you have to be online/connected anyway. This is so unNintendo.
"Nintendo is still committed to mobile. Switch is just a second pillar"
That original article just didn't pass the sniff test, and just seemed to be a new take on Nintedoom writing. Nintendo's entire messaging during the Wii U Era was (and it continues to be) that it was a bad idea to depend on a single industry for revenue in today's world. This was why they invested in mobile, partnered to build a theme park, were investigating movies, and probably other ventures we don't know about. So after all that talk, why would they dump a significant investment?
Second the profit on a successful mobile game is not anything to ignore. While the risks are a little different (discoverability and competing with F2P pricing), the development costs are low and the potential earning is high. Why would they invest heavily in a mobile company only to not tap into the market?
They want to stay in the market, great, but they need to put out better games if they want my mobile cash. I was all for Mario Kart Mobile but the way they pulled it off isn't worth my time.
@Doktor-Mandrake Undoubtedly. But the original point as that the games industry not only now offers something for everyone of all ages, abilities and access requirements but does so whilst maintaining financial and creative health across the board.
F2P mobile games get a bad rep and most of them are trash but there are some notable exceptions like Fortnite and Pokemon Go that do not ram purchases down users throats and maintain a fun experience.
@RadioHedgeFund yeah true and pokemon go exploded, became insanely popular with people
@SSJW I decided to get Mario Run. I think it’s kinda cool and worth it. I don’t care for Mario Kart Tour. But I can see it enticing people to buy a Switch if they haven’t played in a while... and especially when 9 comes out.
Even if they were done with mobile games, they wouldn't come right out and say it.
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