Nintendo's newly appointed president Satoru Iwata announced at an analyst meeting today, that the company would make serious changes in direction, due to a fear of a decline in the game industry.

According to reports, Iwata said that "The effort to produce machines with better technology has reached its limit", and because of this Nintendo would change their plans to focus on just developing games.

"We can't be optimistic about the game market. No matter what great product you come up with, people get bored" said Iwata, before going on to say "I feel like a chef cooking for a king who's full".

These changes in stategy are somewhat similar to Sega's announcement last October, and their announcement over a year ago to cease production of the Dreamcast in favour of becoming a games publisher across all formats.

However Nintendo seem to have gone a step further, saying that they don't even believe online games are the way forward, claiming that there is still a very limited appeal to them amongst gamers.

Nintendo plan to sell 50 million Gamecubes by March 2005, and to stockpile their cash reserves for future intensive investments in what Iwata claims is a high-risk business, saying that he has "a sense of crisis, that price cuts in software could destroy the game industry" and that "If things continue, they may lead to the decline of the entire game industry".

We'll bring further news of this shock news, as soon as we hear any more, but it seems that Nintendo's new president has more than just a few changes in mind for the company.