Nintendo is a company that makes money, not one that haemorrhages cash. That’s a statement that been true since the company’s inception way back in 1889. Last year though, the company reported its first ever operating loss – and it looks like it’ll be doing the same this year.
According to business and financial market news.outlet Bloomberg, Nintendo’s will be announcing a 18.7 billion yen loss for the 2012 fiscal year, which ended on March 31. That’s the equivalent of R 1,760,922,900 – which is about 7 Nkandlas, or roughly 76561865 Big Macs. That’s how much Nintendo’s lost in a year.
That’s quite a staggering amount for a company that just three years ago, was swimming in heaps of cash large enough to make Scrooge McDuck contemplate a new career path. Much of the fault, say analysts, lie with Nintendo President Satoru Iwata, who’s quite likely to be ousted from the company soon. The poor situation its new console, the Wii U finds itself in isn’t likely to help.
It’s really unfortunate, because the Wii U is a wonderful machine – but there are just too many problems with its marketing and release.
Firstly, it has a terrible, confusing name – and many consumers don’t actually know that it’s a new console. Too many people believe it to be an add-on to the Wii and whoever greenlighted the name needs to be shot.
Secondly, it was released exactly one year too late. Had it been released earlier, people might have been more intrigued – but as it is now, most gamers are waiting to see what Sony and Microsoft have up their sleeves.
Lastly, Nintendo failed to learn from its 3DS mistakes. Instead of launching with a wealth of titles, the Wii U launched with a mere handful of great games – with close to nothing of real worth coming for the system in the months that followed.
And while the 3Ds has had a significant turnaround, that’s yet to happen with the Wii U – and until it does, Nintendo’s going to stay in trouble. Marketing like this isn’t going to win anybody over though.
Still, never count Nintendo out.
Last Updated: April 23, 2013