Nintendo announced Thursday that it is planning to offer a new product that will go beyond traditional gaming, but will focus more on health. Despite the pay cut for CEO Satoru Iwata due to an undesirable earnings report, this recent announcement was for investors and the media.
Iwata explained that the company is attempting to establish a new business platform that will leverage their strengths, but independent from the video game platform. They decided to redefine entertainment as something that will promote better quality of life the fun way. This is Nintendo?s way of moving forward to expand the company?s business areas.
Focusing on Non-Wearable Technology
People have known Nintendo for its gaming consoles. With their new strategy, the company aims to focus on a non ? wearable technology that uses an integrated hardware and software platform business. Iwata added that this will be the company?s move instead of vying for a competitive spot in the overly crowded wearable technology or mobile app arenas.
A part of the company?s motive is to provide preventive measures to help people monitor their health by offering appropriate propositions, Iwata said. He believes that the Nintendo?s image as an entertainment company will keep its consumers entertained and engaged in the process.
The company will give more details on the project within the year. The new platform business will be launched at the start of the fiscal year on April 2015.
New Business Platforms
The Wii gaming device has struggled since it was released, contributing to Nintendo?s unsatisfactory earnings in the recent quarters. This is why the company is expected to try something new.
Most people are betting that the company would adapt its games into mobile apps. However, Iwata already said that they will be using a different strategy this time. He added that the new platform will remain as the company?s core business.
Known for Innovative Alternate Strategies
It is now clear that Nintendo is heading to a new direction with exercise and nutrition as the main focus for their new product. Senior analyst in Jon Peddie Research Ted Pollak told TechNewsWorld that it could possibly be a smartphone app. He added that it is not wearable, but goes with the user.