Nintendo Expected To Post Significant Loss For Year Ending March 31, 2013
Just a little less than three months ago, Nintendo president Satoru Iwata pledged to drastically improve the company's financial performance. With a promise of 100 billion yen operating profit for the coming fiscal year, the news he is about to deliver is nothing short of a setback.
According to Bloomberg, Iwata is set to announce an estimated annual operating shortfall of 18.7 billion yen. Analysts also project an operating profit of 70 billion yen for the fiscal year that began just three weeks ago, though it is very early to put much faith in them, especially as Microsoft and Sony are barely crossing the starting line for the next generation.
Even if those projections are spot-on, the financial performance falls short of Iwata's 100 billion yen commitment. The declining value of the yen against foreign currency has helped Nintendo, but the delays of major releases and a relatively weak library (especially in comparison to last week's impressive 3DS Nintendo Direct presentation), leave many consumers wondering why they should make the move to the Wii U.