Satoru Iwata implies he may resign if operating income target for next FY is not met

Nintendo is understandably in a lot of pressure after revising the forecast for the Wii U and 3DS

The company’s president Satoru Iwata implied that he may resign if the operating income target for the next fiscal year is not met. The target is supposed to be 100 billion Yen ($1 billion) in operating income.

Iwata apologised at an analysts’ meeting today–as reported by ITmedia (in Japanese)–and said: “We feel greatly accountable for this severe outlook. We plan to actively release our key titles for Nintendo 3DS which could potentially lead the markets this year.”

He also hinted that the portable and home console development groups would be merged. Iwata was very determined in reaching the operating income target and said that “achieving it was his commitment.”

Nintendo shares have fallen slightly after they announced the forecast revision for both the Wii U and 3DS. $1 billion in operating income could be extremely difficult for the company to achieve and requires their current consoles to perform well, along with healthy software sales.

Nintendo is currently taking a loss on each Wii U hardware, and that needs to be quickly fixed by implementing proper cost reduction measures. That and combined with strong mass market titles like Mario and Pokemon, the company has a chance of hitting that 100 billion Yen target for the next fiscal year.

4 Comments

  1. MagoIichi

    January 31, 2013 at 1:11 pm

    Stop spreading that doom and gloom propaganda with headliners like that.

    • Jason Mounce

      February 1, 2013 at 2:15 am

      It’s not Doom and Goom….it’s a title that incorporates the subject of the article..

  2. Aiddon

    January 31, 2013 at 3:04 pm

    …I don’t see how he implied that anywhere. It amazes me how much people want Nintendo to be in trouble

  3. Pingback: Microsoft Corporation (MSFT), Sony Corporation (ADR) (SNE): Wii U Numbers a Catch-22 for Nintendo - Insider Monkey

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