Nintendo Not Expected to Make Radical Changes Despite Poor Sales

Jan 20, 2014 09:32 AM EST | Matt Mercuro

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Nintendo Co. isn't expected to make drastic changes this year like allowing its games to be used on rival devices as a way to offset poor sales of its flagship system, the Wii U, according to Reuters.

Rivals Microsoft and Sony Corp. have reported strong sales numbers recently for its new devices, the Xbox One and PlayStation 4, but the "Donkey Kong" creator has been hesitant to allow its games to become available for non-Nintendo systems.

Some analyst feel that Nintendo could make more money if they released smartphone or tablet options of its games. Over 1 billion smartphones and tablets are currently being used around the world, according to Reuters.

While the company plans to release a new management strategy on Jan. 30, there are no other major plans set to be announced on that date.

"I think the company needs to see more failure before anything more radical is considered," said David Gibson, senior research analyst of games at Macquarie Securities in Tokyo, according to Reuters.

Nintendo reported on Jan. 17 that it now expects its third successive year of operating losses after previously predicting a profit of over 960 million before the end of the fiscal year.

Company CEO Satoru Iwata said last week that he doesn't believe that adding smartphone or tablet games would help the company as much as others believe.

"It's not something as simple as the spread of smart devices meaning that game machines won't sell," Iwata said. "If we offer something that is in line with the changes around us today, I think people will still need game machines."

Iwata said he won't be stepping down anytime soon and there won't be any management changes.

Most analysts have credited Wii U's poor sales to the fact that it is so similar to its predecessor.

Nintendo shares reached a record high in Nov. 2007, largely thanks to the success of the Wii console. The company's stock has lost over 80 percent since then.

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