Nintendo CEO Seen Missing Profit Target as Wii U Founders

[Asriel]

Funny how all that analysis ignores 3DS's increasing levels of success. With the system selling at a profit, software sales increasing, digital sales increasing, and Animal Crossing, Pokemon and Zelda debuting globally this year, surely that will do a world of good for Nintendo? Not to discount the possibility we'll also see 3D Mario, Mario Kart and Zelda on Wii U within the next financial year?

It's also funny how people continually ignore the fact that Iwata is a member of a board that run Nintendo, not some corporate dictator making every major decision at Nintendo. I still firmly believe Nintendo will be better off with Iwata than without him. Iwata might have made huge mistakes, but he has also had huge successes, and he's also committed the time, resources and money to 3DS to turn the system around and gain traction in the West, when many would have thrown in the towel all together. Conventional wisdom was that smartphones would sink 3DS and Iwata has ensured that has not happened. Would any other executive in Nintendo make the same commitment? Would an executive from outside Nintendo fight as hard?

There's also something else angry fans and investors are ignoring about the current situation. While it is of critical importance for Nintendo to deliver a consistent stream of content for their systems, it is even more important for Nintendo to maintain the quality and reputation of their software franchises and intellectual property. What would be more damaging? The Wii U failing, or the Mario brand being tarnished due to a rushed release? Nintendo will survive losing the Wii brand; it would truly be an existential disaster if they damaged one of their big software brands in a rushed attempt to revive sales. Would any other executive within Nintendo be willing to make this commitment? Would an executive from outside Nintendo understand that Nintendo's brands are the key to its survival as a platform holder?

Slow and steady, staying the course is frustrating for early adopters and it doesn't make up for the recent failings of Nintendo's management, but it is right now the only course Nintendo can take without risking the survival of the company. If Wii U fails, the Wii brand goes and it is a major setback, but Nintendo can go back to the drawing board and launch another system, as they were willing to do in the event that Wii or DS failed. If Mario fails, if Pokemon or Zelda or Donkey Kong fails, where will Nintendo turn then? Where will the recovery come from?

It's popular to kick a man in a difficult position, but Iwata is following the right course to correct some of Nintendo's mistakes and ensure the company survives. More needs to be done, but kicking out Iwata won't increase development resources or ensure that increased development capability is up to scratch. It won't improve third party relationships. It won't improve the situation with Wii U. Nintendo need an executive reshuffle globally, but perhaps it's some of the older hands who've been at the top since the N64 era, marketing executives running NOA, and game designers such as Miyamoto, who should be stepping back, rather than the CEO responsible for Nintendo's greatest successes, and the CEO who stood by 3DS rather than allowing it to fail completely.