Nintendo’s Future Plans

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Last Updated on December 16, 2019 by Danielle

Nintendo President Mr. Kimishima

Nintendo President Mr. Kimishima recently unveiled the company’s ambitious plans for the coming years.

Kimishima outlined plans on the next generation console, the evolution of Nintendo’s business model, and ambition plans to increase operating profits. In a recent interview with Time, he stated that he can remain Nintendo’s president more than one year if elected. The question remains whether Nintendo can reclaim its once dominant position in the interactive entertainment industry?

Nintendo NX / DeNA Partnership

First, the next Nintendo videogame console, codenamed NX, will be different from current gaming hardware. It will be a completely new idea and will not be a successor to the Wii or Wii U. They want to introduce new ideas to the gaming industry with a goal of surprising fans and propelling the industry forward. Also, he announced DeNA is collaborating with its development. Last year DeNA was announced in a partnership with Nintendo to introduce mobile games featuring characters from some of its most beloved franchises. It could be that DeNA contributes to the network infrastructure of the upcoming console.

Evolution of Nintendo’s Business Model

Kimishima is set to evolve Nintendo’s business model. Their upcoming gaming projects will help support this evolution. Nintendo’s first mobile game, Miitomo, is expected to be released in March. While games are at Nintendo’s core, there is a possibility for it to become an entertainment company.

Quadruple Growth in Operating Profits

Nintendo’s new President has an ambitious goal of increasing operating profits to $855 million on an annual basis (or 100 billion yen/year). To put it in perspective, that is a whopping four times the profit earned last year. Nintendo’s strategy is linked to leveraging its intellectual properties (characters) partly through smartphone apps. Nintendo also desires to appeal to its loyal fanbase. They also plan on licensing their characters in theme park attractions, films, and anime. Nintendo has a project in partnership with Universal Studios theme park. Increasing digital downloads and expanding add-on content sales is also important.

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