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Iwata Admits He Misread The Market, Says Nintendo Needs To Observe Foreign Trends Better

Nintendo president Satoru Iwata has confessed at a news conference called in Osaka that he misread the market and says that Nintendo needs to keep track of foreign trends better. Iwata admitted that Nintendo products are doing better in Japan than the US and Europe, and said he should ultimately observe things better.

“Nintendo President Satoru Iwata admitted he had misread the markets and hadn’t issued “the appropriate instructions.” He said the company needed to change and “propose something that surprises our customers.”

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 “If we stay in one place, we will become outdated.”

“Mr. Iwata noted that Nintendo’s sales in Japan were better than they were in the U.S. and Europe, and said the company needed a better way of keeping in touch with trends abroad.”

“In Japan, I can be my own antenna, but abroad, that doesn’t work,” he said.

105 thoughts on “Iwata Admits He Misread The Market, Says Nintendo Needs To Observe Foreign Trends Better”

  1. See he gets it. He just didn’t want to act upon it until now. He isn’t some old fart that lives in the past, he just needed to wake up.

    1. Wrong. Nintendo isn’t doing great in Japan either. With the exception of strong 3ds sales, wiiU sales are terrible there. If iwata starts releasing games on mobile, it’s a clear sign he doesn’t get it. He will be continuing to pursue the casuals, which is NOT the answer. That will be a shame if it does happen.

      1. I agree mostly. It was easy to sell my parents on the Wii, but they won’t buy a WiiU. It has nothing to do with power, but all the games they love (very casual games, which is ok, they’re nearly 60) are on the 360. WiiU is trying to be hardcore and casual, as a result, both have turned away.

        Nintendo can only pull out of this with software at this point. Stop trying to make software Hardcore and casual. Make some Very casual games for the casual gamers (or the HC gamers who like to relax) and make hardcore games for the rest of us. Games the casuals will hate. That’s the software that we want. Challenging. Intense. Mind-bending.

        Basically, enough of this luke-warm shit.

      2. But putting games on Mobile would be pursuing the “Casual” market full force. Non-Casual gamers play on dedicated game Consoles and $1,000+ PC rigs. You are contradicting yourself.

      3. they think wiiu is doing better in Japan. Oh my god! (worth spelling it out) Averaging only 10k a week except the holiday and now its back down to 10k a week. If US is worse than that.

        Say goodbye to the WiiU. Sorry its over. only 2.8 mill for the year. I’m sorry it was a poor run from the start of the end is here.

        1. You could be right if this trend continues when big games like MK8, DKC:TF, X, SSB etc come out and sales don’t pick up. They need to do lots of drastic things like a price drop for example.

          1. I bought my wiiu on day one, and everytime something is about to release they sale it will help. Pikman 3, mario world, lego city. Nothing did anything. Smash Bros is big but not as huge as mario worlds and mario kart. It is about have the sales. So if Mario bros did 2 mill in sales. Smash bros will end up with about 1 mill.

            I don’t see smash bros doing anything based on is history in sales. Not saying it will not do good but it will not move consoles.

            Now Mario kart is different, that will move consoles, but one game in 2014 doesn’t make a console.

            Nintendo has 2 big games this year, that seems like it will be released. That is not enough. Just like last year, 2 big games. Pikman 3 and mario world.

    2. Pretty sad that the wii which I hardly used for the first 6 years was so successful and the wiiU which I use on a daily basis ,even if only for watching internet videos sometimes, is failing.

      1. i think maybe some people who bought the wii got disapointed that’s they didn’t purchase a wii u when it came out. first, people i think who got satisfied with wii are mostly casuals or elders who think that wii u and wii are almost basically the same while core gamers who didn’t use their wiis for a long time thought it was not worth their money that’s why they didn’t get a wii u. some are like me, who’s just waiting for x, shin megami tensei x fire emblem, and hd zelda to be released

    3. Nintendo made the mistake of taking a wait and see approach. they never acted fast and sufficiently enough to make changes, and it’s hurting them a lot. sure, they have enough money to survive for many years, but the most important thing here is their brand image. nintendo has greatly damaged their brand by making all the wrong choices for several years. all news sites posted article after article of the wii u being a failure, even news sites like yahoo, abc, nbc. power in a console may not mean everything, but in today’s modern society it means a lot more than what nintendo estimated, especially if they are to get the third party support that they desperately need. there’s very little nintendo can do now, and they’ll have to ride the wave out for a few more years with the wii u. however, if wii u continues selling disastrously low levels, the stores are going to reject the console, and nintendo will be forced to pack it up or sell it at extremely low prices (150-99 u.s dollars?). this of course, will prove to be too much of a loss for nintendo, but i don’t think they will cancel the console. either way, i have no idea how nintendo will keep the console alive. at this point it’s only up to nintendo and no third party support to keep it alive, and that clearly is not enough in the long term, but since it’s unlikely they’ll give up on it, i think they will simply continue partnering up with as many developers as possible, plus they might decide to remake older games to help fill in the gaps, and they might even publish third party games by themselves (a call of duty published by nintendo for their own console for example). the mission will be to sustain the wii u for one or two more years at most.

      1. None of you people get the real problem. Yeah, Nintendo will survive. But the BIG QUESTION is how they are letting down every WIIU owner down. We have spent a lot of money on a WIIU for it to be a 2 year console. I will not buy another Nintendo out of the gate.

        The attitude of Nintendo is horrible for their customer. The wait and see. Well, I spent good money on a console and Nintendo is not standing up to their end.

  2. This confession isn’t something I could see coming from Sony nor Microsoft execs at all. Props to him for being honest.

    1. He admitted the mistake back in the beginning of the year and they did nothing to change it back then. They thought their stupid direct video push their console. Its stupid direct video only pushes games for people that have the console.

      Mass media ads push a console. I’ve seen more Xbox1 commercial in 1 month than i’ve seen for the entire WiiU’s life. Then they are all about Mom,Dad and kids on casual.

      Nintendo doesn’t get it, casual people are not holding their breath for the next console.. that is why they are called CASUAL GAMERS. Nintendo is so stupid. Most of the WII are collecting dusk in the casual home for year now.

  3. Misreading Markets? Sad to say that this is particularly true. I’m more interested in what the Japanese markets have rather than what the European or US markets have, sadly, and there’s very little variety that satisfies me.

  4. here is an idea iwata we dont like secrets and then what makes shit worse is when it seem like nintendo isnt going to do shit you wait months b4 you announce something good but by then its to late. second you dont really listen to the fans, its like were telling you what games we want but you ignore us and that is why your doing so bad.

    1. I agree. Gamers have been pleading with Nintendo for years, and Nintendo has chosen to ignore is. Hope they open up their ears now and give us the games we’ve been being for.

  5. This is what makes Nintendo Nintendo, they realize their mistakes and instead of being stubborn about it, they try to fix and dont repeat the mistake.

    1. Thats funny, don’t repeat the mistake. I remember a interview that Iwata said they learned from the 3DS launch and wiiu will not suffer that kind of launch. That is correct, WiiU suffered a worse launch than 3DS, atleast 3DS turned around in about a year. WiiU got worse. So they did change the pattern from the 3DS launch and made it worse.

      Nintendo doesn’t understand that the WII was a fluke and stopped thinking they found something that everyone wants.

  6. The Wii U isn’t done yet. The console is great, but it was marketed rather poorly. Anyway, kudos to Iwata for admitting the problem. Also… @mr serious: Perhaps if you had used correct grammar or even just a bit of punctuation, maybe they could have deciphered your suggestions.

    1. I’m sorry its done, you will see less 3rd party releases this year than 2013. Just watch. it will be just Indie and Nintendo releasing games. for the most part. Not completely, some games have been already in development so they will be released. but the new games starting in 2014, will not have WiiU. Which most will be release in 2015.

  7. The problem is, the Western market isn’t open to change or real innovation nowadays, instead it’s rather conservative, quite like Nintendo’s ethos has been these past 25 years. The thing is, all Nintendo have to do is continue delivering that pure gameplay experience. A game isn’t about being the latest annual gun or sports game, or indeed a cinematic experience, but it should be a journey where the core experience is the gaming. Nintendo have gone too-left field with the Wii U. Poor marketing and a lot of hate stirred by the gaming media have left it in-limbo, but once the games start coming, people will buy.

    No issue yet, but props for him admitting he’s made a mistake. If there’s no improvement come 2015, then the panic button may be pressed with mass hysteria.

    1. Agreed, I’m from US and I prefer Nintendo the most because they still prefer to make captivating games and without the need of blood and guts. Once “those” franchises make a come-back people will have Nintendo’s attention. Also, are you from US? Just wondering.

      1. I don’t need a game that has got blood and guts. I am still happily plugging away at Mario 3D World. Yes it’s casual, but it’s nice to step away from the mature games and play something that I did when I was a kid.

        1. Exactly, and I am as well. Gotta love the level design, another big reason why I like Nintendo. They make every level different and take care to do so. I’d rather play this than any call of doody game.

    2. Mario The Annointed One

      Yes they are.. why do u think console gaming is dying and tabpho games are on the rise.. because americans demand changes on thr fly..

      1. If you think console gaming will die you’re an ignoramus. There’s no way mobile devices will take over the gaming industry…..

  8. Im glad he’s owning up to it, and I can respect that. I hope he knows that online functionality in a game is nearly a standard in this day and age. Teens dont hang with their friends and play games like they used to, so games that dont have online will easily take a hit in sales. Most gamers nowadays only care about graphics and specs, so Nintendo has to keep making games that pill push the power of the Wii U. Like “X”, Watch Dogs (hopefully), Bayonetta etc. And give us a Star Fox game on the Wii U dammit!

  9. SherlockWillFightBilbo

    What about Reggie? He lives in the US and reports directly to Iwata. Why hasn’t he told him, “The ideas you have won’t work in this country”?

    1. He’s the president, he will take all of the blame. Iwata isn’t exactly what’s wrong with Nintendo. It’s much more than him. (Not directly toward you, but to people who hate Iwata)

      1. That is why all the head of Nintendo needs to step down. From the marketing, development to overall company management.

        Look at how poor Wii Sports is. The tennis has many issues and after 3 months, no update. I think Nintendo is hurting for writing for the WiiU. The design of the games are poor.

        Wii Sports is a very good example. Club feature that is just a shell of feature with nothing behind it. It basically is a poor attempt to handle online matches..

        Pikman3 was a very nice looking game but for 60$ it was very poor. When you can finish it in 2 – 3 hours. Its not worth it and sales proof that. That fact they can’t get with the times with online matches. Guess how great pikman would be with online battle mode. but nintendo is back in the 80s still.

        3d World, is not selling well either and that is because it was meant for casual gamers. Levels are not challenging (meant for a 10year old), short levels. You run through them very easily. The easiest mario world I played. Disappointed.

  10. Finally it’s clicked to them! It’s been concerning how much they’ve been ignoring criticism and market trends. I understand that games must have the Nintendo charm, but would it be that hard for them to simply ask “What would you, the player, like to see in the next ____?” Would make things easier for them and more satisfying for us.

    1. Yeah. It’s not like they’ve only made this one mistake, which could easily be fixed by more advertising and some more first party games at a faster rate. It’s not like that at all yo.

    2. Exactly, I’m a fan of Nintendo but you have to be a blind fanboy to believe they are perfect. In reality, far from that: Trying to fix their mistakes they might come up with newer mistakes and, thus, the cycle will repeat on and on again.

      But deep inside I want to believe Nintendo will make a comeback, I want to believe. I’m too emotionally attached to their franchises and their brand, I grew up with them. Therefore, I’ll stick with them, but if they abandon hardware and become a 3rd party only publisher I’ll lose all my respect for them. Specially if they publish their franchises in smartphones and tablets, that will decrease their value by a lot and ultimately kill the company as we know it.


      Which brings a new point, is it ok for Nintendo to skip E3 this year again? They know they have to advertise their shit, they will have NICE games to show up this year and they can for sure appeal to the masses with Smash Bros and Mario Kart and make a beautiful spectacle. Do it Nintendo, as we all know, slashing the costs it takes to make an appearance in E3 by making your own small thing didn’t work out for you, did it?

      Anyway, I hope Nintendo will be in a better situation soon. I’ll be the first in line to buy their stuff and I would really love to see the critics not spreading doom and gloom towards them for a change. :P

      1. They won’t abandon the hardware business, because their stuff stays on their hardware.

        That’s like saying to MS to put GoW and Forza to PS4, vice versa with GT and Killzone to go to Xbox One. It just doesn’t work that way.

  11. Finally after years they admit it . Well to make it up send some of those RPG 3ds games and games we have been asking for before they end up on other consloes with online multi player

  12. The reason why wii u is doing so bad is because the marketing has been shit.

    Almost every Nintendo game has no online play.

    When I read about so many new games that skip to make it for the wii u I get sad. If wii u gets it, it has been a bad port or some dlc that it wouldn’t get.

    The only reason that I feel they are doing wrongly is online!!

    1. The Wii U is doing bad, because you have to entice consumers early on. Marketing now will change nothing. If people view your product for the first time and think they don’t “need” it or “want” it then they’ll never buy it. First impressions mean EVERYTHING in this world, especially in America and I assume the same in Europe. With so many people not willing to give Wii U a chance (many of whom are passing the console up for Xbox One and PS4) Nintendo can’t get a single game on the platform to sell well enough to entice other companies (aside from Indie Devs) to work on the platform.

      Basically, the Wii U is a fish out of water and the only thing that’s keeping it from dying is Nintendo’s occasional “splash.” It’s like the Gamecube, but slightly worse in a sense. But, being comparable to the Gamecube is not a bad thing for us consumers (those of us who really only play Nintendo games) as Nintendo’s at it’s best when they are struggling. It’s when they take the most risks, make the most games and do their best work.

      Let Nintendo worry about the Wii U, we’ll just worry about the amazing games that will come to the platform :)

  13. Exciting news! But wouldn’t it be both really interesting and kinda awful if Nintendo came out with a first person shooter in response to their “change” in the U.S and European markets?

    I also wonder if this will effect the next home console each country receives (You KNOW Nintendo isn’t giving up in the home console market). The only way I can see Nintendo reacting to the U.S and European market as well as the Japanese market is if they come out with a system that is stronger than the next installment to the Xbox and Play Station, but had another variation of the console that was weaker and could be sold for a lower price and played just Nintendo games, while the more expensive console would play 3rd parties AND Nintendo games.

    No matter what happens, I can only imagine that something great will come out of the Wii U’s sad failure. :)

  14. This will be High Command’s new approach in destroying the Xbot menace and restore order as soon as possible…

    1. “Mr. Iwata denied that he would take responsibility by stepping down. He said that he would take a pay cut instead.”

      Do work Iwata.

    1. Exactly they need more communication between regions, region-free games from now on, online multiplayer on everything, update again, TVii for Europe instead of promises as that pisses people off, quicker release schedule starting with moving up DKC:TF to early February and MK8 by early March, more work w 3rd party to get equal games on Wii U as other systems. Some or all of these need to happen. Update to speed system up further is important and maybe update look of menu so it’s different than the 3DS – an upgrade like the Wii U.

  15. They can start changing their ways by putting Gamecube games on the Virtual Console and I’m not talking one…at…a….time. They should come out with ten Gamecube games a week until they are all on the VC.

    I know people who mainly play Xbox who still own their Gamecube JUST for Mario Strikers.

    I know I already own a Wii U, but I can definitely say that if they put Mario Sunshine on Virtual Console, it would be a system seller for me. I never could beat that game when I was younger. I got stuck on the roller coaster level and ended up selling the game to Gamestop… biggest mistake. I regret it now :(

    Also, I never played Metroid Prime 1 and 2 so I really want them on the VC. I would KILL for 007 Nightfire on Wii U where maybe they add in some online multiplayer like in Goldeneye 007 for Wii!!! :D

  16. finally opened his eyes, unfortunately kinda late..

    Behind his little cute persona there is a sneaky conniving nasty snake, he’s been making promise after promise after promise and doesnt hold his word. GTFO Iwata, you ruined the whole wiiu, theres only pikmin and mario…fuu iwata lying bish you disgust me.




    1. to be honest, more than ever, the Nintendo must differentiate from the “competitors”
      obviously focusing on other stuff, their unique touch is what makes Nintendo Unique

  18. they need a specific team large enough to get all the back catalogue up and ready for download from the e-shop. they need to upscale the wii emulator – just hire the people who have already done this for the PC wii emulator. they need to release an HD handheld with great battery life, can access steam and can be used as an extra gamepad controller for the wii u. it would be nice if there was some sort of USB CPU speed up add-on device also – but at this point i think i’m just over reaching.

  19. This is encouraging. Very encouraging. He is finally starting to get it. Hopefully this train of thought continues. If he’s going to finally start to listen to us then we can hold off on the ax………….for now.

  20. Mea culpas are nice and all but this isn’t the first time he’s had to go through this since Wii U launched. Iwata needs to figure it out and quick. Reggie too, no more of this “petitions are nice and all but shouldn’t influence our decision making process bs”. If hundreds of thousands of your fans are so disgruntled about the botch job you’ve been doing maybe you should get your damned head out of the sand and listen too us.

    Miiverse is filled with dissatisfied fans. The virtual console is still a under used disappointment. Iwata said they’d fix that and look at us here in North America without SMB3, which was promised in 2013. There’s so many simple fixes they could implement that it really makes me wonder if they even give a shit. They’ve stated numerous times that the make a profit on every customer once a console and two retail games are purchased. Well here we go:

    Cross Buy

    Expand the effing VC, add all systems that can be handled by the current hardware and let’s be honest, 3DS can handle everything up through GameCube.

    Update that archaic purchases tied to system bs.

    Games games games!!!!! Don’t say you learned your lesson on the 3DS and then not have a core Mario or Zelda game ready at launch.

    Speaking of games, revive all franchises. Nintendo has the greatest library of IPs in the history of gaming. Utilize them all.

    Listen to your fan base and wake up to the fact that your loyal fans, those of us gaming since the 80s are no longer kids, we’re the adults with jobs and money to spend. I for one would be glad to throw my money at you and am seriously waiting to do so.

    Did I mention games?

    1. “Speaking of games, revive all franchises. Nintendo has the greatest library of IPs in the history of gaming. Utilize them all.”

      This. Any revival would be great, but games like Wii Music, Urban Champion, and Devil World are better off fading into obscurity.

  21. “misread the market”


    “i don’t understand everyone”

    Iwata admits, he doesn’t understand anyone who isn’t himself … i could have told him this, but i guess we had to wait for him to figure it out because he wouldn’t have listened to (or understood) us.

  22. Nice to see some Nintendo big wigs making much needed realizations. Marketing strategies need to change.

  23. Too bad he realizes that after their reputation with gamers is ruined…
    Sony and Microsoft had all the time they needed to shit in people’s brains with their marketing while Nintendo was making dumb advertisments with casuals playing Mario Kart.
    We’ll see how it turns out.

    1. These “gamers” are not real gamers…

      Real gamers play for the games and creativity, not for specs, graphics and realistic “games”…

      1. They may not be “real gamers”, but they are still the ones who shape the market unfortunately. We saw that very recently with the releases of Xbone and PS4, it’s market that now relies on systems more powerful than others and hype. Nintendo will have to line up with them if they want to keep their consoles going in the West.

  24. We have been telling you this Iwata for the past 2 years or so. Start listening to the damn core Nintendo fans that made you a succsess back in the NES days again and shit will get fixed.

  25. I’m just worried that they’ll work more on tablets and phone games now and further slow down on games for the Wii U. The Wii U needs a lot more games, 3rd party games. The Wii had so many different games that there was a lot to choose from. The Wii U is lacking. And bring all those retro games to the VC shop already. NES, SNES,Gamecube, N64, GB, GBC,GBA. All of them, so we all can choose our favorites. Gosh, pirates can get all of these old games(can you hear my jealousy?), why not us, who would love to pay you for them???

  26. Nintendo can’t make every game every gamer wants, but they should consider makin one that is most requested by the fans, like Metroid.

  27. 1.) make gamepad optional
    2.) sell no-gamepad WiiU cheap! … gamepad seperately
    3.) make smartphones an optional gamepad
    4.) give WiiU free to patient waiting rooms … access with your smartphone, login to a public WiiU with your NNID, play your games … other people with smartphones could join-in

    1. eating at a food court? … should be a giant WiiU screen for this … waiting for the movie to start? … should be some WiiU on the big screen for that

  28. I never read so much chaos articles when the PS3 was failing and I am not reading chaos articles from the Vita failing anywhere, but NINTENDO IS DOOMED articles all over the place because of the Wii U!

    If they keep the 3DS going on great like that and revive the Wii U, they’ll be fine, no other Nintendo console sold like the Wii and they are looked as better as the Wii, so what?

    Not every Nintendo console they release is going to sell 80 million plus units, people need to chill!

  29. If I was Iwata, I would get more marketing out there, decrease the Wii U price to a sweet spot so it can be sold. Bring Metroid and/or Star Fox back frequently. Make Metroid more of a Mature Franchise. Make Zelda series look more realistic, but not too realistic (unless we are talking about Toon Zelda Games). Pokemon is a Behemoth. X and Y outsold Mario Kart 7 in 2 months. XD Mario I feel should stay as he is, just make the games harder for those that don’t want to 100% it. Mario Kart is fine, nothing to change here, main Mario side series like Mario and Luigi, Paper Mario, Luigi’s Mansion and other popular ones I have mentioned should be made every few years. Pikmin needs to get more popular. Animal Crossing I feel should stick on the handheld devices, it’s a social game and your taking the Nintendo Handheld to communicate with people. Nintendo said this wasn’t happening, but Kid Icarus isn’t coming back (for a good while atleast). Not sure what to do about the Kirby and DK series though. But if Platinum becomes first party, then I’d love to see W101 get another chance along with Bayonetta which being a mature title does favors. Nintendo also have X thanks to Monolith Soft so thats a plus also. Nintendo also need to either buy or hire 3rd Party companies to make some of these games for them, like Metroid. Hyrule Warriors is already 3rd party developed. They need to increase the masses, not casuals, not hardcores. A veriety of different genres with the right amount of effort, fun and difficulty put into them should put Nintendo at a good position. Yes listen to the consumer, just be careful of the ones you actually listen to, their decision can either make or break.

  30. it’s not that iwata’s incompetent as an entrepenreur – it’s, um, “misreading” information.

    promises are cheap (and in his case mostly empty); i’ll believe he wants to change for the better when i see it, otherwise they could rot for i care.


  32. The Wii U CPU is woefully underpowered, there is virtually no hard drive space to download games, why isn’t the controller pro and Wiimote plus nunchuck included with the Gamepad?, there needs to be more virtual console games and a service that offers one free virtual console game every month with subscription. The virtual console should have GameCube games on it. And the fact that so many games were delayed ruined the Wii U’s reputation.

    1. i dont want to imagine how much would it cost if it came with a 250 gb hardrive prob $499 lmao. 32 gb for $250 is a fuckn joke. they need to drop that useless gimmick controller and make it optional. have 150gb 200 gb model with a new procontroller design for $150/$200.

      and HELL NO i wont pay $19.99 montlhy suscription just to get fucking tetris or mario lost levels as a free download
      if they start giving free wii u games like ps3 does giving free ps3 games im all for it.
      im not here for fuckin VC games im not that stupid.

  33. Reggie is either a complete moron when it comes to the US market or he has no power and influence at all.

    We told them the Wii U was a stupid name. They didn’t listen.

    We told them the console was underpowered. They didn’t listen.

    We tell them we want good games on the VC. They don’t listen.

    Are you listening to us now Iwata? You better be.

  34. Nintendo needs to work on popular franchises that gives us an option to pick someone else over the main characters. Which means you’ll have a better game like 3D World thanks to four other characters, plus two of them being put fresh into the spotlight. Your sales would be much better if you realized this, Nintendo!

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  36. 1) well I hope now is back on earth and will do something about it. I don’t want to shot the man when is down but what Nintendo does in Europe? what was the marketing and the strategy for 2013. 60-70% is nintendo’s fault, 10%-20% are nintendo’s fan and the rest is the media.
    2) How come he misread the market? I do believe Nintendo has a COO in US and Europe therefore I believe those one should get the blame.
    3) Nintendo need to get several RPG in their library cause for me it was disappointing not to have a proper RPG except for the last three games which came out at the end of the Wii’s and are still very expensive to buy (£35-£60).
    4) I am surprise a game like Spyro did not managed to sell more hardware.
    5) lot of people believe Nintendo is dead cause sony and microsoft release they console. I do believe that now we have the fact and they are all out it’s just the beginning. I forsee MS back stabbing their fans and going back to the camera and internet always on. Sony selling very expensive games. nintendo struggling to have 3rd part develloper but still doing OK cause the 1st and 2nd part will do good games.

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