As part of Nintendo's re-evaluation in their development and strategy process for games and marketing, the company reveals a few things such how they "sacrificed" a year's worth of profits for the 3DS and the need for new games without getting the assumption of the company only makes those types of games.
In terms of the 3DS, Nintendo was willing to "sacrifice" a year's worth of profits at the cost of their other plans and platforms for 2011 just to ensure the 3DS had a stronger start than the DS. This was meant to make investors happy and continue the strong momentum the DS generated.
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"As far as the current term, ending in March 2012, is concerned, we have decided that driving the sales of Nintendo 3DS hardware is our main priority, and in a sense, we can say that by doing this, we have sacrificed our profitability for this fiscal year," Iwata said.
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While investors were not happy at the supposed slow sales in terms of hardware, Nintendo didn't back away from the plan knowing they only needed more time for games to ensure a strong end for 2011. They also focused more on ensuring a stable future than the current fiscal term once the system outsold the amount the DS did for its first year.
In terms of games themselves, Nintendo was well aware people started to believe the company could only make Brain Age or certain "casual" games due to only those games getting high sales. They also realized this occurred due to a huge misunderstanding by consumers which ended up hurting other new IPs and lower tier titles because of those games being different than what the public believed Nintendo makes.
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"We have made efforts to develop video games that are in tune with various consumer tastes; however, we have not been able to gain adequate consumer understanding regarding our intentions, while in the common perception there are no or few core users playing Nintendo platforms, which is not the case."
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The company also has been well aware for a while the growing impact of smartphones for gaming. While the company is worried at the speed of which phones can "innovate" with games and features, Nintendo has changed their strategy to focus more on innovating more with new games to create another "Brain Age" instead of just relying on Mario or other powerful IPs.
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Iwata noted Brain Age and Wii Fit as past success stories that innovated with new gameplay styles, while at the same time being big sellers for Nintendo. He says that there plans in motion to sell new games that will break new ground in a similar fashion over the next fiscal year.
But he said he is a bit concerned about how competitors from the ever growing smartphone market can come up with new and interesting ideas at a seemingly faster rate.
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http://www.screwattack.com/news/nint...ced-profit-3ds
http://www.screwattack.com/news/nint...-misunderstood
http://www.screwattack.com/news/nint...ew-kinds-games
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Daily Recap:
1) Massive layoffs confirmed to have occurred at Silicon Knights with about 75% of the workforce released and the company currently in a restructuring phase.
http://www.giantbomb.com/news/silico...mployees/3780/
2) EA dismisses claims of their Origin digital service scanning inside people's computers after complaints of the application going as far as looking for tax returns folders during scans.
http://www.screwattack.com/news/bf3-...-spied-ea-says
3) Sonic CD and other free goodies revealed to be in the bundle of stuff given away for those who purchase Gamestop's produced Android Tablet devices.
http://kotaku.com/5855334/sonic-cd-c...blet-customers