* Hedge fund manager Seth Fischer writes 2nd Nintendo letter
* Adds to calls to move on from making games only for
* Says Nintendo well placed to make immediate entry into
(Adds further comments from Fischer's letter, Nintendo comment,
By Nishant Kumar
HONG KONG, Feb 26 Seth Fischer, one of Asia's
best-known hedge fund managers, has written to Nintendo Co Ltd
urging the Japanese console maker to develop and sell
games for mobile platforms run by Apple Inc and Google
Fischer, of Hong Kong-based Oasis Management Co Ltd, sent a
similar letter in June to Nintendo, in which Oasis owns shares.
His latest missive adds to investor pressure for the company to
move on from making games only for its propriety consoles.
Some investors want Nintendo, which recently slashed its
sales forecast for the Wii U console, to capitalise on the
spread of smartphones and tablets by releasing games that can be
played on any mobile device.
"Nintendo needs to embrace this thematic change in consumer
demand, behaviour and expectations to stay relevant," said
Fischer, Oasis' chief investment officer, in a letter on
Wednesday obtained by Reuters.
Fischer, who once managed $3.3 billion for DKR Soundshore
Oasis Fund, opened his own hedge fund in 2011 which manages
about $200 million.
"It is readily apparent that the standard elasticity of
demand principle no longer applies in the consumer entertainment
market when access requires the purchase of a physical product,"
Fischer said in the letter to Nintendo Chief Executive Satoru
Nintendo has dug in its heels on a game console strategy
that has dragged it into operating losses for three years in a
row, ignoring calls to go mobile and promising instead to wow
customers with health-related innovations.
Unlike rivals Microsoft Corp and Sony Corp
, whose recently released XBox One and PlayStation 4
have seen strong sales, the creator of "Super Mario" has
resisted pressure to open up game development to other firms.
"We consider individual requests separately within the
company but I don't think we would announce the results
thereof," a Nintendo spokesman said in response to Fischer's
The spokesman declined to comment directly on any
consideration Nintendo may have given to Fischer's request.
Fischer could not be reached for comment.
Nintendo relies on the popularity of its franchises, such as
Mario and Zelda, to drive sales of its hardware, but investors
fear Nintendo is missing out on opportunities offered by
smartphones or tablets, over 1 billion of which are in use and
account for a rising proportion of games played.
Mobile games developer King, for example, generated $1.9
billion in revenues in 2013, or $5 million a day, from its game
Candy Crush Saga which has been downloaded more than 500 million
times since its 2012 launch.
The importance of mobile platforms for technology companies
was driven home last week by Facebook Inc's $19 billion
purchase of messaging app WhatsApp, which followed a similar
acquisition by Rakuten Inc the week before.
"As the holder of what is arguably the largest library of
casual games, Nintendo is well placed to make an immediate entry
into mobile," Fischer said.
(Additional reporting by Reiji Murai in TOKYO and Denny Thomas
in HONG KONG,; Editing by Michael Flaherty and Christopher