Nikkei says June will be a test for Iwata
The prominent Japanese publication The Nikkei has released an article stating that this June will be a major test for Nintendo president Satoru Iwata in turning around the fortunes of the company. According tot he article, Nintendo has rejected the investor suggestion to go mobile with smartphone games by asking, “Are there any companies that have sustained revenue growth from smartphone games?” Nintendo continues to reject the idea that it should be joining the mobile space with its iconic characters.
Additionally, a look at profits and earnings for the fiscal year ending in March showed a loss of 35 billion yen, compared to a loss of 36.4 billion yen the previous year. This marks the third straight loss in a row for Nintendo since launching the Wii U. According to Iwata, the appeal of the Wii U can only be known after playing it.
“…only after playing the Wii U is it possible to understand its appeal. Low sales are due to the console being not well-enough known.
Currently Nintendo sits on around 500 billion yen in cash, but with the third straight loss in a row this could mean Iwata’s time as CEO of the company is ending if things don’t turn around. Approval ratings for the CEO have been dropping as well as profits; in 2011 Iwata was reappointed with 92% of the vote, but in 2013, Iwata was reappointed with only 77% of the vote.