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The Japanese makers of Nintendo have reported loss of 25 billion yen ($242 million) for the fiscal year through March 2014.
According to the Nintendo Co., profits fell 30 percent as the sales of Wii U, 3DS devices and game software dwindle. The problem lies with the use of smartphones, tablets and other hand-held gadgets that have been drawing away gamers from consoles devoted for game play.
Tomoaki Kawasaki, senior analyst at IwaiCosmo Securities Co. said, “it would be a positive surprise if Nintendo comes out with an online game strategy for smartphones, although the marker doesn’t expect that move, consumers will still buy Nintendo games if they are wowed by them, but that hasn’t been happening.” I can personally vow that thousands of gamers will jump at flash based or mobile platform Nintendo or Nintendo licensed games.
Eiji Maeda, senior analyst at SMBC Nikko Securities Inc., said Nintendo‘s philosophy is to take the road less traveled and “they have been steadfast in sticking to that strategy.”
The Kyoto-based company calculated a profit of 55 billion yen ($532 million), but the profit last fiscal year was only 7 billion yen. The annual forecast for Wii U sales went from 9 million units to 2.8 million. It sold 2.4 million units in April through December.
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According to Nintendo, “we expect sales to decrease significantly due to seasonal factors as the year-end sales season concludes.” They have already cut the sales on it’s hand-held 3DS video game device to 13.5 million units from 18 million units for the fiscal year.
The company has also announced that top executives will also take pay cuts for five months starting in February, to take responsibility for the poor performance. President Satoru Iwata’s pay will be halved, two representative directors including game creator Shigeru Miyamoto, were hit with a 30 percent cut. Seven other board members will lose 20 percent of their pay. For jobs working in Nintendo, click here.
Image Credit: www.fanpop.com
