Nintendo Will Consider Mergers And Acquisitions, Says President Iwata

[Adam Jensen_v1legacy]

Let's remember those were the same kids who said

No those weren't the same kids and you're missing the point. The point is that an amateur could have predicted the EXACT REASONS why it's a bad idea.

 

[fix-the-spade]

Buy some 3rd parties just so they can't screw you over any more.

Wrong way round, Nintendo have managed to make their hardware a toxic environment for third parties. They offer none of the combined marketing pushes and historically their SDKs have been expensive and difficult to get a hold of.

They've been throwing their weight around as if it's still 1994 and they're the option with the best market share and fastest hardware, it hurt them only a little through the N64 to Wii years as games weren't massively costly to port and something like Timesplitters could sell under a hundred thousand units and be (just about) profitable against the cost of porting it. The price of development has risen but selling under a hundred thousand units on the Wii U is still a real possibility for third party titles thanks to poor uptake of the console and Nintendo's total ambivalence towards third party releases.

So after two decades abusing third party developers Nintendo finds itself in a situation where it literally can't give Wii U SDK's away now and it can't drive sales with it's own releases, payback's a *****.

As for joining forces with Apple, that's a bit daft. They should be releasing old (GBA and back, N64 and back) titles onto tablets for sure, but blindly entering a partnership with one company isn't the way to do it.

 

[Aiddon_v1legacy]

Perhaps, but most of their current franchises can be traced back to their early days, when they were young, and vibrant, and churning classics out at a consistent rate. Since then they've depended on those same franchises every generation, most of which follow the same formula as the old ones. Fire Emblem, a series that I love, nearly got cancelled for that reason.

We can expect to see the same lineup of titles every generation from Nintendo, as well as two or three games featuring Mario every year. Occasionally something new, like Pikmin or Wii Fit will get thrown in, but it's rare. I'm not saying that they should stop making those games, or even put them on other consoles. I'm just saying that it would be healthy for them to pick up some more outside developers in order to get some healthy outside influence and experience. Square Enix did that, and now almost all of their profitable games seem to be coming from a single studio.

I'm going to be blunt here; wanna know WHY Nintendo seems to be very slow to make new franchises?

1) Because they have been around so long they've hit nearly every kind of genre you can think of. Adventure games, visual novels, action, space shooters, RPGs, turn-based strategy, FPS, real-time strategy, fighting, racing, 2D platformers, beat 'em up, puzzle, party games, sports, tower defense and this list keeps going on. The only genres they really haven't done are realistic sports and....y'know, I can't think of another one. And this leads into 2:

2) Nintendo realizes a new IP HAS to be more then just a name. Let's face it, that's what most "new IPs" are; they're people basically designing childhood ideas. It's why you have so many "spiritual successors" as of late. Nintendo realizes a NEW IP must be something truly unique to the Nintendo lineup. You can't just reskin something or slap on a gimmick and pretend that qualifies as truly new. No, Nintendo does not tolerate that kind of laziness. It's why you see Zelda get a new gameplay hook in every entry. If a team DOES find a gimmick that can truly stand on its own than that's fine. There's no point to artificially expansion of IPs.

 

[Fox12]

I'm going to be blunt here; wanna know WHY Nintendo seems to be very slow to make new franchises?

1) Because they have been around so long they've hit nearly every kind of genre you can think of. Adventure games, visual novels, action, space shooters, RPGs, turn-based strategy, FPS, real-time strategy, fighting, racing, 2D platformers, beat 'em up, puzzle, party games, sports, tower defense and this list keeps going on. The only genres they really haven't done are realistic sports and....y'know, I can't think of another one. And this leads into 2:

2) Nintendo realizes a new IP HAS to be more then just a name. Let's face it, that's what most "new IPs" are; they're people basically designing childhood ideas. It's why you have so many "spiritual successors" as of late. Nintendo realizes a NEW IP must be something truly unique to the Nintendo lineup. You can't just reskin something or slap on a gimmick and pretend that qualifies as truly new. No, Nintendo does not tolerate that kind of laziness. It's why you see Zelda get a new gameplay hook in every entry. If a team DOES find a gimmick that can truly stand on its own than that's fine. There's no point to artificially expansion of IPs.

But then you seem to be suggesting that they've done everything worth doing, and I don't think that's true. Just because they have Metroid doesn't mean they can't have another great Sci-fi game that's completely different. I haven't seen a story driven game like The Last of Us, an interactive narrative like Mass Effect, a fluid combat game like Kingdom Hearts, or a hardcore RPG on the same level as Persona come anywhere near the Wii. There are plenty of innovations that can, an are, made across every genre. I'm not hating on Nintendo, I love Nintendo, I have a 3DS sitting beside me right now. But the fact remains that they need to innovate if they want to compete, and they can't innovate in the same direction as Sony and Microsoft. Furthermore the shouldn't have to. Nintendo can't afford to keep the statis quo any longer, and now I think their realizing that. But in order to bring in the good kind of innovation, the kind that creates high quality merchandise and art, they need to bring in outside perspectives, including third party developers from the United States and Europe. If they purchase talented third party developers, or at least seek them out diligently, then they will have a larger catalog to work with, a catalog that fits more in line with the unique structure of the Wii.

 

[Aiddon_v1legacy]

But then you seem to be suggesting that they've done everything worth doing, and I don't think that's true. Just because they have Metroid doesn't mean they can't have another great Sci-fi game that's completely different. I haven't seen a story driven game like The Last of Us, an interactive narrative like Mass Effect, a fluid combat game like Kingdom Hearts, or a hardcore RPG on the same level as Persona come anywhere near the Wii. There are plenty of innovations that can, an are, made across every genre. I'm not hating on Nintendo, I love Nintendo, I have a 3DS sitting beside me right now. But the fact remains that they need to innovate if they want to compete, and they can't innovate in the same direction as Sony and Microsoft. Furthermore the shouldn't have to. Nintendo can't afford to keep the statis quo any longer, and now I think their realizing that. But in order to bring in the good kind of innovation, the kind that creates high quality merchandise and art, they need to bring in outside perspectives, including third party developers from the United States and Europe. If they purchase talented third party developers, or at least seek them out diligently, then they will have a larger catalog to work with, a catalog that fits more in line with the unique structure of the Wii.

And again, you're going on about essentially artificial expansion. Those franchises weren't exactly breaking new ground in terms of gameplay when they were released. And that's the thing: gameplay. What does a game to gameplay-wise to justify itself in the Nintendo catalog? Does this actually do something new and exciting or is it just polishing old ground at best? It's one thing if Mario stays Mario, Zelda stays Zelda, Metroid stays Metroid, Fire Emblem stays Fire Emblem, Donkey Kong stays Donkey Kong, etc due to them being honed to razor sharpness from their extended tenures. A NEW IP must be unique amongst that catalog. Not exactly an easy thing to do. If all you're doing is slapping a different name and aesthetic onto something you're already doing and trying to pass it off as a new IP, then you FAIL as a designer

Furthermore, they have also said there are just some genres they're not interested in such as The Last of Us style games. It doesn't fit them. And I very much doubt they would acquire devs just to fill in blanks with genres.

 

[VinLAURiA]

Before any Yahtzites get excited, Iwata's statements mean buying other companies, not being bought themselves.

I know most of you get hot under the collar about the Big Bad Toymen finally getting put on a leash or something, but you'll just have to keep praying into your PS2 love pillows a little longer.

 

[Hero of Lime]

I know it won't happen, but even the crazy thought of Nintendo being bought out or merging with Apple makes me nauseous.

I do like the idea of discounts for loyal customers, though I think Club Nintendo is an already solid rewards program.

 

[Roxas1359]

I know it won't happen, but even the crazy thought of Nintendo being bought out or merging with Apple makes me nauseous.

I do like the idea of discounts for loyal customers, though I think Club Nintendo is an already solid rewards program.

Although the prizes in Europe are way better than the US rewards most of the time, and as for merging with Apple that is literally impossible as it's illegal for that to happen. Really this is just Nintendo saying they might acquire smaller 3rd party developers and make them first party, which is what Sony has had to do since it started (Naughty Dog, Santa Monica, Sucker Punch), and what Microsoft had to do as well (Rare). Really I'm glad they'll be doing this because it might also mean more 3rd party support since then they can pay for development more on things like how they did for Bayonetta 2 and Platinum. Nintendo in the past just would release a console and then everyone wanted to develop for it because they had such a large market share in the industry, but after the PS2 it shifted to Sony, while Microsoft was buying exclusives.

 

[Aiddon_v1legacy]

I know it won't happen, but even the crazy thought of Nintendo being bought out or merging with Apple makes me nauseous.

I do like the idea of discounts for loyal customers, though I think Club Nintendo is an already solid rewards program.

Japanese corporate law actually makes mergers with non-Japanese companies illegal. While Japanese companies can buy non-Japanese ones, the opposite is not possible. There's basically no threat of foreign intervention with Nintendo, something too many people seem to forget. Though at least it's not as annoying about people constantly repeating "marketing, advertising" day-in, day-out.

 

[Fox12]

And again, you're going on about essentially artificial expansion. Those franchises weren't exactly breaking new ground in terms of gameplay when they were released. And that's the thing: gameplay. What does a game to gameplay-wise to justify itself in the Nintendo catalog? Does this actually do something new and exciting or is it just polishing old ground at best? It's one thing if Mario stays Mario, Zelda stays Zelda, Metroid stays Metroid, Fire Emblem stays Fire Emblem, Donkey Kong stays Donkey Kong, etc due to them being honed to razor sharpness from their extended tenures. A NEW IP must be unique amongst that catalog. Not exactly an easy thing to do. If all you're doing is slapping a different name and aesthetic onto something you're already doing and trying to pass it off as a new IP, then you FAIL as a designer

Furthermore, they have also said there are just some genres they're not interested in such as The Last of Us style games. It doesn't fit them. And I very much doubt they would acquire devs just to fill in blanks with genres.

But how is it artificial expansion? There are tons of genres they haven't touched. A real hardcore stealth game? Not really. A successful survival horror series? Not since RE4, which was obviously third party. A great 3rd or even 1st person shooter? Nothing there. Those genres can be done well. You can argue that those games don't fit Nintendo's style, but that's EXACTLY why they need to attract third party developers: to make the kinds of games they can't. Yes, Mass Effect and Spec Ops are both third person shooters, but are they really anything alike? Should Spec Ops not exist just because other third person shooters existed before it? It wasn't just another shooter with a new skin, it was an intelligent and thoughtful masterpiece in its own right. Nintendo innovated their genres in the past, but they haven't really done that since the N64, or the Game Cube at best. It's not a question of whether a genre has been done before, it's a question of whether you can improve upon the formula.

Furthermore Nintendo games can't just stay the same. They may be honed to razor sharpness, but then why should I keep playing? I have Ocarina of Time and Majoras Mask, why do I need the newer titles if they're the same, or worse? I have Metroid Prime and the classic Metroids, why do I need Other M? I have the classic Marios and Mario 64, do I need the new games? Have they actually improved upon the formula at all since the Game Cube? They can't even innovate their own franchises, much less their respective genres. The truth is that they are totally derivative. That's why Fire Emblem, which I love, was almost discontinued. That's why the average consumer doesn't want a Wii U. Mass Effect and TLoU didn't revolutionize game play, but they did things we've never seen before in a video game, and story wise they've been blowing Nintendo out of the water. And at the end of the day, your Mario jumping mechanics can be great, but the audience is going to follow a good story. It was true of the PS1 and FF7, and it's true for Mass Effect, Spec Ops, and TLoU now.

 

[gizmo2300]

Too bad THQ already went over, Nintendo could've gotten some pretty sweet IP by just buying them

 

[Hero of Lime]

I know it won't happen, but even the crazy thought of Nintendo being bought out or merging with Apple makes me nauseous.

I do like the idea of discounts for loyal customers, though I think Club Nintendo is an already solid rewards program.

Japanese corporate law actually makes mergers with non-Japanese companies illegal. While Japanese companies can buy non-Japanese ones, the opposite is not possible. There's basically no threat of foreign intervention with Nintendo, something too many people seem to forget. Though at least it's not as annoying about people constantly repeating "marketing, advertising" day-in, day-out.

Good to know, though I was pretty sure it was impossible anyway. Nintendo is dealing with some problems, but merging with another company would be too drastic and unnecessary.

I know it won't happen, but even the crazy thought of Nintendo being bought out or merging with Apple makes me nauseous.

I do like the idea of discounts for loyal customers, though I think Club Nintendo is an already solid rewards program.

Although the prizes in Europe are way better than the US rewards most of the time, and as for merging with Apple that is literally impossible as it's illegal for that to happen. Really this is just Nintendo saying they might acquire smaller 3rd party developers and make them first party, which is what Sony has had to do since it started (Naughty Dog, Santa Monica, Sucker Punch), and what Microsoft had to do as well (Rare). Really I'm glad they'll be doing this because it might also mean more 3rd party support since then they can pay for development more on things like how they did for Bayonetta 2 and Platinum. Nintendo in the past just would release a console and then everyone wanted to develop for it because they had such a large market share in the industry, but after the PS2 it shifted to Sony, while Microsoft was buying exclusives.

It would be interesting to see who Nintendo could acquire these days, most developers would rather make games on multiple platforms. I think it would be almost impossible for Nintendo, or any of the big three to buy a big studio without paying an incredible amount of money.

 

[Roxas1359]

It would be interesting to see who Nintendo could acquire these days, most developers would rather make games on multiple platforms. I think it would be almost impossible for Nintendo, or any of the big three to buy a big studio without paying an incredible amount of money.

Well I'm seeing some people think that they could buy some of the big AAA publishers, which makes me laugh because that would pretty much cut their total cash pile in half since those companies are worth so much themselves. If anything their best bets are to go and buy some of the smaller studios first. Some of them could be Platinum Games, Hal Laboratories (they are still second party), and Retro (second party still). Out of all the possibilities of them buying an actual AAA publisher, Capcom would probably be the cheapest one since Capcom's worth isn't so much, and to be honest I'd rather have Nintendo keep Megaman safe than leave him in the hands of Capcom.

With this as well, they could also pay developers to port certain games to their systems, which is what Sony and Microsoft have had to do which is why they have such a large 3rd party support. For example, they could pay Square Enix for a port of Kingdom Hearts 3 onto their system. Really one of the main things I'm glad about is that Nintendo is finally gonna use different business models to improve themselves, because no business strategy lasts forever as some people like to think they do.

Too bad THQ already went over, Nintendo could've gotten some pretty sweet IP by just buying them

Some of their IPs are still in Limbo to my knowledge, so there is still some chances for it. Plus some lesser developers bought the rights to Darksiders I believe and haven't used it yet.

 

[Atmos Duality]

Well, something finally had to change.
The arrogant "We're Nintendo. You bend to OUR trends!" attitude couldn't keep them going forever.

That, and the unexpected success of the Wii poisoned their thinking. I'm just glad they recognized how badly with the WiiU.

 

[Dragonbums]

Does that mean they will finally buy SEGA? That company has been very friendly with them lately.

 

[Roxas1359]

Does that mean they will finally buy SEGA? That company has been very friendly with them lately.

No, because that would cost them way too much. SEGA's game division alone is worth about 5 billion US dollars, and they are extremely successful, so there is no way SEGA Sammy would sell SEGA itself, and SEGA Sammy is currently worth about 4.3 billion. SEGA will continue to be 3rd party for as long as it wants. If anything it means they'll buy smaller studios that will let them expand their 1st party IPs, and they will probably start paying some 3rd parties to port games over to their systems. You know, what Sony and Microsoft have had to do for ages now, so this can be more of a good thing as long as they pick and choose the games to pay for a port.

As for studios, they could buy the smaller ones like Platinum Games, and they can finally make Retro and Hal Laboratories 1st party as Nintendo doesn't own them actually, both of them are second party (it's like how Insomniac is for Sony). The only possible 3rd Party publisher they could probably get cheap would be Capcom as they are only worth around 2 billion now.

 

[Strazdas]

Ya, I'm confused as well. Was the Wii Fit really that popular?

Though, it might not be stupid to focus on a specific market. Games for senior centres and children's hospitals? It could work.

Wii Fit shipped 22.69 million units. However thing to note is that those arent "true" sales because it was a forced bundle. Not that it matters as that isnt actually a healthy game despite the name.

The most units sold game ever in history of gaming is Wii Sports btw. But it also had the bundling "oversale" problem.

actually quite funny as nintendo holds the top 15 best selling games ever and only 16th place is a non-nintendo released game (ironically: Kinect Adventures! by microsoft)