Nintendo doesn't need to cut jobs for profitability, says Iwata

President Satoru Iwata says Mario maker has potential to grow, despite recent performance; "We do not see a dark future for Nintendo."

It may be tough going at the moment, but Nintendo believes a brighter future is on the horizon. During a Q&A session following the company's recent second quarter financial report, president Satoru Iwata said Nintendo is not planning any cost-cutting measures to boost profitability.

"If you believe that there is no possibility of Nintendo's results improving, then you would be right about it being necessary to review the structure of the workforce and the company itself to match the scale of the business," Iwata said. "However, I believe that there are upward and downward swings in the video game business, that Nintendo has the potential to be a larger-scale business, and that in order to achieve that potential, good developers, localization capability, and the ability to sell overseas are necessary."

Though Nintendo has added hundreds of positions over the span of a half-decade while at the same time sales have fallen, cutting jobs is not the right way to drive long-term profitability, Iwata said.

"We need a company with a lot of muscle, but a company that also has no excess fat--one that makes smart spending decisions," Iwata said. "Restructuring the workforce is not the first option we consider even when cost-cutting is required. I would like you to understand that this is because we do not see a dark future for Nintendo."

The Wii U, which has underperformed so far with 3.91 million units sold to date, continues to have a negative impact on Nintendo's profits, the company announced last week. Nintendo will release a number of marquee first-party titles in the coming months, including Super Mario 3D World (November 22) and Donkey Kong Country: Tropical Freeze (December 6), as well as Mario Kart 8 and Super Smash Bros. in 2014.

Written By

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.

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Discussion

233 comments
Warlord_Irochi
Warlord_Irochi

"We do not see a dark future for Nintendo."

Of course they don't; they are unable to see a dark present of only 500k Wii-U sold worldwide anyway...

Warlord_Irochi
Warlord_Irochi

Is that why you fired 200 workers in Frankfurt's office last year?. Oh wait! those were "outsourced", technically not even Nintendo guys... so when you kicked them out you were not kicking your own people.

Well played Iwata, (you liar)

Ben Colvin
Ben Colvin

That's right. A "dark" future is improbable due to the fact that it is completely irrelevant. A bankrupt future is more likely.

Anthony Evans
Anthony Evans

kind of bored with Mario now. He does the samething over and over

Glenn Faught
Glenn Faught

"we don't see a dark future for Nintendo" Haha I don't see a future for Nintendo. At least not in the home console market. Third party is all but dead and their first party pumps out the same boring IPs over and over again. One can only play so much Mario before one gets bored off his ass with it. Even though Nintendo completely sucks ass in the console market, I still want to pick up a 3DS XL.

Vito Cafarelli
Vito Cafarelli

Its crazy how the best 3 systems of all time are Nintendo /super Nintendo/N64 ... and the worst 3 systems of all time are the gamecube/Wii/Wii U

Cozm1kaos
Cozm1kaos

I believe Nintendo will have a brighter future for 2014. Smash bros, Mario Kart, I have a feeling the new Zelda might get a release date for 2014 and a new IP announcement on E3.

Redsyrup
Redsyrup

Pikmin 3 was a good start. Bring on F-Zero, Wave Race, Mario Golf, Metroid and Pilot Wings!

David Jarvis
David Jarvis

Without Nintendo, the Playstation and X-Box wouldn't even exist

Megavideogamer
Megavideogamer

Nintendo had best be putting those people to work making games for Wii U. 2014 is the year for Iwata and crew to attempt to turn the Wii U fortunes around. Getting the games coming in 2014 is important. So you kinda need staff to do that. Plus more advertising of the Wii U could not hurt? a piss poor job of advertising the Wii U this far.

Jeffrey Miller
Jeffrey Miller

Yeah and there handhelds are only still viable because they have 3D. Still Handhelds can only help Console for so long... You are right though that Handheld may hasten it, but the end is still nigh - "Genius" :-)

Jeremy Sipes
Jeremy Sipes

Do some research on their hand held markets genius. Their hand helds pretty much support the consoles not the other way around. Its been that way since for over a decade.

Snakepond1
Snakepond1

Glad to see they are not laying people off, but for the love of god invest in some new game franchises. Spend some of that Wii money. Nintendo is seating on a mountain of cash. Spend it.

Jon Davis
Jon Davis

Nintendo has already gave up on their consoles. They just have the handheld market...for now. Until mobile phone gaming takes it away.

Vito Cafarelli
Vito Cafarelli

Its going to happen if Nintendo keeps doing what its doing. Its on a serious decline in every category.

Josh Beebe
Josh Beebe

Lol anyone who thinks Nintendo is doomed or will be only a software developer in a few years needs to share the drugs they're on with everyone so we can see just how delusional they really are. Not going to happen.

schu
schu

I think it will get a nice boost this holiday season because of the bundle, but I don't know if it will be enough momentum moving forward..

Gabriel Maldonado
Gabriel Maldonado

"We do not see a dark future for Nintendo." ...Clearly, they have not seen the light in years.

DoogyDonDoogy
DoogyDonDoogy

So it's sold what roughly 500,000 more units since the release of some of "marquee" titles and since it's sale numbers were last reported? It'll be interesting to see how many more systems they sell in the coming months. 

Jacob Leyva
Jacob Leyva

They really didn't help as much as you think.

Chris Hardin
Chris Hardin

Screw microsoft and their terrible ideas. I wouldn't even consider buying a crapbox one after what they tried to pull with it.

Chris Hardin
Chris Hardin

Nintendo, die? Never. I still love me some NES, SNES, or N64. Some of the best games are on older consoles. I'd rather play them than half of the games that come out these days.

gregrout
gregrout

When the Wii outsold Xbox and PS3, Sony survived it despite a terrible start. I don't see Nintendo collapsing or failing here. So they might not be the top selling console this time, so what? All it could take is a Mario Kart or Super Smash Brothers to get the ball rolling again.  

Raymond Jenkins
Raymond Jenkins

They've always known what's best for their community, but why aren't they doing it? Where is that killer Zelda or Metroid title that makes everybody sit up and take notice? I think they overestimated the attractiveness of the controller/handheld thing. It's cool, yeah, but a system seller it is not. Come to think of it, the big N has been making the fans wait for good stuff for a couple of generations now. Weird strategy...

Takeno456
Takeno456

Nintendo will not die. A lot of this talk is part hype, part hatred and part ignorance. Nintendo is not doing amazing but they are not dying. They have largely failed to market the Wii U properly and secure solid 3rd party support. However this does not mean they are dying. The 3DS is doing amazing. Nintendo is losing money only on the Wii U at the moment. Give it time, I believe things will turn around for the company. Whether that means the Wii U will get better or something else will arrive to take its place I cannot say but I will say that the Big N still has a lot of fight (and capital) left in them.

Cirno Yousei
Cirno Yousei

Even if Nintendo went software only, they won't exactly go the way of Sega. I'd like to think that they know what's best for their community, and i'd go as far as to say that if the fans themselves want to remake Ocarina of Time, Nintendo will likely approach whoever's responsible for such a remake for a publishing deal.

Mike Mcdonough
Mike Mcdonough

lol just like people pay 60 for cod every year with no changes , ya i think you guys who say nintendo is doomed are dumb it would take more then one major flop aka virtualboy not wiiu level , , to put nintnedo under ,

Raymond Jenkins
Raymond Jenkins

this is nothing like the Dreamcast situation. Sega started it's true decline with the Saturn. They launched the Dreamcast early to keep themselves in the game and then wisely made the transfer to software.

theKSMM
theKSMM

I remember how Reggie fils Aime was turning up everywhere beaming at this point in the Wii's lifecycle.  I don't see him so much anymore, and when I do see him now, he looks a lot more somber.

Brandon MacDougall
Brandon MacDougall

THEY ARENT GOING TO DIE, stop listenign to people that don't know crap. They are only failing with the wii U, but EVERYTHIGN else they are making profit, Nintendo is nowhere near failing.

Jeffrey Miller
Jeffrey Miller

lol, no i'm not. Dreamcast made money for a few quarters too. Like I said when PS4 and X-Box 1 come out though, NINtendo will lose a huge amount of market share. They may release another console, but that's it. Within a few years NINtendo will be a software developer like Sega. I don't have anything personal against these systems but they just aren't the companies they used to be - sorry to be the one to tell you :-/

Brandon MacDougall
Brandon MacDougall

Extra controller that you don't need tobuy when you probably already have 4+ wiimotes. Plus the wii u bundle comes with an epic game Super mario U For $300 that is sick. So yeah non-sense.

Adrian Taylor Mills
Adrian Taylor Mills

And isn't Battletoads a Rare IP? That would make it microsoft's property. You should complain to them.

Vito Cafarelli
Vito Cafarelli

stop supporting Nintendos high prices for there very cheap systems and games

Brandon MacDougall
Brandon MacDougall

Going the way of sega? You are only looking at the bad, wii U at just about everything else nintendo is making profits in, they are nowhere near to going to the ways of sega.

Brandon MacDougall
Brandon MacDougall

I'd pay $60 for a mario game anyday whether I be 13 or 24, My dad would have easily bought it for me.

the_repo_man6754
the_repo_man6754

It's fucking funny: When Capcom Actvision or EA lays off employees they're a piece of shit, but when NIntendo refuses, they fucking dumb. 

Oh the gaming community, don't you love how they believe that retarded trolling makes them smart? 

Cyrus Silverblade
Cyrus Silverblade

Most games can be played with a regular controller (the one that looks like a 360 controller). Everyone seems to ignore the fact that devs for other consoles now have all these gimmicky elements to be used with iPads.

Pierre-Luc Rancourt
Pierre-Luc Rancourt

The problem I see with Nintendo is : they create awesome ideas but are often ahead of time so the controler with a screen will probably be something important for the PS5 ... like Sony will use the Vita as a controler for the PS4 in some games ... which is something Nintendo did with the Cube/Gameboy SP!!! and since the N64 they kinda marketed themselves as very childish console.

the_repo_man6754
the_repo_man6754

@Orlando Oropeza Speaking of sweet bitter denial, how's being a member of Facebook been treating you? 

orangeroblin
orangeroblin

@Orlando Oropeza You realize Nintendo is worth billions right? I don't think they are even sweating yet.