WiiUBattery_610This week has a seen quite a lot of Nintendo news. On the bright side Nintendo has a lot planned for their console in the upcoming future. Super Smash Bros and A new Zelda title (Hyrule Warriors not included) . On the other hand, the Wii U continues to disappoint at retail, and the company has recognized that opportunities with its hardware aren’t being fully realized to their potential.

Today’s story is a big suprise. Speaking to Japanese outlet The Nikkei, president Satoru Iwata says that he hasn’t ruled out aligning Nintendo with another company. “We should abandon old assumptions about our businesses. We are considering M&As as an option,” Iwata says. “For this reason, we’ll step up share buybacks.” Which explains why the company made a $1.2 billion stock buyback. The market reacted favorably to the move, as profits increased by 8.2 percent per share.

Of note in The Nikkei piece is Iwata’s response to a question about the company’s listing on the stock index. “Quarterly earnings reporting is not a good fit for Nintendo,” Iwata says. “We don’t know in advance how much of a hit a product can be.”

Despite the current financial trouble, don’t expect the company to go private.  “But it is thanks to the stock market that Nintendo has grown to what it is today,” Iwata says. “I don’t want to turn to a management buyout just because we are inconvenienced now.”

My Take: I personally am concerned. I think that the gaming market needs 3 consoles. There’s a delicate balance. But with Valve’s new Steam Box…will Nintendo be out of the running for good? There is something to be said about the leaders of the company not having faith in themselves to come back from such a fall. Was their creativity and urge to innovate their downfall?

Stay tuned.

ABOUT >> David Roberts
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  • BIO >> David Roberts is a professional designer, photographer and freelance illustrator that has a passion for everything art and media related. Has an affinity for good coffee, craft beer, and video games. www.davidrobertsart.com
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