Topic: A Post-"Please Understand" Company: Nintendo After Mr. Iwata's Passing

[Enner]

After the tears, farewells, and remembrances comes the future. This thread is for discussion of where Mr. Iwata has left Nintendo as a company at the end of his tenure and to speculate on moves in the immediate and distant future.


A summary:

• The Nintendo 3DS, released on February 26, 2011 in Japan, has sold 52.06 million hardware units and 225.66 million pieces of software (as of March 31, 2015).
• The Nintendo Wii U, released on November 18, 2012 in North America, has sold 9.54 million hardware units and 56.68 pieces of software (as of March 31, 2015).
• The next dedicated video game hardware platform, code named NX, is currently in development and promises "a brand new concept."
• Nintendo has partnered with DeNA to develop an improved network service and applications for smart devices.
• Nintendo has partnered with Universal Studios theme parks group to develop attractions based on Nintendo characters.
• There are no announcements on who will permanently step in to the role of president of Nintendo Co. Ltd.
• EDIT: The Quality-of Life initiative has been active for some time, but has yet to show its first product.

Hopefully, I didn't mess up too badly.


Nintendo is in a transitional period as the 3DS and Wii U wind down and the NX starts revving up. Multiple deals and partnerships are in place to expand Nintendo's reach outside of it usual hardware and software.


The question I find myself dwelling on is who will be the next president of Nintendo Co. Ltd. It is almost guaranteed that Nintendo will promote from within. However, lets have our heads in the clouds and think how wild it would be if Nintendo hires a person from outside of the company and possibly of non-Japanese nationality.


Nintendo has always been an interesting video game company to follow, but this is the most dynamic position for the company yet.


EDIT: I forgot to add, don't feel pressured to think about these things immediately! My desire was to create a thread to separate calculating criticism of Mr. Iwata's tenure at Nintendo in to a relevant and forward-looking discussion. I wanted this thread to be here once the tears have dried. Or for those that deal with grief by going straight back to work or a hobby.

[Adrock]

Like you said, Nintendo will most likely promote from within. There's a small chance it hires from outside of Nintendo but a literally zero percent chance it hires someone who is not Japanese. Due to Iwata's health concerns, Nintendo, like Apple toward the end of Steve Jobs' tenure, most likely already had a contingency plan in place. Iwata's successor is probably on the board of directors though I'm sure many of us aren't overly familiar with who some of those people are. Granted, we can google it, and I have, but I have no idea who Hirokazu Shinshi is for example. According to Bloomberg, he's currently the youngest member on the board at 49.

Still, with someone already in line to succeed Iwata, I can't imagine any sweeping changes which is bound to disappoint some here at NWR who called for Iwata to be fired over the years. Nintendo has a pretty strong and set company culture so the next person in line is going to tow the line. It's business as usual. Anyone who wants major changes, the best you can hope for is Iwata's successor being a little more lax on things like voice chat and region locking (though Iwata recently considered ending region locking). Any changes will have to start small then grow from there so, you know, manage your expectations.

[broodwars]

Understandably, I'm not well-versed on Japanese corporate law, but since Iwata didn't name a successor, doesn't this mean that the next head of Nintendo would have to be picked by a special election from the stockholders (much like how Iwata recently "won re-election" to maintain his job)? If so, the next head of Nintendo could push for more sweeping changes than you'd think, having been picked by stockholders fed up with years of tradition, but we'll see.

In any case, as I've stated elsewhere Iwata's left Nintendo in an interesting situation for whoever picks up the torch: the company's not as bad off as it was a year ago in some respects thanks to Amiibo sales, but the Wii U is still practically a dead platform and 3DS is starting to slip in that direction as well. Nintendo right now is probably the most irrelevant in the general gaming landscape than it's ever been before, but NX; mobile support; and franchise licensing are coming.  As Reggie noted in the E3 Direct, it's a time of transformation for the company. Iwata's death could be the perfect time to wipe the board clean and start fresh with new leadership that can steer the company in a new direction, but as has been noted Nintendo is an extremely traditional; stubborn; and incestual company so I can't say it's likely that they'll choose a radical new leader.

Personally, whoever takes over Nintendo needs to be young and have little to no ties to the old Yamauchi-era guard. Nintendo's a company in desperate need of new ideas, driven by a bold and charismatic person who is more open-minded towards embracing the West and 3rd parties. If that means hiring outside the company, so be it. When Disney was on the verge of bankruptcy in the 1980s after decades of "What Would Walt have done?", the company was saved in the 11th hour by the hiring of Michael Eisner, a ruthless but charismatic businessman from outside the company who didn't give a **** about "What Would Walt have done?" but knew exactly how to leverage Disney's catalog while pushing towards the future. Frankly, Nintendo needs someone like Michael Eisner to right the ship with new ideas and a fresh perspective, even if it means hiring outside the company.

[Adrock]

If the shareholders reelected Iwata, wouldn't it follow that they would elect a successor with similar ideals as him? Not saying that it's a given, but it just seems like Iwata could have been ousted if people were really that disappointed and appalled by his performance.

I have doubts that Nintendo's board will be wiped clean. Shigeru Miyamoto, for example, sits on Nintendo's board of directors. Does anyone really believe he's getting kicked to the curb?

[broodwars]

I have doubts that Nintendo's board will be wiped clean. Shigeru Miyamoto, for example, sits on Nintendo's board of directors. Does anyone really believe he's getting kicked to the curb?

I meant that in the metaphorical sense of "wiping the game board and starting over", not ACTUALLY removing the Board of Directors.

[ThePerm]

Hideo Kojima recently became free.

[broodwars]

Hideo Kojima recently became free.

I doubt Nintendo would want a guy whose projects hemmorage money to be its CEO.

[Evan_B]

I don't want Nintendo to embrace the west. Maybe third party gaming, but not the west. What they do differently is exactly what I love about them, and while embracing the west COULD be a positive change, it's not likely, considering our industry isn't doing much better.

[sudoshuff]

I've been debating with myself about Miyamoto taking over.  On the pro side, Miyamoto would be a unifying figure that most hard core Nintendo fans would rally behind (with an obvious record of accomplishments).  I'm not convinced he has enough business prowess to handle the job, but I've been impressed lately with some of his answers to interview questions regarding the failure of the Wii U.  He seems to have a grasp on what went wrong and what needs to be done to fix it.  Also, there was the internal story that came out where he basically forced Nintendo to ship the New 3DS with super stable 3D at the last minute because "there'd be no point in releasing it without that feature".  While the New 3DS still hasn't been justifiable for most, I think we can agree it would be completely useless without the stable 3D.  So, I guess I'm hoping for Miyamoto to take over.

[lolmonade]

Three things I'm sure of:

1). The new CEO will be Japanese (Sorry Reggie)

2). It will be a promotion from within the organization.

3).  Miyamoto will not be chosen as the successor.

[Adrock]

I recall a few years ago that Miyamoto saying he wanted to scale back his responsibilities and work on smaller games. I can't see him succeeding Iwata either. That doesn't seem like it's up his alley.

[Fatty The Hutt]

I could see Miyamoto taking over. He has already been announced as half of the interim leadership. Plus, his answers to Nintendo questions often relect thinking at the corporate level, not just focussed on a particular game. He is also famous for not being afraid to make radical decisions (upending tea-tables) if it means improvement in quality and saleability. That said, I would also not at all be surprised to learn that Miyamoto was not the successor. He may not want it. I wonder if they will offer it to him anyway out of a sense of honour and respect, knowing he will refuse? He's been one of the key faces of Nintendo for so long.

I wonder also if Reggie will survive the transition? Iwata proclaimed himself CEO of NoA a few years back. Will that continue or will NoA become more independent again? Was Reggie being protected or propped up by Iwata? I have no evidence to suggest this but corporate wide shake-ups can occur when a leader goes.

[sudoshuff]

I recall a few years ago that Miyamoto saying he wanted to scale back his responsibilities and work on smaller games. I can't see him succeeding Iwata either. That doesn't seem like it's up his alley.

Agreed, but I could see him in the "interim CEO position" until NX launches.  Nintendo needs to quickly make a decision to show shareholders that they have things under control for the time being.  I think Miyamoto is a safe choice given that he is a) extremely popular and likable and b) basically going to follow through with Iwata's original plans.

[Soren]

Enner: you forgot the Quality of Life tech stuff in your summary.

[Ian Sane]

The timing of this in regards to Nintendo's mobile plans is really bad.  I criticized Iwata but I trusted him in regards to mobile that Nintendo wouldn't jump in with both feet and transform their whole output into mobile trash like so many other Japanese game companies.  Iwata's careful approach to mobile gaming never got a chance to establish itself so his successor might go in a direction we don't want.

If I was cool with the status quo I would be fine with Miyamoto but I see him as an amazing game designer and pretty lousy executive.  I haven't liked Nintendo's direction as much as he has taken on a more supervisory role.  Plus I believe he was a big part of the idiotic decision to go with cartridges on the N64.  He's the sort of guy I want making the game for my console but I sure as hell don't want him designing the console itself.  He tends to have his own approach to making games but can't conceptualize how others do it.  So he'll dictate hardware that works for JUST him and steer games under his supervision in questionable directions if it is not his type of game.

He does however seem in-sync with Iwata so if Nintendo wants a temp CEO to continue on Iwata's vision for the NX then he's not a bad choice to fill in for a few years.  With a new console presumably on the horizon this isn't the sort of timeframe where a company would choose to replace their CEO.

[Evan_B]

I can't imagine Miyamoto's decisions making all that much of a difference this late into the development of the NX, then again, he did push for super stable 3D but that was necessary.

[lolmonade]

I could see Miyamoto taking over. He has already been announced as half of the interim leadership. Plus, his answers to Nintendo questions often relect thinking at the corporate level, not just focussed on a particular game. He is also famous for not being afraid to make radical decisions (upending tea-tables) if it means improvement in quality and saleability. That said, I would also not at all be surprised to learn that Miyamoto was not the successor. He may not want it. I wonder if they will offer it to him anyway out of a sense of honour and respect, knowing he will refuse? He's been one of the key faces of Nintendo for so long.

I wonder also if Reggie will survive the transition? Iwata proclaimed himself CEO of NoA a few years back. Will that continue or will NoA become more independent again? Was Reggie being protected or propped up by Iwata? I have no evidence to suggest this but corporate wide shake-ups can occur when a leader goes.

Even if he had the right mindset to continue fostering Nintendo's corporate culture, I have my doubts he'd be interested.  The man is 62 years old, not far from the age where most decide to retire.  With all the articles over the past several years that rumored Miyamoto trying to pass on his knowledge to subordinates before he decides to hang them up, I find it a bit pie in the sky to think he'd then take over as CEO.
 
Iwata comparably was 55 years old at the time he passed, having filled the role of CEO for 12-13 years prior to his death.  I'd guess that whomever they choose to steer the ship, they'd want someone who'll be there for a substantive amount of time.  Just don't see that happening with Miyamoto. 
 
So....whose at Nintendo that is A) under 50 years old, and B) would seem like a good Steward of S.S. Nintendo?

[ThePerm]

The head of Dena? What happens when a young entrepreneuer suddenly gets a fortune 500 company?



it falls in line with how Iwata was picked by Yamauchi. Its a far shot though.

[Louieturkey]

The relationship is too young.  DeNA has yet to prove anything.  That'd be a ginormous show of confidence for someone who has shown nothing (at least publicly). 

As was stated, the oldest board member for Nintendo is 49 years old so if they are hiring from within, they had to go with a lead game designer.  Would Aonuma be a good replacement?

[ThePerm]

Aonuma would be good. He is used to handling a lot of people.

[Shaymin]

Hideo Kojima recently became free.

Since when did Nintendo become an anime company?

[ShyGuy]

I would like to see someone from a game development background. Sakurai? Anuma? Satoru Shibata?

[broodwars]

If the shareholders reelected Iwata, wouldn't it follow that they would elect a successor with similar ideals as him? Not saying that it's a given, but it just seems like Iwata could have been ousted if people were really that disappointed and appalled by his performance.

I meant to address this earlier, but the re-election really isn't all that unusual. As much as people disliked Eisner towards the end of his reign with Disney, stockholders still kept him in power as CEO even after Roy Disney Jr.'s "Save Disney" campaign removed him as Chairman of the Board. I get the feeling it's a "devil you know vs. devil you don't" situation, so no matter how badly things got Iwata was probably never going to be removed. However, with no successor in the wings I could see the shareholders pushing for someone a little less traditional than Iwata. ****, these are the same people who wasted a stockholder question on a baseball retirement number. It could really go either way.

As for the idea of Miyamoto as CEO, honestly I never got the impression that Iwata was happy as CEO (he always looked uncomfortable and awkward in that fancy suit speaking in an official capacity) and I doubt Miyamoto would be happy as one either. Just from the way his projects have been described afterwards, he sounds like someone who's quite happy just being the guy who works on his toys in the back and occasionally trots out on stage with a sword. He would probably take an interim position just to keep things moving, but he'd probably be eager to be rid of the job as soon as an official successor was found.

[Enner]

Something to consider: I've read some comments that speculate that Mr. Iwata was diagnosed with Bile Duct (Cholangiocarcinoma) Cancer. That's probably the case given what happened.

If Mr. Iwata was diagnosed with this as early as last year, it is possible that he and Nintendo Co. Ltd. already have a contingency plan in place.

[lolmonade]

Something to consider: I've read some comments that speculate that Mr. Iwata was diagnosed with Bile Duct (Cholangiocarcinoma) Cancer. That's probably the case given what happened.

If Mr. Iwata was diagnosed with this as early as last year, it is possible that he and Nintendo Co. Ltd. already have a contingency plan in place.

I'm sure they have a short list of candidates, but as someone who works in a large corporate structure, I'd be shocked if they already had a specific successor planned.