Iwata: Launching First Not Important, Return to Profitability

by playstationiso on July 20, 2012

Nintendo president Satoru Iwata speaking with Gamasutra has gone on to state that being first to the market isn’t important. He also believes that Nintendo will return to profit after its first reported loss.

“Being first in the next generation race is not important at all,” said Iwata. “One of the reasons we believe this is the time for Nintendo to launch the Wii U is it’s going to be important for the world.”

“Our intention is to return to profitability after just one year of losing money,” Iwata added. “I just cannot say that it’s a good thing for Nintendo at all to record an annual loss for two or more years in a row. … The past year is due to the 3DS hardware sales. We were selling hardware below the cost, so this year we are already recovering and improving the profitability of the 3DS.”

Iwata made clear that Nintendo has learned that price at launch is key. The 3DS was clearly launched at too high a price in the current market and sales suffered. While the 3DS since the price cut is still losing money Iwata said that will change in the near future.

“The pricing of Wii U is going to be one of the most important elements when it is going to be launched,” said Iwata. “The environment is different. Wii U is going to be launching in a different environment than when the Wii was launched. Also, the involvement surrounding [mobile and social] businesses is different than several years ago.”

Iwata was asked how he feels about all the doom and gloom surrounding the Wii U. He made it clear that people were saying the same thing about the Wii, that the Xbox 360 and PlayStation 3 are more powerful machines. He says that Nintendo is trying to capture a different market of gamers than the Microsoft and Sony.

“Even when we were going to launch the Wii system, there were a lot of voices saying ‘Nintendo should stop making hardware’,” said Iwata. “The reasoning behind that was Nintendo would not have any chance against Microsoft and Sony. The fact of the matter was: I did not think Nintendo should compete against these companies with the same message and same entertainment options for people.”

“We have not changed our strategy,” Iwata added. “In other words, we just do not care what kind of ‘more beef’ console Microsoft and Sony might produce in 2013. Our focus is on how we can make our new console different than [others].”

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