Iwata states three factors that led to Nintendo’s first-ever operating loss

The Independent has interviewed Nintendo president Satoru Iwata about Nintendo’s very-first operating loss. Iwata has stated three factors to back up why this situation occurred for Nintendo with the first reason involving the transition from Wii to Wii U. This is a normal problem according to Iwata.

Apparently, the 3DS was the second factor with its launch price and lack of games causing a sales problem for Nintendo until the price drop and the release of key titles. The third factor involves the global economy and Iwata notes that the Yen is serving Nintendo at a disadvantage because of its strength at this time. Are there other factors you can think of that played an important part in Nintendo’s operating loss?

“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.”

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