After the sizable slash on this fiscal year’s earnings forecasts announced yesterday, quite a few financial analysts are weighing on Nintendo’s troubles, expressing doubts on whether the management of Kyoto’s historical company is still in touch with the industry or not:
For instance, Architect Grand Design President Yoshihisa Toyosaki told the Wall Street Journal:
I hate to say this, but Nintendo is out of touch. It has a chance to change course, but I doubt it’s going to take it.
SMBC Nikko Securities Senior Analysts Eiji Maeda is possibly harsher in his judgement, as he explained to the Mainichi Shimbun:
The decline of dedicated game consoles is not the cause of Nintendo’s Trouble. The problem is that Nintendo can’t understand game fans.
Nintendo’s President Satoru Iwata himself admitted that he had some problems reading the market, especially overseas, during yesterday’s press conference.
In Japan, I can be my own antenna, but abroad, that doesn’t work.
That said, there are analysts that feel that Nintendo is cooking something up. Daiwa Securities analyst Satoshi Tanaka seems to think so, as he told the Wall Street Journal, while talking about the company reinforcing its capital spending by 15 billion yen:
It’s a show of how serious Nintendo is on whatever it has up its sleeve.
It’s hard not to see that Nintendo may have made a few mistakes in the past couple years, especially with the Wii U, but the fact that Satoru Iwata is holding on to the captain’s chair (at least for now) may very well indicate that he’s indeed preparing to unleash a surprise or two.
There have been rumors about at least a new platform in development in the secret labs deep under Kyoto’s ivory tower. Could it be the key to Nintendo’s comeback?