Shareholder urges company to take the mobile space more seriously
Nintendo may be entering into the mobile games space. The famed developer has said in the past that it has little to no interest in developing an publishing games for mobile devices. These games may be exactly what the company needs to remain relevant with consumers and generate more revenue, however. One of Nintendo’s most prominent shareholders, Seth Fischer, is now urging the developer to set its sights on mobile gaming in order to take advantage of the popularity that exists within that sector.
Mobile gaming continues to be quite lucrative for the game industry as a whole
Mobile games have become one of the most lucrative aspects of the game industry. Consumers are becoming more reliant on their mobile devices, which also means that they are using these devices for the sake of entertainment more regularly. Mobile games have become one of the most popular entertainment sources among consumers with smartphones and tablets. These consumers have also shown that they are willing to spend money on these games regularly. As consumers become more mobile, Nintendo may risk losing its relevance with new and future generations of consumers if it does not accommodate their interests.
Nintendo has an aversion to mobile gaming
Nintendo President Satoru Iwata notes that any short-term gain the company would receive from releasing its franchises on mobile devices would not be worth the development effort. Iwata does acknowledge, however, that Nintendo’s most beloved franchises do not need to be brought over to mobile devices. Instead, the developer could produce new titles that would be ideal for mobile devices while retaining the pedigree of its longstanding franchises.
Company may lose relevance with consumers as they become more mobile
Mobile games have become a popular pastime throughout the world. In Japan, consumers are spending hours upon hours playing these games and many are spending large sums of money on these games as well. If Nintendo continues to ignore the mobile space, the developer may end up facing an uncertain future, especially as its competitors begin to become more involved in the mobile world.
Mobile games have caused a shift in the game industry
The game industry is beginning to shift and that has one of the largest game publishers in the world somewhat worried. Activision, which is second only to Nintendo in terms of revenue, has taken note of the stunning rise of mobile games. These games have proven to be rampantly popular with consumers of all ages and have become a very lucrative sector for the game industry as a whole. Normally, this would not be a problem as more people playing games could be considered a boon for the industry. What has Activision worried, however, is that mobile games may soon cut into the console market.
Activision foresees turbulence ahead
Activision CEO Bobby Kotick has been expressing his concerns regarding the console market recently. Consoles are currently trapped in a state of limbo, lingering between old technologies and the emergence of next generation consoles that have yet to hit the market. The current console generation has been successful for the game industry, but many believe that it has lingered too long, creating stagnation in the market and causing consumer interest to evaporate. This problem is being exacerbated by mobile games.
Mobile games expected to cut into console market share
According to Kotick, mobile games are beginning to become a serious issue for the console market. iPhones and Android devices are becoming much more popular and available to consumers. These devices are often used to play games and most of these games can be acquired for free or at a very low price, unlike console titles that typically cost $50 or more. Because of the price and convenience associated with mobile games, Kotick believes that more gamers may soon be inclined to play on mobile devices rather than actual consoles, especially as next generation consoles are expected to come at a high cost to the consumer.
Nintendo takes note of popularity of mobile games as well
Kotick has been using Nintendo’s Wii U as an example of the turbulence next generation consoles are likely to see. The Wii U is the first of this new generation, but has performed poorly in the global market. Nintendo recently acknowledged the lackluster performance of the Wii U and has been considering a foray into bring mobile games to the console in order to make it more appealing to modern gamers around the world.
