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Nintendo CEO Seen Missing Profit Target as Wii U Flounders

Iwata will announce a second straight annual loss tomorrow, losing 18.7 billion yen in the 12 months ended March 31, according to the average of 15 estimates compiled by Bloomberg. For the year started April 1, Nintendo may post operating income of 70 billion-yen, according to the average of 19 estimates -- short of a target he said was a personal “commitment.”

Nintendo’s Wii U, its first new home-gaming console since 2006, is failing to meet sales targets amid a delay to software releases that Iwata said were crucial to winning over consumers who increasingly play games on smartphones and tablet computers. Sony Corp. (6758) and Microsoft Corp. are also preparing to release upgraded consoles this year, adding pressure on the 53-year-old executive who has been in the role since 2002.

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bloomberg.com
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majiebeast1580d ago (Edited 1580d ago )

Is Iwata gonna step down after 2 bad system launches? You will see it on the next Nintendo Z(fiscal meeting is this week i think)

Abash1580d ago

Im very interested to see how they address the poor sales of the Wii U when they take the stage at E3.

sengoku1580d ago (Edited 1580d ago )

in most Japaneses company's this would mean it's time to step down.
i wonder what will happen.

ToaLugia1580d ago

It would be hard to fuck it up this E3. If they do, man. Idk what to say then.

decrypt1580d ago

Well many companies globally are missing targets. Its called recession. We are in a situation where people dont have the money to spend.

I wouldnt be surprised if the next consoles faced the same slow response.

US and Europe are the biggest consumers of this product. Look at their economies today. If any hope of growth is to be attained console makers needs to focus on markets like China and India.

dangert121580d ago

@decrypt

What gets me is the game prices...we are in a recession, cost of everything goes up, but nothing has gone up like the prices of games...and nothing has quiet gone down like the quality of them either

GT671580d ago

Nintendo could have easily remedy the problem if they open SNES profile re-do or re-master those games in HD

dcbronco1579d ago

@decrypt

I don't think the economy has anything to do with it. Next generation will sell. When the recession first hit people fell back on consoles as a cheaper alternative to other forms of entertainment. People seem to have forgotten that. One game can last far longer than two trips to the movies.

Next generation consoles will show that the problem is with the length of the current generation. Nintendo's current problem is that they made gimmick controller and re-upped on the current generation's specs. A huge mistake given the current generation has worn out it's welcome. See Ascension and Judgement as further proof.

Kevin ButIer1579d ago

ooo my... I though Nintendo was doing great with the ds, 3ds, and Wii sales all over the world, Wii U is falling short in sales but come on... those loses? tell me about poor management

+ Show (5) more repliesLast reply 1579d ago
GamersRulz1580d ago (Edited 1580d ago )

Wii money evaporating as we speak.

LOL_WUT1580d ago

Time for Iwata to step down his influence in Nintendo is only hurting the company. ;)

ShinMaster1580d ago

I remember Miyamoto talking about their first party franchises and wanting to see new things being made by Nintendo devs, but Iwata didn't like that idea, saying that they're not like other companies and that they have a tradition.

lilbroRx1580d ago (Edited 1580d ago )

First off, that is losses for "last year", and they are actually losing less. They are still actually making money overall.

From the actual article all of the Nintendo haters are misquoting

"Nintendo may post operating income of 70 billion yen, according to the average of 19 estimates -- short of a target he said was a personal “commitment.”

Thats 18 billion in losses with 70 billion in "incomse". That is only 30 billion short of their original goal, and most of it is blamed on the Yen losing value, not sales.

Strange thing is that Sony lost more money than that in the same time frame, but no one is attacking their heads.

Root1580d ago

@lilbroRx

"Strange thing is that Sony lost more money than that in the same time frame, but no one is attacking their heads."

First of all were talking about Nintendo not Sony

Secondly....Sony has been attacked nearly all this gen so you know...

Shnazzyone1580d ago

@root

Really? because last i checked nintendo's been the whipping boy for about 10 years now.

Root1580d ago

@Shnazzyone

LOL

If you say so

They made a mistake with the Wii U and people are speaking out. Unlike with Sony people didn't twist every little thing good or bad

+ Show (2) more repliesLast reply 1580d ago
jcnba281580d ago

I don't think Nintendo are worried they have billions in the bank.

Sony on the other hand...

gatormatt801580d ago

@griever137

Sony is indeed the larger corporation, but larger does not always mean more money. Yes Sony has more products, but that also means a larger overhead/operating cost. Nintendo has more money to play with than Sony, it's a fact. I've heard some analyst's say Nintendo could report losses every year, for the next 40 yrs, and still be in the console industry.

http://financials.morningst...

http://financials.morningst...

cee7731579d ago

@griever137

yes nintendo and microsoft both have more money than sony to play with yet sony's the only one who takes risks of all 3 giants thats what I dont get the wii U is so weak lots of new game engines are skipping the platform.(frostbite,Unreal engine 4)just to name a couple. meaning wii U will be missing alot of future 3rd party games down the line

some devs(Mark Rein) said it have the same odds of running UE4 as Ps3 or xbox 360

noirzillagamer1579d ago

Just to help you understand mark rein meant what he said along with his company said fall of last year... ue4 will be scaleable so it wasn't intended to make thay statement to seem like a stretch for it to happen he meant it as a fact that shouldve been known by now. Fronstbite is EA's child is it not? Do you think thay its missing the wii u because of power? That answers is NO!

+ Show (1) more replyLast reply 1579d ago
Deku-Johnny1579d ago

I doubt it, yeah the 3DS and Wii U had bad launches but the 3DS is selling well now and when the Wii U has as many great games as the 3DS has it'll probably start doing well too, you shouldn't be too hasty.

You have to take into account the fact that through all their latest console's failings whilst he's been in charge they have had two of their best selling consoles, one of which is the best selling console of all time.

Shnazzyone1579d ago

SHHHH Don't tell him that missing a profit target doesn't mean they didn't make a profit. Don't tell anyone of N4g that this doesn't mean nintendo wasn't profitable this only means Nintendo was not as profitable as they wanted to be.

+ Show (4) more repliesLast reply 1579d ago
NYC_Gamer1580d ago

How much is 18.7 billion yen in dollars?

majiebeast1580d ago

Around 187 million dollars.

fr0sty1580d ago

188,870,000 to be exact.

Jadedz1580d ago

:'-( (I won't blame anyone wanting him to be fired, or to step-down).

die_fiend1580d ago

Do they mean Wii U flounders? The title makes no sense - well done Blomburg (see what I did?!)

MonkeyNinja1580d ago

Not trying to be a Nintendo-Hater, but I honestly don't think that 1st party titles are going to do much for the system. I think the WiiU is going to be just another N64/Gamecube scenario as far as sales are concerned.

Qrphe1580d ago

I personally don't care about multiplat 3rd party support anymore. I'll ended up buying multiplats for PS3/PS4 anyhow. Am I worried about Nintendo's wellbeing? No, they'll be financially fine. I do expect this E3 to be Nintendo's best yet.

fr0sty1580d ago

Nintendo has survived bad generations before. They made the mistake of picking the wrong gimmick this time around. Motion control worked wonders last gen because nobody had done it before and it required specific hardware to pull off. None of the other guys could do it and not be seen as copycats, and it worked.

This time, N relied on a touch screen interface. Once Sony and MS came up with phone apps that did the same thing on devices we all already had in our pockets, Wii U's appeal went down the drain to many.

I personally would have preferred them going with VR, Oculus Rift looks really cool and I think that route will be the next big thing. JMO.

ps3_pwns1580d ago

i agree with you in this day and age people get bored of seeing the same thing unless its social related and nintendo does a lot of the same thing and these people who bought the wii the ds and then the 3ds they see the wii u and they see the same faces of nintendo characters in every game and these games arent online mp with good online and mics and such. nintendo needs to upgrade mario kart to epic online game and bring in the new super smash and some new ips we havent seen before.

starting out with nsmb u and nintendo land for a console thats supposed to feel fresh and new is lame. new ips is a good way to start off a generation. also no one gives a crap about the wii u pad they already have an ipad that has better tech in it and works better. no one is gonna be wowed by that. also off tv play is taking away from the gaming experience. now you have people watching tv and playing the game. when they would usually play just the game and focus on that and having a fun gaming experience.

Nintendo doesnt care about the wii u because its still not giving world wide launch releases for its games in america. nintendo games take far less mmoney to make as making a game with the lack of graphics and in familiar areas with familiar characters is a lot easier then what other devs have to do. its why people keep saying devs cost gonna go up for the ps3/x360 and be hard so nintendo been having it way easier dont see why they cant step they game up.