Nintendo Needs to Take a Page from Microsoft’s Playbook

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2Q 2014 | IN-1019432

Nintendo Closes a German Office and Lets Go 130 Staff from Nintendo Europe


We highlight Nintendo in this insight because the company continues to struggle—new first-party Wii U games are expected this year (e.g., recently released Mario Kart 8), but the outlook remains grim. In recent news, Nintendo announced that it will lay off 130 employees from its European operations and consolidate its European headquarters in Großostheim (Germany) to Frankfurt (closing an office and warehouse in the process). Reducing its cost structure is one small step towards turning the company’s fortunes around, having recently reported its third consecutive annual loss, but more is needed. Some might point to Nintendo’s past as reassurance that this is only a temporary downturn, even if it extends throughout the life of the Wii U. It is true that Nintendo has not hit homeruns with each console platform, and 2005 is an example, when the company only shipped 3.3 million game consoles...

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