Nintendo’s Satoru Iwata To Announce Second Year Of Losses

Satoru Iwata NinNintendo Company President Satoru Iwata will announce a second year of annual losses tomorrow, accumulating almost 19 billion yen. Iwata, who became president of the Japanese company in 2002, has pledged a 100 billion yen – approximately $1 billion – profit for this financial year, but analysts say he’ll fail to reach the goal. However, Nintendo are never one to be backed into a corner, as can be seen with their determination to raise sales by their recent US advertisements and their expansion into the social markets.

Averages compiled by Bloomberg have recorded that Nintendo have lost 18.7 billion yen over the tax year, ending on March 31. But this year, Iwata wants to aim big, stating that it is his ‘personal commitment’ to see the 100 billion yen profit in sales achieved.

He said: “First of all, what I mean by committing to earning an operating profit of 100 billion yen is that this is going to be reflected in the financial forecast of the next fiscal year unless the expected foreign exchange rate situation changes. Otherwise, I would not have used a word such as ‘commitment.’

“I believe my job is to establish as promising a situation as possible to accomplish this aim. From this perspective, for Nintendo 3DS, it is vital to create similar momentum as we see in Japan in the overseas markets. So, the point is to launch several key titles seamlessly abroad to change the sales momentum of Nintendo 3DS itself, and then to create a cycle where hardware sales soar and its software sells well.

“As for Wii U, there will not be any key titles at the beginning of the year, so even though it will take some time, starting from this summer when the software lineup is enriched, we will promote our platform and aim to change the sales momentum dramatically.”

The Wii U has seen a dramatic decline in sales, partly due to a string of software delays that Iwata admitted were crucial to winning over consumers. And with tough competition on the horizon from Sony and Microsoft consoles, Nintendo’s president will have to stick to a firm resolve. What do you think about the second year of profit losses and should Iwata be pledging such a large profit for this year?

44 thoughts on “Nintendo’s Satoru Iwata To Announce Second Year Of Losses”

  1. With Pokémon, two Zeldas, a possible Mario Kart and much more coming out this year, I find it reeeaaaally unlikely they they’ll have another year of losses. Maybe not 100 billion yen in profit, but certainly some profit.

      1. I think the WW remake is important enough to be included. I have to brothers that are not buying the Wii U before it comes out! :D

  2. With the release of Wii U, the slow release of games for them and what little 3rd party it has plus with the recent recovery of 3ds (as in starting to gain profit) this was hardly a suprise.

      1. Hey when you got something to say…..why not promote to people with like minds…..this is a Nintendo site ….I like Nintendo, videos uploaded and shared lol

  3. It’s always a struggle dealing with a console launch, this just proves that all the employees of Nintendo are actually human.

  4. With them spending money on new buildings, they just started to gain profit from 3DS, and the slow launch of Wii U. How much did they get sued for from the ex-Sony employee who claimed that they stole his 3D technology? I believe that they will start gaining profit next year, but not 100 billion yen.

  5. The best part is they realized the two key components no games and no marketing. They aim change those games and marketing therefore increasing visibility and profits.

  6. Hey guys, I don’t know exactly why everyone’s fielding the Bloomberg piece without checking but the 100 billion yen forecast isn’t for this financial year, it’s for the next one. Bloomberg editors misinterpreted a translation by Cheesemeister3K

    http://www.neogaf.com/forum/showthread.php?t=510925

    MNN Editors, I hope you’re reading this and double checking it yourselves cuz you have to nip this half lie in the bud.

  7. Your loyal swarm and myself are with you all the way Almighty Commander Iwata!

    Soon the Xbots will be destroyed…

  8. This is what NIntendo gets for releasing the 3DS and not learning anything from its abysmal failure. There was nothing put ports of N64 games and street fighter for months when it came out, and the eshop was a joke. Then they lowered the price and us true fans who bought it at launch were S.O.L.! Now not only is it cheaper but there are more colors, bundles, and freakin’ good games. Why did we buy it a launch? And the “ambassador” program was a joke, 20 ROMS, really? Come time for the WiiU to release what games do they put out? Mass Effect, Arkam City, blops II? Really? Ports from other consoles? Did you not just try and fail a system with a launch line up like that? Nintendo has slumped in to mediocrity, they are a mere shadow of themselves now. The Wii/DSlite was their golden age and its over but they are acting like its not. They won’t be able to sell anything as fast as the Wii and DS lite ever again if they keep making systems like the last too. I hope they post losses next year, too.

    1. Someones mad about buying a 3DS at lunch. who buys a console at lunch expecting tons of great games? almost every console needed sometime to come out with some great games. the title out for the wiiu might not seem like much but theres a few i really like also im sure nintendo is going to blow our mind away when E3 comes….. wait, maybe it will be smart to buy a console after we see what the commpany shows off at the following years E3. seem to work for ppl who bought a 3ds later

    2. Kind of agree with you, but the Wii U launch wasn’t AS bad as the 3DS one. Still, Nintendo definitely should of learned. I think they just wanted to have the console released before Christmas and to have a head start in front of PS/Xbox.

      But it’s a bit of a joke to say that Nintendo is just a shadow or whatever — the 3DS game library is amazing at this point. It takes to build up and Wii U is working on that right now. It seems there are some really great games coming down the pipeline.

  9. Love the 3DS over the Vita due to game selections, but the home console with the games that attract me (adult over 20 yrs of age) the is the PS3. Gore, violence, nudity…anything M rated is typically what I want to see… Not so much kitties and puppies.

  10. The 3ds will be the main driver of sales it seems, which is comforting because they have had great success in the past with their handhelds and can draw from those experiences. The environment they are creating reminds me of the gameboy in later years where it was a string of big game hits which amped up the excitement. The people I notice buying the 3ds now are the same people I knew played gameboy but not necessarily the other Nintendo handhelds.

  11. How do you think the 3DS was a huge success? FIRST PARTY GAMES TO LOOK FORWARD TO!!

    Please…make me look forward to buying the Wii U :(

  12. Well, there goes all those people telling me “but the stock prices are up” when I say Wii U is doing badly. Stock prices may be up, but console sales are still bad, current software lineup is pretty dismal, and Nintendo is still reporting losses.

    Granted, the new Zelda news sounds decent, as does the possibility of a Mario Kart and a proper HD/3D Mario game (hopefully more like Mario 64 than anything else), but still… I don’t know if that’s enough to completely reverse their current position. I hope it spurs profits, and thus more support for the Wii U from other developers, but I have my doubts.

  13. I have a doubt. I doubt the Wii U is going to fail Nintendo. when will everybody realize that every time a Nintendo console is released it totally sucks. but later they release more games for it. it’s already on top mayby this year Wii U will fail because everybody can’t wait for ps4 and xbox 720 but when they come out there is no good games so every body wants Wii U then everybody wants ps4 or xbox 720 because they get sick of Wii U’s games and want new ones then Nintendo releases another home console and it’s not selling good because no good games and people are buying xbox 720 or ps4 because they finally have enough money and it repeats!!!

  14. oh and after e3 the sales will speed up a little but when get a wii u it’s gonna be in august. any body know why?

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