Nintendo’s president may be in trouble as the company posts its second annual loss in history

Satoru IwataBack at the end of January, Nintendo reported earnings for the holiday season that reflected the tumultuous state of the company that was founded in 1889. On the one hand, Nintendo revealed that it managed to sell 3 million Wii U consoles between November and January, a promising start for a new machine in a volatile market. On the other hand, Nintendo had already seen Wii U sales drop off dramatically in the new year and had to downgrade its expectations for the fiscal year ending in March. Where the company originally expected to sell 5.5 million Wii Us by the end of March, it was now only expecting to sell 4 million. Revenue projections previously pegged Nintendo’s fiscal 2013 take at $9 billion. Now it is only expecting $7 billion.

On Wednesday, Nintendo will announce how those earnings actually turned out, and industry expectations are that Nintendo is going to miss the mark. Big time. 

Bloomberg reported on Tuesday that, based on the estimates of fifteen different market research sources, Nintendo will post its second annual loss in the company’s history. If these estimates are correct, Nintendo will have at least narrowed its losses. In 2012, Nintendo posted an annual loss of $530 million. The belief is that Nintendo will report a $188 million loss. That’s on top of operating income estimates based on nineteen sources, of roughly $704 million. 

Even though losses have been mitigated somewhat, that operating income could cause a significant change in leadership at Nintendo. Nintendo president Satoru Iwata declared at the beginning of the fiscal year that he planned for the company to report $1 billion in operating income. “It is our must-do for the next fiscal year to revive the momentum of our overseas business, expand the market by exploiting the potential of our products, and therefore retrieve ‘Nintendo-like’ profits,” said Iwata at the time.

“Please understand that [achieving it] is my commitment,” he told investors when asked is he was personally responsible for hitting that earnings threshold.

This spring has been littered with the corpses of game executive careers. Electronic Arts John Riccitiello and Square-Enix’s Yoichi Wada have both been forced to resign in the wake of years of disappointing earnings. Given his comments in the past, Iwata may be forced out, making way for Nintendo’s third president since it entered the video game market in the 1970s.

Even if the analysts’ expectations of Nintendo’s earnings are incorrect, it appears Nintendo will miss its expectations for the spring quarter. The Nintendo Wii U has been savaged at retail. Part of the reason the Wii U has been selling so poorly is the lack of new software. Nintendo planned to release games like Game & Wario and Pikmin 3 in Japan this quarter but both were delayed. Meanwhile key releases in Europe and America were either delayed or outright canceled. Rayman Legends was canceled as a Wii U exclusive just two weeks before its February release, and the notorious stinker Aliens: Colonial Marines was supposed to follow in March before Sega canceled it outright.


Open-world video games are getting too big for their own good

As technology has progressed, open-world video games have grown increasingly bigger. What seems like a universal positive has shown problems preventing the genre from truly moving forward, however.
Home Theater

Apple Music recommendations could get superpowers thanks to latest acquisition

Following the approval of its Shazam acquisition, a new report has surfaced saying that Apple has acquired music analytics firm Asaii, with its founders now members of the Apple Music team.
Emerging Tech

Here are the best (and least likely to explode) hoverboards you can buy

With widespread reports of cheap, knock-off Chinese hoverboards exploding, these self-balancing scooters may be getting a rough reputation. They're not all bad, though. Ride in style with our picks for the best -- and safest -- hoverboards
Home Theater

Free original content is coming to Apple devices, but only if it’s rated PG

New reports say that Apple is planning to bring free original content to the TV app on its devices next year, but don't expect any blood and gore, as the company will only show PG content.

GE Appliances augments its new smart kitchen hub with SideChef

Sidechef is an incredibly handy app for home cooks because of its ability to access more than 5,000 recipes and now home cooks will be able to access the app in the smart kitchen via GE Appliances' new kitchen hub.

Put your iPad Pro to the test with these great games

Did you recently purchase a 10.5-inch iPad Pro, or are you enjoying the 12.9-inch version? If so, we've rounded up a few of the best iPad Pro games currently available on Apple's mobile platform.
Emerging Tech

Awesome Tech You Can’t Buy Yet: DIY smartphones and zip-on bike tires

Check out our roundup of the best new crowdfunding projects and product announcements that hit the web this week. You may not be able to buy this stuff yet, but it sure is fun to gawk!
Product Review

The Oculus Rift is cheaper, the Vive Pro is better. Is the original Vive still worth it?

The Oculus Rift may have brought virtual reality into the public eye, but HTC’s Vive, built in partnership with Valve, does it better. Does the Vive still represent the true future of virtual reality, or are there better competitors on…

As deaf gamers speak up, game studios are finally listening to those who can’t

Using social media, personal blogs and Twitch, a small group of deaf and hard-of-hearing players have been working to make their voices heard and improve accessibility in the gaming industry.

Nvidia is slowly rolling out its next generation of GPUs. Here's what you need to know about them

Nvidia's new RTX 2000 series graphics cards are impressive pieces of hardware, with some amazing advancements and some rather high price tags to match. Here's everything you need to know about Nvidia's new top-tier cards.

Grab a comfy saddle — ‘Red Dead Redemption 2’ campaign clocks in at 60 hours

According to Rockstar Games co-founder and head writer Dan Houser, Red Dead Redemption 2 features a 60-hour story. Houser said "superfluous" content was removed from the game. It launches October 26 on PlayStation 4 and Xbox One.

Jump into an internet DeLorean and play free Commodore 64 games online

The Internet Archive has added more than 8,800 full Commodore 64 games to its software library. Here's how you can play them completely free in your browser without the need for a joystick.

‘Fortnite’ in-game tournaments will give you the chance to beat the pros

Epic Games is introducing in-game tournaments to Fortnite. The initial schedule includes five tournaments, with commemorative pins going to the victors. Down the road, the pins might grant you access into additional rounds.

Here's how you can keep up with your favorite streamers at TwitchCon 2018

From sessions with your favorite streamers to epic Esports tournaments, there's plenty to look forward to at this year's TwitchCon 2018. We cover how you can attend, where you can watch if you can't, and which events you don't want to miss.