Aquamarine
Member
Nintendo's operating profits (negative numbers = operating loss) by year:
FY3/2004: 107,683
FY3/2005: 111,522
FY3/2006: 90,349
FY3/2007: 226,024
FY3/2008: 487,220
FY3/2009: 555,263
FY3/2010: 365,567
FY3/2011: 171,076
FY3/2012: -37,320
FY3/2013: -20,000 (projected)
FY3/2014: 100,000 (Iwata's commitment)
(Units of measurement = Millions of yen)
The thing is, Nintendo's projections aren't unreasonable at all. In fact, their 2014 FY prediction is around 60% of what they made in 2011.
100 billion yen SHOULD NOT be a hard target for Nintendo to achieve, especially given their history throughout the past decade.
It's perfectly reasonable for an investor to be upset + want Iwata out if Iwata can't achieve this.
Nintendo has never had a year in the past 10 when one of their systems was losing money while the other one wasnt doing fantastically to pick up the slack, not to mention the vast increase in game development costs. I just dont see it being attainable if they have to pricecut.
Oh I know that... I'm just saying that from an investor's point of view, a 100 billion yen commitment is not some "lofty, unreasonable mark," given the size of Nintendo. It's a perfectly reasonable commitment that Nintendo SHOULD have been able to achieve if their management hadn't completely messed up the Wii U.
But yes, a 100 billion fiscal year does seem contingent on at least one of Nintendo's consoles doing very well worldwide.
The 3DS is mediocre outside of Japan, and the Wii U is failing worldwide. It would take a major, MAJOR paradigm shift to change Nintendo at this point.
In fact, if the Wii U sales don't pick up, I could see ANOTHER operating loss in FY 2014 for Nintendo. Now THAT would secure the future of Iwata....three years in a row of operating losses...