Nintendo president Satoru Iwata knows that the company is in a bad position. The forecasted sales of the new Wii U gaming console dropped by around 70%, which is causing the company to strongly consider their position in the gaming market. There is going to be a “major management shake-up.” Iwata said that the company is thinking about a new structure for the business.
“Given the expansion of smart devices, we are naturally studying how smart devices can be used to grow the game-player business,” stated Iwata. “It?s not as simple as enabling Mario to move on a smartphone.”
Nintendo reported a third consecutive annual loss. Nintendo shipped around 4.3 million Wii U consoles to retail stores worldwide in 15 months since being released. Nintendo Wii U competitors like the Microsoft Xbox One and Sony PlayStation 4 sold around 3 million and 4.2 million consoles in under 3 months, respectively.
The forecasts for the fiscal year ending March 31, 2014 was adjusted to almost half of their original net sales. Wii U shipments projections were dropped from 9 million to 2.8 million. Nintendo’s fiscal results dropped from a projected ¥920 billion ($8.8 billion) down to ¥590 billion ($5.6 billion).
This past October, Iwata vowed to meet a forecast of 100 billion yen in full-year operating profit and 9 million units in Wii U sales. Nintendo has lost around 80% of market value since the original Wii drove shares to a high of 72,100 yen back in November 2007, according to Bloomberg.