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Nintendo considers 'new business structure' in wake of losses

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Nintendo president Satoru Iwata said that the company is exploring "a new business structure" and is already "studying" how smart devices might help the once-profitable company.

Bloomberg reports that Iwata made his statements today at a press conference in Okawa, Japan, in the wake of a $335 million operating loss and reduced forecasts for sales of its console and handheld devices.

"We are thinking about a new business structure," Iwata said. "Given the expansion of smart devices, we are naturally studying how smart devices can be used to grow the game-player business. It's not as simple as enabling Mario to move on a smartphone."

According to The Wall Street Journal, Iwata said Nintendo must change because its customers are changing.

"The way people use their time, their lifestyles, who they are — have changed. If we stay in one place, we will become outdated."

Iwata said that the future of Nintendo's longstanding business pattern, which relies on Nintendo-created hardware and software, is up for debate.

"We cannot continue a business without winning," he said. "We must take a skeptical approach whether we can still simply make game players, offer them in the same way as in the past for 20,000 yen or 30,000 yen, and sell titles for a couple of thousand yen each."

Iwata's comments about smartphones and tablets aren't the first from the company. In an earnings meeting last October, a Nintendo representative said the company had no plans to bring its games to mobile platforms. Last month, Nintendo of America president Reggie Fils-Aime said that the company was experimenting with "little experiences you can have on your smartphone or tablet," though as a way to bring more customers to its hardware. Last year, Nintendo branched outside of its traditional, homemade hardware and software ecosystem when it released a PC and mobile-compatible version of its Miiverse social network.