With the company not doing as well as expected, what’s the future for Nintendo? Obviously they will not be releasing games onto mobile, as the company’s president, Satoru Iwata, has so emphatically claimed. However what Iwata did reveal was that the company did have plans for a new product that would be health-related. That being said Nintendo’s history is more about gaming so what would they know about health? Well perhaps they might acquire a company or merge with a company whose expertise is there.
Speaking to Nikkei, Iwata admitted that the company was now considering something they hadn’t really considered before, which was mergers and acquisitions, “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.” This would allow Nintendo to make use of its huge cash reserves which the company used as a cushion in the event that one of their gaming systems had failed, which was what happened with the Wii U.
It is unclear who Nintendo is considering at the moment, but according to Iwata, “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.”