Japanese news publication The Nikkei says June will be a major test for the Nintendo president Satoru Iwata to turn things around for the company. Here are a few points from the article.
Nintendo rejected the suggestion of a Hong Kong investor that Nintendo move towards smartphone games with the observation “are there any companies that have had sustained revenue growth from smartphone games?”
The head of a large Chinese investment firm assigned to analyze Nintendo observed that “Nintendo must leverage its intellectual property, such as its characters.” As a matter of fact, a few years ago there were rumours that Nintendo was planning to open a theme park based on its characters in Kyoto, but the project has apparently been mothballed.
These comments on Nintendo’s existing properties reflect the irritation of investors who believe that the company has not found new sources of revenue.
Consolidated profits and earnings for the fiscal year ending in March showed a loss of 35 billion yen, (compared to a 36.4 billion yen loss the year previously) representing three consecutive years of losses.
Iwata said “only after playing the WiiU is it possible to understand its appeal. Low sales are due to the console being not well-enough known.” Within the company, proposals for how to play the WiiU are being considered.
Current cash reserves are over 500 billion yen, but whether Iwata will be given unlimited time is a separate question.
At the general meeting in March 2011, Iwata was reappointed with 92.89% of the vote, but in 2013 he was reappointed with only 77.26%.
This coming June will be a major test for Iwata.
I have to agree, E3 will be the final moment Iwata has to put whatever plan he has into action. If Nintendo and Iwata bomb at E3 once more, then Iwata will lose a lot more respect and support from people.