Nintendo looking at new business structure, Iwata not resigning By Zoe HawkinsPosted on January 20, 20142 min read78 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr You know how Gavin said that Microsoft threw away their advantage gained from Xbox 360? Well, Nintendo has done far worse – after the massive success of the Wii, the Wii U has been a major flop. Now, Nintendo needs to re-evaluate their business.Nintendo slashed sales expectation for the Wii U, going from a forecast of 9 to 2.8 million units. Wow, that had to hurt. In fact, instead of the advised ¥100B ($9.6 million / R104.5 million) profit, Nintendo has advised investors that it expects to see an operating loss of ¥35B ($33.6 million / R3 64.9 million). Wow, that’s a huge difference. It’s no wonder that Nintendo had to negate rumors that Satoru Iwata would resign:There will be no major management shake-up in the short term Iwata should be glad he isn’t working for a Chinese or North Korean organization that would demand more than just his resignation. However, Nintendo does need to change what they’re doing – and they know it. They are considering a new business structure as they “cannot continue a business without winning”:We must take a skeptical approach whether we can still simply make game players, offer them in the same way as in the past for 20,000 yen or 30,000 yen, and sell titles for a couple of thousand yen each […] Given the expansion of smart devices, we are naturally studying how smart devices can be used to grow the game-player business. It’s not as simple as enabling Mario to move on a smartphone.Things have not been going well for the Wii U – sales turned up towards the end of the year, but still not nearly enough to restore faith in the floundering console. People have been foretelling Nintendo’s demise since the N64; are we seeing the end of Nintendo’s console business, or will this just be yet another bump in the road? I still believe the gaming industry needs Nintendo – it caters to a specific audience and helps bridge the gap between new/casual and hardcore gamers. Plus, some of the games they produce are truly fantastic – just look at Wii U’s Pikmin and Mario offerings. I hope Nintendo finds a way through this that doesn’t see them relegated to pure software developers, especially if that software ends up only being on mobile devices.