Nintendo will miss profit targets according to analysts
While Nintendo is set to deliver a strong E3 line-up this year, analysts are predicting that Iwata’s pledged 100 billion yen operating profit will fall short during the next fiscal year. Iwata will announce the second straight annual loss tomorrow, as the company’s fiscal year ended in March 31st. Estimates put losses at 18.7 billion yen over the past 12 months.
As for predictions for the future, analysts expect Nintendo to post an operating income of 70 billion yen, which will fall short of the 100 billion yen Iwata stated was his “personal commitment”. Only 4 out of 20 analysts tracked by Bloomberg recommend buying Nintendo shares, with 13 recommending to hold them and 3 recommending selling.
Analyst Hideki Yasuda of Ace Securities Co. says that, “Iwata hasn’t produced good results in recent years. He can’t avoid being criticized.”
The current trend for the Wii U is mirroring Nintendo’s launch of the 3DS, which saw tepid sales until a price cut, the announcement of an Ambassador program and strong software sales have turned the handheld around. Perhaps Nintendo can do the same for its home console.