“We Are Thinking About A New Business Structure,” Says Iwata

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Nintendo’s CEO Satoru Iwata has announced that the company needs to restructure its current business model, following a press conference in Osaka today. In light of Nintendo’s 2013-14 fiscal year cuts – which slashed the forecasted 9 million units down to 2.8 million units for the Wii U and 18 million units to 13.5 million units for the 3DS – Iwata has insisted that changes need to be made, though it’s not as simple “as enabling Mario to move on a smartphone”.

Iwata has said he would not resign in the wake of its third annual consecutive loss, drilling home the point that he would restore business momentum as soon as possible. Now, the CEO hopes to back up his claims by introducing a new business structure, studying smart devices and the industry’s trends, Bloomberg reports. He added that any reshuffles in management were not planned for the near future, though announcements in pay cuts – if any – would be shared after the investor’s meeting at the end of this month.

“We are thinking about a new business structure. 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.

“We cannot continue a business without winning. We must take a skeptical approach [on] 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.”

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