Nintendo Plummets in List of "Powerful" Japanese Companies

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Nintendo Plummets in List of "Powerful" Japanese Companies

satoru iwata

Namco Bandai and small companies such as Broccoli and Nihon Falcom were labeled as more powerful than Nintendo, which Toyo Keizai says has not grown.

Nintendo plummeted to 1,647th out of 2,000 Japanese companies ranked in Japan's business and economy magazine Toyo Keizai. Namco Bandai, Broccoli, Nihon Falcom, Capcom, and Tecmo Koei all improved their scores from last year, leaving traditional powerhouses like Nintendo tumbling to the near-bottom of the list this year.

Toyo Keizai ranks the top 2,000 corporations according to four parameters: growth, profitability, safety, and scale. Each of the four parameters are added together to get the highest score. The lowest score possible in a single parameter is 500 with 1,000 being the maximum. Namco Bandai placed 126th overall out of the 2,000 companies listed, scoring 881 in growth, 807 in profitability, 973 in safety, and 644 in scale. Of the Japanese game companies ranked, Namco Bandai ranked the highest.

Most interesting to note is how Nintendo fell from its position of 219th last year to 1,647th this year. The company has been struggling to meet hardware sales as the Wii U has fallen short of expectations and is reconsidering its business structure. Nintendo got a near-perfect safety rating at 998 with average scores in profitability and scale, but the lowest possible score in growth.

Similarly, Sony dropped in its placement, but not nearly as far as Nintendo did. Ranked 163rd last year, Sony is now 292nd and got a perfect score in scale. It received average scores in profitability and safety but only a 673 in growth.

Broccoli, a small company that publishes anime-related games, was just behind Namco Bandai at 157th with high scores in growth and safety. Nihon Falcom, Ys and The Legend of Heroes publisher, also made the top 200. Placing 173rd, the company received good scores in growth, profitability, and safety, but it scored only a 556 in scale.

Nintendo will have to rethink how it does business. Despite releasing games that were well-received last year (Legend of Zelda: A Link Between Worlds), and a handheld system that sold well, its Wii U hardware has still not caught on. It's not surprising that it received the lowest score in growth.

Source: Toyo Keizai (Japanese) via Dual Shockers

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I wonder if Nintendo's sudden plunge had anything to do with how Iwata didn't step down after announcing its sharp drop in projected revenue. You can hide a lot behind "parameters"; especially those based on any sort of interpretation.

In a business culture as conservative (read: traditional) and concerned with personal shame as Japan's, his retention of position after such failure might be met with more than a slight tinge of spite here.

Capcom improved its score (whatever that means)?!

How in the hell did that happen?

Casual Shinji:
Capcom improved its score (whatever that means)?!

How in the hell did that happen?

It'll probably go down again after they do ANYTHING this time around.

Dragonbums:

It'll probably go down again after they do ANYTHING this time around.

But that still makes it bad for Nintendo if Capcom somehow outranks them. 0.o
I'm still surprised at how big that gap is, I was thinking they'd drop at most 150 places, not 1428 places.
Although now I'm curious to see what company is number 2000...
Hopefully this restructure and change of plans will prove good for Nintendo.

Casual Shinji:
Capcom improved its score (whatever that means)?!

How in the hell did that happen?

Monster 4 maybe? Frontier G was also brought to the PS3 this year. And they still have Sengoku Basara 4 to release next month. Point is, despite their failings, they still put out games at a steady rate. At least in Japan, anyway.

Neronium:

Dragonbums:

It'll probably go down again after they do ANYTHING this time around.

But that still makes it bad for Nintendo if Capcom somehow outranks them. 0.o
I'm still surprised at how big that gap is, I was thinking they'd drop at most 150 places, not 1428 places.
Although now I'm curious to see what company is number 2000...
Hopefully this restructure and change of plans will prove good for Nintendo.

I feel this has a lot more to do with public perception on recent news at this point as opposed to actual influence in Japan.

Kind of like how with EA screwing the pooch out of multiple companies and IP's suddenly BoA- a company that was the champion queen at getting "Worst company in America" awards- now gets beat by Electronic Arts, twice in a row. Granted this isn't near that kind of scope the only reason why EA won was venting.

Dragonbums:

I feel this has a lot more to do with public perception on recent news at this point as opposed to actual influence in Japan.

I hate to disappoint you, but Tokyo Keizai, which is where this is from, is one of Japan's 3 leading economic and political magazines. This isn't just a public opinion magazine that holds no weight like how the Consumerist's "Worst Company in America" award was, this holds a bit more weight.

Neronium:

Dragonbums:

I feel this has a lot more to do with public perception on recent news at this point as opposed to actual influence in Japan.

I hate to disappoint you, but Tokyo Keizai, which is where this is from, is one of Japan's 3 leading economic and political magazines. This isn't just a public opinion magazine that holds no weight like how the Consumerist's "Worst Company in America" award was, this holds a bit more weight.

Ah, okay. I wonder then, how do they rate a businesses influence in Japan? Financials is definitely one of them.

Dragonbums:

Ah, okay. I wonder then, how do they rate a businesses influence in Japan? Financials is definitely one of them.

Seems it's based off of current economic standing, in which Nintendo forecasts a loss of $335 million which will affect their stock. The list is determines by profitability, growth, and safety (basically working conditions, etc.).
Nintendo was marred by the fact that they received a 500 on growth, which is the lowest possible score to get, while doing average on the other fronts.
The other thing is, this isn't something that people can vote on like how the Consumerist's "Worst Company in America" award was like, hence why EA won, this is inside from people looking at the market itself with no internet votes to sway it (thanks Consumerist, BoA should have won. >.>)

That's two down... (MS)

One to go, and the PC Gaming Master Race shall control the world!

All aboard the Nintendo Hate Train, CHOO CHOO. Just one article after another that says there in trouble. Seriously, I don't think Iwata or anyone else should step down as much as they should take pay cuts like what Iwata did just a year ago. Then they should take that saved money and some of the big ol'piggy bank to do at least one of three things: lower the cost of Wii Us massively, fund some big project or first/second party developer to make something the world market will like, or go on an advertising campaign to show people what the Wii U is AND is capable of. Maybe make a good Metroid while they're at it.

Neronium:
The other thing is, this isn't something that people can vote on like how the Consumerist's "Worst Company in America" award was like, hence why EA won, this is inside from people looking at the market itself with no internet votes to sway it (thanks Consumerist, BoA should have won. >.>)

Too bad, too. Bank of America, a company that's putting people on the streets with all their future, could have at least seen something's wrong if they won first place. Now they just see Consumerist's voters are just those game nerds that are sore about paying too much for their hobby. At least with this professional survey, maybe someone in Ninty will think "Ah man, we need to step up our game."

If investors start to get squeemish, that big war chest of money Nintendo has can evaporate quickly. And investors don't care about how good the game play of the next super mario game is going to be or how much gamers love such and such franchise. If they have a few more 'core' game launches that are met with mediocre results, they are going to pull their investments which drains resources away from projects that Nintendo might want to do... like develop new hardware.

Which in the end is alright. Nintendo has been sitting on its laurels for far too long, depending on evergreen titles and nostalgic fan loyalty. They actually deserve the backlash from the people who actually have money and seek to invest it for a share of the profits and dividends... and that is what you really are wanting... a pay out. And don't kid yourself. Every year a publicly traded company does not pay out their dividends, their share of the profits to the investors, is a year of weakened confidence for further investment. Nintendo has not exactly been too good at paying out their dividends to investors as of late.

Consider that in 2009, Nintendo dividend was 1.40. 2010, 1.10. 2011, 0.40. 2012, a mere 0.16. I don't want to imagine how very little they are going to pay out for 2013. That does not scream to investors a very healthy company. That means that the investor is seeing next to nothing in return for their investment. Compared to their highest value in ten years during the heyday of 2008 with the Wii frenzy at over 73 a share... Nintendo stock is only 16.68 currently... up a bit from new years at a low of 13.31 but not exactly impressive, even in the face of good sales of the 3DS.

So the writing is on the wall for at least the investors and business types... Nintendo is not exactly a good company right now. And every single less than intelligent move that Iwata and the staff make is only going to continue to erode that confidence in the people who actually at the end of the day decide the fate of a corporation financially.

Casual Shinji:
Capcom improved its score (whatever that means)?!

How in the hell did that happen?

In Japan Capcom releases better games in general. They also still have a massive arcade gaming culture in Japan which North America has frankly lost. Capcom is a major player in that respect along with Namco Bandai.

Maybe a change of captains could be beneficial. Iwata's done some good work in his time, but he's also the guy who steered Nintendo into this shitstorm. Ideally, someone who sees the value in going third-party.

That's a pretty nebulous metric. Then again, people always do love putting arbitrary numbers to very abstract concepts.

Hairless Mammoth:
-snip-

From what I understand BoA has been winning that award for a pretty damn long while now and it's clear that it means absolutely zero to them. I think nothing short of an honest to God business failure will make them change their ways.

There was a time when I would have been sad about this, but Nintendo has spent the last two console generations doing absolutely everything to drive me away. At this point all I can feel is satisfaction and the small hope they will go back to not sucking someday.

Dragonbums:
That's only ideal for you and a few other people entitled whiners. If that's the idea a new Nintendo CEO has regardless of their money making handhelds, and a console that still has a chance to turn things around then they are even worse than Iwata. Especially when they only have to look at the example of SEGA. Whom has lost a lot of it's IP's to obscurity and overall influence in the gaming sphere since going third party

Sega may have lost those things since going third party, but they didn't necessarily lose those things because they went third party. Keep in mind, I'm not arguing for or against Nintendo going third party.

bluegate:

Dragonbums:
That's only ideal for you and a few other people entitled whiners. If that's the idea a new Nintendo CEO has regardless of their money making handhelds, and a console that still has a chance to turn things around then they are even worse than Iwata. Especially when they only have to look at the example of SEGA. Whom has lost a lot of it's IP's to obscurity and overall influence in the gaming sphere since going third party

Sega may have lost those things since going third party, but they didn't necessarily lose those things because they went third party. Keep in mind, I'm not arguing for or against Nintendo going third party.

It's still overall a pretty big fall from grace and whether or not it's since or because of third party doesn't change the fact that all of these occurred in the time that SEGA became third party.

Which is basically what I was getting at in my comment in response to the OP that thinks that a good potential replacement for Iwata would be somebody who will horrendously downsize the company and their profits to third party to appeal to the minority of users who don't feel like playing Mario on Nintendo consoles, and ironically enough have no problems buying their competitors consoles to play their dev exclusive content.

Dragonbums:

Mcoffey:
Maybe a change of captains could be beneficial. Iwata's done some good work in his time, but he's also the guy who steered Nintendo into this shitstorm. Ideally, someone who sees the value in going third-party.

That's only ideal for you and a few other people entitled whiners. If that's the idea a new Nintendo CEO has regardless of their money making handhelds, and a console that still has a chance to turn things around then they are even worse than Iwata. Especially when they only have to look at the example of SEGA. Whom has lost a lot of it's IP's to obscurity and overall influence in the gaming sphere since going third party

The WiiU has no chance of turning it around. It's doing worse than the Dreamcast did in it's day. Meanwhile Sega has expanded its popular brands to heights they've never reached before. Nintendo can only prosper by going third party. It was great to hear they're taking another look at mobile and tablet. It's hopefully a sign that they can break out of outdated business patterns and be successful again.

Mcoffey:
Meanwhile Sega has expanded its popular brands to heights they've never reached before.

Um, what? I'm pretty sure the consensus is that Sega's IPs have decreased in quality since going third-party. Just look at Sonic.

Nintendo makes their games with the hardware in mind.

Dragonbums:
It's still overall a pretty big fall from grace and whether or not it's since or because of third party doesn't change the fact that all of these occurred in the time that SEGA became third party.

Which is basically what I was getting at in my comment in response to the OP.

There still isn't a clear cause and effect relation between those two though, so I'm not sure how good of an example Sega would be for Nintendo. Even ignoring the fact that both companies are in different situations, industries and markets.

VG_Addict:
Um, what? I'm pretty sure the consensus is that Sega's IPs have decreased in quality since going third-party. Just look at Sonic.

What happened with Sonic is that Team Sonic has had problems trying to figure out how to best transfer sonic from 2D to 3D. This can't be attributed to them not having their own proprietary hardware to develop the game on.

VG_Addict:

Mcoffey:
Meanwhile Sega has expanded its popular brands to heights they've never reached before.

Um, what? I'm pretty sure the consensus is that Sega's IPs have decreased in quality since going third-party. Just look at Sonic.

Nintendo makes their games with the hardware in mind.

I don't know, Sonic started sucking long before they went third party. Just look at stuff like Sonic Spinball, Sonic 3D or any attempt to follow in Mario 64s footsteps. There's plenty of shitty spinoffs and similar that indicates that Team Sonic might have lost some important creative people along the way.

Mcoffey:

The WiiU has no chance of turning it around. It's doing worse than the Dreamcast did in it's day.

Considering how the majority of the issues with the Wii U surrounds around poor advertising I'm pretty sure that is easily fixable.

Also, the Dreamcast had a whole lot of factors surrounding it and before and during launch. A lot of it being releasing consoles in 3 year intervals, losing stock to Sony, losing money in arcade, etc. etc.

Meanwhile Sega has expanded its popular brands to heights they've never reached before.

Yes, Sonic for the longest time got shit ratings, they got ripped off of millions of dollars on A:CM because Gearbox are assholes, went through a lot of restructuring, and suffering from financial troubles. They surely have reached new heights of mediocrity and struggles.

Nintendo can only prosper by going third party.

False. Seriously. That's all there is to it.

It was great to hear they're taking another look at mobile and tablet.

For you.

It's hopefully a sign that they can break out of outdated business patterns and be successful again.

So by that logic Sony and Microsoft should go third party because they are participating in outdated business practices. We all know they will be oh so much more successful.

I'm surprised other people haven't pointed this out, but Nintendo's current situation is similar to Sony's position last gen: Coming off a gen where their console dominated, only to undo all of it with a console that's difficult to develop for, and launching with no good games.

MrBaskerville:
I don't know, Sonic started sucking long before they went third party. Just look at stuff like Sonic Spinball, Sonic 3D or any attempt to follow in Mario 64s footsteps. There's plenty of shitty spinoffs and similar that indicates that Team Sonic might have lost some important creative people along the way.

Sonic's stock started tanking when the Saturn didn't have a real Sonic game. I still say his Dreamcast games were decent, and he didn't go to hell until SEGA went third party. And there have still been a few good ones since then too.

VG_Addict:
I'm surprised other people haven't pointed this out, but Nintendo's current situation is similar to Sony's position last gen: Coming off a gen where their console dominated, only to undo all of it with a console that's difficult to develop for, and launching with no good games.

Ironically enough I've been making that comparison for quite a while now actually. The Wii U is Nintendo's PS3, in that they made a lot of stupid decisions that bit them in the butt. If that's the case then next gen means it should be good for them if they actually fix some of the issues like how the PS4 fixed a lot of the issues it had.
Still won't stop the complaining, but that's a given because that will never stop no matter what.

Dragonbums:

snip

Thing is Iwata clarified his comment about smart phones saying that Nintendo STILL isn't interested in putting their titles on them:

http://blogs.wsj.com/japanrealtime/2014/01/20/nintendos-woes-dont-mean-game-over-for-its-consoles/

We might seem some tie-in apps, but don't ever expect full titles like Pokemon, Mario, Zelda, Metroid, Fire Emblem, Smash Bros, etc on them. At this point Nintendo is pretty much immortal.

Oh, and it does seem that while most people will talk about how Nintendo's stock went down 18%...they then forget to mention the market CLOSED with it only having drop 6% when all was said and done.

http://www.gonintendo.com/?mode=viewstory&id=220750

I really wish people would stop half-assing their jobs

Honestly, I don't think ONE bad console gen is going to kill Nintendo, especially after coming off the Wii and DS, both of which were insanely profitable. Hell, it took Sega several consecutive failures to go third party.

Aiddon:

Oh, and it does seem that while most people will talk about how Nintendo's stock went down 18%...they then forget to mention the market CLOSED with it only having drop 6% when all was said and done.

http://www.gonintendo.com/?mode=viewstory&id=220750

I really wish people would stop half-assing their jobs

While it's good that Nintendo managed to make back a lot of the stock, the fact that it still closed the day down 6.15% still isn't very good. Especially since after E3 Microsoft's stocks fell only 1.34% after the price of the device and the other "features" were announced. Nintendo is bound to make them back, but this really sort of negates some of the stock they gained after China removed the console ban, so at least they still have around 5% or so more from that. But sudden changes like that aren't good at all.

Also, the BBC reported the loss as it happened, which is generally what major news sites will do as it happens. Now if they don't update it then it's their fault, but at the time they reported it the stock loss was correct. If they don't update it then they are in the wrong, but seeing as in the link you posted how there are people claiming "The BBC has something against Nintendo" then I find that just plain sad because the BBC has a lot more to report on than one singular company that makes entertainment devices, and that was a big stock loss of the day at the time. If it were Sony that lost all that stock then they'd report that.

Mcoffey:
Maybe a change of captains could be beneficial. Iwata's done some good work in his time, but he's also the guy who steered Nintendo into this shitstorm. Ideally, someone who sees the value in going third-party.

It's frankly more realistic to see them going full hand-held. It's like people forget about how amazing the 3ds is in the midst of the Wii U shitstorm.

And just to put in another point, you think you want Nintendo 3rd party, inbefore you realise how great SEGA became after they went 3rd party. I would honestly rather see Nintendo going off the games market completely before they go 3rd party.

Winterfel:
It's frankly more realistic to see them going full hand-held. It's like people forget about how amazing the 3ds is in the midst of the Wii U shitstorm.

They wouldn't have to if they just released some fragging games on it already.
The 3DS? Yeah, lets not forget that it was a FAILURE for its first year.

Because, and forgive the repetition, it had no sodding games. But eventually it got games and it turned around.

The 3DS is selling mainly on 1st party titles. Check its quarterly best selling lists and at any given time you will find Mario and Pokemon occupying most of the top 10 spots.

If the appeal of Nintendo consoles are the Nintendo games, then they need to get the lead out.
They should have gotten the lead out already, given the WiiU had a solid year head start on its newer competition.

Oh man, I really wanna know where Capcom is on that list. It'd probably give me such a laugh.

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