I feel bad for Satoru Iwata. He so strongly believes that he’s right to maintain Nintendo’s exclusive hardware and software status quo, but doesn’t currently have the numbers to back it up. The latest in external pressure to the Nintendo President comes from Seth Fischer, a prominent Asian hedge fund manager and owner of ample shares in Nintendo. His message?
Nintendo needs to embrace this thematic change in consumer demand [for mobile games], behavior and expectations to stay relevant.
This is absolutely not a new sentiment, but when someone as powerful as Fischer speaks, you at least pretend to listen. It’s actually his company Oasis Capital Management that owns the Nintendo shares in question, and despite Big N’s insistence on its age-old strategies, Fischer is not so easily convinced. He further emphasized his doubt in a formal letter to Mr. Iwata.
It is readily apparent that the standard elasticity of demand principle no longer applies in the consumer entertainment market when access requires the purchase of a physical product.
“Readily apparent,” to me, is a bit of an arrogant choice of words. You’re telling a 30+ year industry veteran that something is “readily apparent” because you looked it up and down and decided as such? Regardless, Fischer is not alone in his beliefs, and it remains to be seen if Nintendo can turn the ship around before its defenses from outside influence come crumbling down.
Iwata has stated repeatedly that “the spread of smart devices does not spell the end of game consoles.” I just hope the gang in Kyoto (and Tokyo) can come up with results soon enough to prove it.
[Via: Reuters]
