Iwata Explains The Factors That Led To Nintendo’s First Operating Loss


In an interview with The Independent, Nintendo president Satoru Iwata explained the factors that led to Nintendo’s first-ever operating loss, which was recorded earlier this year. Iwata said:

“It’s very unfortunate that we had to record a loss and I feel personally responsible for that. My goal is that this will be the only time we record a loss. There are three factors that led this loss. First of all, we were, in terms of the console life cycle, in a console transition phase, so the fact that sales shrank during this period is actually quite normal.”

“The next factor is that when we launched the Nintendo 3DS last year it lost momentum after launch, so we had to take measures and cut the price in order to avoid a failure toward the end of the year, which meant we were selling Nintendo 3DS units at a loss; these two problems we will solve this year.”

“The third factor, which is outside our range of influence, is that the global economy situation is unstable and the exchange rate is very disadvantageous for us with the Yen being so strong. Obviously we have no influence over this, so we need to find a set-up at our end that will still allow us to make profit.”

In the same interview, Iwata was asked if he thought that the Wii U was considered to be “next generation” in terms of graphics as the PS4 or next gen Xbox will be.

“A similar topic came up when we launched the Wii, some people were comparing it to other consoles and saying: “Well, is this an improvement on the specs offered by competitor consoles?” But that’s not our approach or what we define as “next generation”. We look at the user experience, the gaming experience, how we can improve that, change it, offer new kinds of gameplay. How we can get people to play more often, how we can allow people to connect from one living room to another living room and this is what we focus on and what, for us, makes a new generation.”

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