Joining Nintendo & Initial Role (2000-2002)
Following his success in turning HAL Laboratory around, Nintendo president Hiroshi Yamauchi offered Satoru Iwata a position within Nintendo’s leadership. In 2000, Iwata became the Head of the Corporate Planning Division and joining the Board of Directors. In this crucial role during the GameCube era, his main objective was to analyze and streamline Nintendo’s game development pipelines, aiming to reduce costs and shorten production times without sacrificing the quality and unique charm Nintendo games were known for. Even in this strategic position, Iwata’s passion for hands-on development persisted, notably assisting HAL and Masahiro Sakurai with debugging Super Smash Bros. Melee to ensure its readiness for the GameCube launch.
Becoming President & Setting a New Vision (2002)
Recognizing Iwata’s capabilities, Hiroshi Yamauchi appointed him as his successor in May 2002, making Iwata Nintendo’s fourth president and the first outside the Yamauchi family lineage. Taking charge during a challenging period where competitors were heavily focused on graphical power and the “core gamer” market, Iwata set a distinctly different course for Nintendo. He championed a “Blue Ocean” strategy, creating a vision focused on innovation in gameplay and creating accessible, fun experiences designed to appeal to everyone – families, casual players, and even those who have never played a video game in their lives.
The DS and Wii Era: Vision Realized (2004-2009)
Iwata’s strategic led to tremendous success with the development and launch of the Nintendo DS in 2004 and the Wii in 2006. The DS, with its touch screen and unique software library, became the best-selling handheld console of all time. The Wii, centered around intuitive motion controls, and broke down barriers for non-gamers and became a global phenomenon, exemplified by the bundled Wii Sports (thanks to Reggie Fils-Amie). These successes dramatically expanded the video game market and led Nintendo to achieve record financial performance during this period.
Later Challenges & Continued Innovation (c. 2010-2014)
The phenomenal success of the DS and Wii proved difficult to replicate consistently. The launch of the Nintendo 3DS faced initial headwinds, prompting Iwata to make difficult decisions like significant price cuts. Subsequently, the Wii U console struggled to gain traction in the market, facing challenges with consumer understanding and third-party support. Despite these setbacks, Iwata continued to innovate, particularly in communication. He pioneered the “Iwata Asks” interviews, offering deep dives into game development, and the “Nintendo Direct” video streams, establishing a new model for companies to connect directly with their fanbase.
Management Style at Nintendo
As president of Nintendo, Iwata adapted his people-centric management style to the larger corporation. He became known for his direct communication with fans and developers through Nintendo Direct and Iwata Asks. In the Nintendo Direct’s he humanized the company by including jokes, and speak directly to players bypassing other media channels. Embodying his belief that creativity suffers under fear, he famously took significant pay cuts during the financial struggles of the 3DS and Wii U eras to avoid employee layoffs, emphasizing leader accountability. He maintained his identity as a “gamer at heart,” prioritizing fun and approachability in Nintendo’s products and public persona, leaving a legacy of leadership focused on empathy, innovation, and bringing smiles to people’s faces.
References
Gaming Historian. (2015, November 23). The life of Satoru Iwata [Video]. YouTube. http://www.youtube.com/watch?v=k4cJh2YgrKE&t=1463
Morris, C. (2013, October 23). The life of the Nintendo Wii – through the eyes of Satoru Iwata. GamesIndustry.biz. https://www.gamesindustry.biz/the-life-of-the-nintendo-wii-through-the-eyes-of-satoru-iwata
Nintendo. (n.d.). Iwata Asks. Nintendo. https://iwataasks.nintendo.com/
NYFA. (2015, August 4). How to be a loved and respected game company president (like Satoru Iwata). NYFA. https://www.nyfa.edu/student-resources/how-to-be-a-game-company-president-like-satoru-iwata/ (Supports points about his management style, direct communication, empathy, and handling of responsibility).
Switchaboo. (2018, January 25). Satoru Iwata (Part 2): The face of Nintendo. Switchaboo. https://www.switchaboo.com/satoru-iwata-part-2-face-nintendo/
Big Think. (2024, March 11). Layoff anxiety? Ask your CEO to roll like Satoru Iwata. Big Think. https://bigthink.com/business/layoff-anxiety-ask-your-ceo-to-roll-like-satoru-iwata/
Nintendo Life. (2019, October 22). Satoru Iwata initially didn’t want Wii Sports bundled with Wii In the US, says Reggie. Nintendo Life. https://www.nintendolife.com/news/2019/10/satoru_iwata_initially_didnt_want_wii_sports_bundled_with_wii_in_the_us_says_reggie
Google Gemini 2.5 Pro was used for assistance in writing this article.