Nintendo considering mergers and acquisitions

satoru-iwata

Nintendo’s Satoru Iwata has signalled that the company “should abandon old assumptions” about their business, and are considering mergers and acquisitions to rejuvenate their position as a dedicated hardware manufacturer.

After they revised their financial forecast, some called for Nintendo to use their cash reserves to invest in third-party companies such as SEGA, Capcom, or the emerging virtual reality technology from Oculus Rift.

“We’ll change the way we sell products, by managing customer information via the Internet,” Iwata explained to Nikkei in response to a question about Nintendo’s future strategies.

“We’ll offer discounts to steady, regular customers. We’ll cultivate emerging markets and launch new businesses in health and other areas. In an emerging country, you can expand the user base only after you offer a product line different from advanced economies in pricing.

“We should abandon old assumptions about our businesses. We are considering M&As as an option. For this reason, we’ll step up share buybacks.”

As to what these acquisitions would be is anyone’s guess at this point in time, but Nintendo most recently acquired Monolith Soft, who are currently working on X for Wii U.

Written by
After starting out with a Yellow Game Boy and a copy of Donkey Kong Land, Alex once hid in his room to play The Legend of Zelda: Ocarina of Time one Christmas. Now he shares his thoughts on Nintendo Insider, keeping track of everything to do with Nintendo.

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