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Nintendo’s Iwata Won’t Resign in Wake of Huge Loss

by Eric Frederiksen | January 17, 2014January 17, 2014 11:00 am PST

Iwata Wii U

Often when a company is in a tough situation, people get moved around. New ones are brought in, old ones nudged out. Nintendo just posted their third consecutive annual loss, and investors and shareholders are probably looking for some explanations about what’s going on and what Nintendo is doing about it.

“There will be no major management shake-up in the short term,” CEO Satoru Iwata told reporters. According to Reuters, Iwata apologized to share holders, but said his failure did not mean that he had to resign. Iwata was handpicked by the previous CEO, Hiroshi Yamauchi, to succeed him in 2002. It’s easy to see why he’s reluctant to leave his post.

Nintendo’s had a rough year. In one hand they hold the Nintendo 3DS, the best-selling video gaming machine. In the other, they hold the Wii U, the worst performing console in the company’s history. They revised forecasts from an operating income of just under a $1 billion to an operating loss of about $335 million. They’ve also cut the Wii U sales forecast by 70 percent.

Both systems have also taken a price cut this year. It made sense with the 3DS, but when coupled with the Wii U’s cut, it paints a rough picture. And there’s no word yet on the performance of the 2DS, though the production cost is likely so low on that that it isn’t going to hurt them much if at all.

With the fiscal year ending on March 31, it’s all but impossible for Nintendo to turn the year around. With that said, E3 is just around the corner, along with new entries in some of Nintendo’s biggest franchises, so the next year is theirs for the taking.

Polygon

Eric Frederiksen

Eric Frederiksen has been a gamer since someone made the mistake of letting him play their Nintendo many years ago, pushing him to beg for his own,...

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