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In order to rectify it’s unsatisfied predicament which they are now expected be operating loss. Much concern has been boiling in back of the minds of gaming industry as to what the future may be for Nintendo. Operating at a loss isn’t the most healthy situation for any company and drastic changes are needed to get the gaming giant back from its unfortunate situation.
Iwata also is aware that even though Nintendo has “preoccupied with a fixed idea what a game should be like. [Nintendo is aware] that the game industry is at a turning point amid new development like the rise of the smartphones”
When asked what kind of strategies Nintendo had in mind:
“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.
President of Nintendo, Satoru Iwata, explained that:
“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.”
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.”