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#Business

Satoru Iwata: Nintendo to launch low-price games; will consider mergers and acquisitions

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Nintendo chief Satoru Iwata may have attracted plenty of attention for all the wrong reasons lately following the drastic revision in sales and not so healthy projections, but Nintendo’s president may have already chalked out a plan to ensure that the gaming giant doesn’t have such a miserable year again.

Speaking to The Nikkei, Iwata revealed that the company is looking to release low-price games in emerging markets and is even looking at possible mergers and acquisitions for which it is already ramping up share buy-backs.

Iwata also revealed that the company will be changing the way it does business and will start offering discounts to 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”, said Iwata.

When asked what was the reason behind Nintendo’s poor performance Iwata said that the company was “preoccupied with a fixed idea of what a game should be like.” Iwata acknowledged that the gaming industry is changing fast and new developments like smartphones are rising.

We should abandon old assumptions about our businesses.

Analysts are of the opinion that Iwata’s strategy might not be enough to bring back Nintendo from the steep plunge, but this is definitely down to individual opinions and it remains to be seen how far does the gaming company go under Iwata’s leadership.

Earlier Iwata also indicated towards a possible health care sector move, but refrained from giving out details. Top executives over at the company also opted for pay-cuts following sluggish Wii U sales.