Nintendo gamers who hoped that the Japanese company would translate household games Super Mario and Donkey Kong into mobile applications bluntly announced their reactions after president Satoru Iwata admitted guilt.
The gaming company’s record annual loss didn’t leave the company’s executive insensitive in the face of damage to the enterprise’s renown and remuneration, but his decision not to make Nintendo software available on smart devices brought harsh reactions from devoted players. Although Iwata took full responsibility for the financial hit, mentioning that it is “my duty, more than anything else, is to revive our business momentum,” Nintendo gamers announced their reactions with regard to the Japanese company’s limited game selection and game analysts like Ace Securities’ Hideki Yasuda stood up to fans’ disapproval.
“Nintendo’s worse-than-expected performance is mainly due to a slump in the Wii U,” Yasuda said.
The game analyst also expressed the same concerns as Nintendo gamers, whose announced reactions walked hand in hand with the failure to offer attractive games. Yasuda points at Nintendo’s rivals, whose “strong demand for their consoles” eventually took the market away from the Japanese company.
The $44 billion global video games market is usually divided into three: Nintendo, Sony and Microsoft. However, the new PlayStation 4 and Xbox One won gamers’ hearts with a whole range of games and an open mind with regard to mobile. Nintendo is losing their gamers, who announced their harsh reactions toward Iwata’s refusal to license iconic brands like Super Mario for use in mobile applications. The fans boycott Nintendo’s lack of presence in the mobile world and turn to Sony and Microsoft for consoles. As a result, the Japanese company sold only 2.8 million units worldwide in nine months while gamers prefered to purchase 4.2 million PlayStation 4 consoles in two months after its release.
CEO Iwata Harsh Punishment for Record Loss
Nintendo’s earlier forecast for nine million consoles put CEO Iwata into the position to cut half of his paycheck and between 20 and 30 percent of the board of directors’, including the salary of Mario’s father, Shigeru Miyamoto. However, Japanese executives are known for their habit of taking pay cuts when they fail to meet financial expectations.
Although Iwata decided to buy back eight percent of the company’s shares in order to mitigate its fall, Nintendo gamers announced their reactions, which walk hand in hand with Iwata’s refusal to offer mini-games on smartphone devices. Another reason why Nintendo purchases failed to reach the executive’s expectations is also offered by gamers, whose reactions were announced not necessarily in words, but in actions. While Sony and Microsoft cushioned their landing with millions of purchases in a few months after the consoles’ release, Nintendo’s lack of interest toward including games like “Grand Theft Auto V” and “Battlefield 4” on its newest unit convinced fans not to direct their money to the Japanese company.
Nintendo’s $210 million profit in its third quarter did not give Iwata hope. Instead, he announced upcoming decrease in the fourth quarter “due to seasonal factors” and believes that the cost of the total annual loss could revolve around $355 million.
Apart from the Wii U slow sales, Nintendo’s hand-held 3DS sold only 13.5 million units from an expected 18 million. Both analysts and Nintendo gamers announced the fact that their negative reactions with regard to the Japanese company are strongly related to Iwata’s refusal to enter the mobile world. Both the boost in smartphones and tablets and the popularity of Xbox One and PlayStation 4 have caused Nintendo’s sales to fail its board of directors’ expectations.
By Gabriela Motroc