Shortlink: https://www.dromble.com/?p=5963

Satoru Iwata: Nintendo May Consider Mergers And Acquisitions As Future Options

3ds demo event

In an interview with Nikkei, Nintendo president Satoru Iwata says they would be open to mergers or acquisitions as possible options in the near future. This is one of the reasons why they will be stepping up their share buybacks. He emphasizes that the company must abandon old assumptions about their business if they want to achieve success in new emerging markets.

“We’ll change the way we sell products, by managing customer information via the Internet. We’ll offer discounts to steady, regular customers. We’ll cultivate emerging markets and launch new businesses in health and other areas. In an emerging country, you can expand the user base only after you offer a product line different from advanced economies in pricing. We should abandon old assumptions about our businesses. We are considering M&As [mergers and acquisitions] as an option. For this reason, we’ll step up share buybacks,” says Satoru Iwata.

Satoru Iwata insists that building up their cash reserves during their successful years is why the company is able to overcome failure.  Former Hiroshi Yamauchi had stressed the importance of being conservative with their savings when things were going well.

“…Mr. Yamauchi (former President Hiroshi Yamauchi) often said “Shitsui-taizen, Tokui-reizen,” meaning that we should act regally when things are bad, and be calm when things are going well.” Were he alive now, he would tell me to carry an air of confidence. We built up cash reserves when earnings were strong. Because the entertainment industry ebbs and flows in wild swings, Mr. Yamauchi insisted it is vital to have deep pockets. Without savings, we could not have recovered from a single failure in game systems. Even now, we can afford many options because of our robust financial standing,” says Iwata.

Judging from Iwata’s comments, it sounds like Nintendo is willing to become more aggressive with how they spend their money in the future.  It makes sense since you need to spend a little if you want to remain competitive in a rapidly changing world. Should Nintendo consider acquiring any companies or studios in the future? I would love to hear your comments below.

Source: Nikkei  via  NintendoLife

6 Replies to “Satoru Iwata: Nintendo May Consider Mergers And Acquisitions As Future Options”

  1. If only they were up to that when THQ bankrupt. But that is great news, I hope they do that with western companies, they sure are lacking a touch of it and hopefully Iwata was telling the truth about more focus on west.

  2. They should acquire lots of good mid size western and Japanese developments studio and companies dealing with network and online infrastructure.

  3. Nintendo should serious consider buying Way forward. it would be good for both as Way forward can fund their games without kickstarter and grow as a studio. also equals 2D Metroid. they can do that. Nintendo should be partners with SEGA so they could be half 2nd party to then in terms of atlus and Sonic games and they can do F-zero. and Platinum games for Star Fox.

  4. I don’t see Nintendo merging or acquiring videogame companies. I think they will merge with some health content company, as they don’t have expertise in it.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.