HR boss named new Nintendo president

TOKYO: Nintendo Co yesterday named a 65-year-old human resources executive as president to lead the company’s longawaited push into smartphone gaming and development of its new console.

“Tatsumi Kimishima will succeed the late Satoru Iwata,’’ the company said.

Kimishima, who takes office on Wednesday, previously worked for the Pokemon Co and was chief executive officer of Nintendo of America Inc, where he oversaw the introduction of the Wii console and more advanced handheld devices such as the 3DS.

Kimishima faces challenges at Nintendo, where its business model has been undermined by competitors’ free-to-play games on mobile devices and weak sales of its Wii U machine.

The Wii U hasn’t repeated the success of its predecessor model amid competition from Microsoft Corp’s Xbox, Sony Corp’s PlayStation and Apple Inc’s iPhone and iPad. Those devices also now sell in China after a ban was lifted, leaving Nintendo behind.

“It’s a very orthodox choice, which sends a message that the company is choosing to stay the course,” said Mitsushige Akino, executive officer at Ichiyoshi Asset Management Co. “Investors expecting growth would have preferred to see some bigger changes. Someone with a direct experience in designing games would have been better.”

Iwata was the face of Nintendo for 13 years, fronting everything from product announcements to analyst meetings. Iwata, the first president from outside the Yamauchi family since the company was founded in the late 19th century, tripled revenue.

Nintendo shares have gained 82% this year on expectations the move into smartphones with DeNA Co will revive earnings. It also is working with Universal Parks & Resorts to offer theme-park attractions based on its intellectual property.

The company last week announced a new Pokemon title that uses a Bluetooth-ready to button to interact with characters displayed in the real world.

Nintendo’s revenue has fallen six straight years, dropping to 550 billion yen ($4.6 billion) in the 12 months ended March 2015. That is less than when Iwata took the role.

Since Iwata’s death in July from bile duct cancer, the Kyoto-based company has been l ed by Shigeru Miyamoto, the creator of the Mario and Zelda series, and Genyo Takeda, the architect of the Wii console.

Miyamoto and Takeda will stay with Nintendo, taking the roles of “Creative Fellow” and “Technology Fellow,” respectively.

“It’s a collective approach to leadership, with Kimishima, Miyamoto and Takeda sharing the burden for managing Nintendo,” said Hideki Yasuda, an analyst at Ace Research Institute in Tokyo. “Kimishima’s executive experience in the US means he has an understanding of that very large market.”