By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Sales Discussion - Nintendo stock for 1.1 billions has been bought by ValueAct and want to make Nintendo as fully digital entertainment Service/ media company EDIT: Add Bloomberg article

Tagged games:

 

What do you think

This great news for investor 2 4.35%
 
This great news for Nintendo 5 10.87%
 
This bad news for gamer 25 54.35%
 
I don't know how to react to this 12 26.09%
 
Time to buy Nintendo stock 0 0%
 
Time to sell Nintendo stock 2 4.35%
 
Total:46

This is enough money to get them a seat at the table which can be important in itself.

The best case scenario is that they realize they are incompatible with Nintendo's vision and they sell off their shares at some point.  The worst case scenario is that Furukawa actually listens to them.  Nintendo's strength is not in digital or online anything.  Nintendo's strengths are 1) making games, 2) making hardware to specifically play games (like the Wii remote), and 3) local multiplayer.

I don't have a sense for Furukawa yet, but he has made mention of expanding into online and mobile gaming more, which is troubling.  But I won't really have a good sense about him until their next console is announced.  That is when we'll see the direction he really wants for the company.  He inherited the CEO position after the Switch already launched, so he is excuting someone else's vision at the moment (Iwata's).  But when we see the next system, then we'll know if any of this digital focus has taken hold.



Around the Network

Sounds like a whole lotta nothin. Lot of money dropped something that will just continue to their own thing.



the best big step Nintendo could take at the moment would be to create a Switch smartphone

wouldn't look too different on the outside, just an Android or whatever smartphone mode, with Google or Nintendo's digital services, music streaming etc...

imagine the sales and the exposure a real gaming smartphone could get, and I think it's the right timing too, smartphone technology is cheaper and is not moving fast at all the last few years, why carry two devices around



don't mind my username, that was more than 10 years ago, I'm a different person now, amazing how people change ^_^

This is *very* bad news. Activist investors are very focussed on making money, over the long term profitability of an organisation. The main purpose is to heavily cut costs to boost the balance sheet, and then take out very large loans, before returning money to the investors. Then they cash out and leave the company with greatly increased debt.

They will say a lot of things that "sound good", but the only purpose is to jack up the stock price.

It makes sense for a clothing or oil company, but is bad for people in an creative industry.



dark_gh0st_b0y said:
the best big step Nintendo could take at the moment would be to create a Switch smartphone

wouldn't look too different on the outside, just an Android or whatever smartphone mode, with Google or Nintendo's digital services, music streaming etc...

Would we be able to make phone calls with it without an additional device?



Around the Network
OneTime said:
This is *very* bad news. Activist investors are very focussed on making money, over the long term profitability of an organisation. The main purpose is to heavily cut costs to boost the balance sheet, and then take out very large loans, before returning money to the investors. Then they cash out and leave the company with greatly increased debt.

They will say a lot of things that "sound good", but the only purpose is to jack up the stock price.

It makes sense for a clothing or oil company, but is bad for people in an creative industry.

You will be relieved to know that is not the case here.  Check out more in this thread for details.



Massimus - "Trump already has democrat support."

RolStoppable said:
Cool story. They hold just over 2% of Nintendo's shares, so Nintendo is talking with them, but that's about it.

Besides, if their plans concern monetization similar to the likes of Activision and EA, then they'll be told to get lost quickly - in a polite manner because the Hiroshi Yamauchi days are a thing of the past. Such monetization models stand in strong conflict with Nintendo's long term strategy where consumer goodwill plays an essential part.

2% is nothing to force anything on Nintendo, you are rigth Rol.



34 years playing games.

 

Why not see it as potentially positive? Since how long we all rant about Nintendo is being old and stubborn, is not innovating structurally, is not moving forward fast enough with certain technologies and businesses (online service, smart phone business, anyone?)? Such an investor could really bring in new ideas/moving things forward. I personally think that Mr. Furukawa is very smart, he's of a younger generation and he knows all the (old) shortcomings of Nintendo. I truly think he wants that Nintendo becomes an overall better company, a newer company (but not a hipster company). He knows that changes can only come if he listen to outsiders that's why is willing to listen to ValueAct. I think it's smart.

Personally, I wish Nintendo would start an adult brand (of course they have to name it differently) for games with adult content. I know, Nintendo doesn't like blood, violence and war themes but there are so much more adult themes. I also know that Nintendo's current in-house developers neither have the desire nor the skill to make such games with great quality but Nintendo has so much money, they should buy studios or build up new ones from the ground up for the development of such adult games. For me it's just silly to have a situation that if you are an adult gamer you have no choice than to also buy a PlayStation, Xbox or a gaming PC. As much as you love Nintendo, certain content you can't have on it (or just in limited quantity and quality). Nintendo always comes with the excuse that their games appeal to everyone including (young) adults. Yes, Mario Kart, Smash and even Mario Party are great party games where even (young) adults can have great fun with friends but ultimately, Nintendo says to such people: "Thank you for buying Nintendo products but for you to become fully satisfied, we are sorry, but you have to buy a either a PlayStation, Xbox or gaming PC."



Fight-the-Streets said:
Why not see it as potentially positive? Since how long we all rant about Nintendo is being old and stubborn, is not innovating structurally, is not moving forward fast enough with certain technologies and businesses (online service, smart phone business, anyone?)? Such an investor could really bring in new ideas/moving things forward. I personally think that Mr. Furukawa is very smart, he's of a younger generation and he knows all the (old) shortcomings of Nintendo. I truly think he wants that Nintendo becomes an overall better company, a newer company (but not a hipster company). He knows that changes can only come if he listen to outsiders that's why is willing to listen to ValueAct. I think it's smart.

Personally, I wish Nintendo would start an adult brand (of course they have to name it differently) for games with adult content. I know, Nintendo doesn't like blood, violence and war themes but there are so much more adult themes. I also know that Nintendo's current in-house developers neither have the desire nor the skill to make such games with great quality but Nintendo has so much money, they should buy studios or build up new ones from the ground up for the development of such adult games. For me it's just silly to have a situation that if you are an adult gamer you have no choice than to also buy a PlayStation, Xbox or a gaming PC. As much as you love Nintendo, certain content you can't have on it (or just in limited quantity and quality). Nintendo always comes with the excuse that their games appeal to everyone including (young) adults. Yes, Mario Kart, Smash and even Mario Party are great party games where even (young) adults can have great fun with friends but ultimately, Nintendo says to such people: "Thank you for buying Nintendo products but for you to become fully satisfied, we are sorry, but you have to buy a either a PlayStation, Xbox or gaming PC."

LoL



34 years playing games.

 

Fight-the-Streets said:
Why not see it as potentially positive? Since how long we all rant about Nintendo is being old and stubborn, is not innovating structurally, is not moving forward fast enough with certain technologies and businesses (online service, smart phone business, anyone?)? Such an investor could really bring in new ideas/moving things forward. I personally think that Mr. Furukawa is very smart, he's of a younger generation and he knows all the (old) shortcomings of Nintendo. I truly think he wants that Nintendo becomes an overall better company, a newer company (but not a hipster company). He knows that changes can only come if he listen to outsiders that's why is willing to listen to ValueAct. I think it's smart.

Personally, I wish Nintendo would start an adult brand (of course they have to name it differently) for games with adult content. I know, Nintendo doesn't like blood, violence and war themes but there are so much more adult themes. I also know that Nintendo's current in-house developers neither have the desire nor the skill to make such games with great quality but Nintendo has so much money, they should buy studios or build up new ones from the ground up for the development of such adult games. For me it's just silly to have a situation that if you are an adult gamer you have no choice than to also buy a PlayStation, Xbox or a gaming PC. As much as you love Nintendo, certain content you can't have on it (or just in limited quantity and quality). Nintendo always comes with the excuse that their games appeal to everyone including (young) adults. Yes, Mario Kart, Smash and even Mario Party are great party games where even (young) adults can have great fun with friends but ultimately, Nintendo says to such people: "Thank you for buying Nintendo products but for you to become fully satisfied, we are sorry, but you have to buy a either a PlayStation, Xbox or gaming PC."

You may speak for yourself. 

It also sounds like you are woefully behind the times on Switch 3rd party support for your "blood, violence and war themes but there are so much more adult themes" content.



Massimus - "Trump already has democrat support."