Nintendo chief stays on, health business planned

Jan 30, 2014
In this photo taken Sunday, Dec. 15, 2013, shoppers walk through the sales floor of Nintendo 3DS video game software at an electronics store in Tokyo. Nintendo Co. says its profit for the first nine months of the fiscal year fell 30 percent because of languishing sales of its Wii U home consoles and game software. The Japanese maker of Super Mario video games reported Wednesday, Jan. 29, 2014, a 10.2 billion yen ($99 million) profit from April to December, down from 14.55 billion yen a year earlier. It did not break down quarterly numbers. (AP Photo/Shizuo Kambayashi)

Nintendo has been unable to arrest a slide in console sales as more people play games on smartphones and tablets. The company's apparent solution? A move into health care.

Nintendo president Satoru Iwata vowed Thursday to stick to the company's old ways, refused to resign or cut product prices despite its dismal earnings, but said the video maker will enter the industry.

Iwata didn't give details of what he called his "quality of life" business plans, except that it won't be a wearable device.

Kyoto-based Nintendo already offers fitness games. Iwata promised to disclose details later this year.

Iwata displayed his typical stubbornness in brushing off criticism about how the maker of Super Mario and Pokemon games should update itself for the era of and other mobile devices. The popularity of such devices has been drawing consumers away from consoles devoted to games but Nintendo has resisted changing its business to incorporate tablets and smartphones.

"Nintendo has value because it is different from others," Iwata said at a Tokyo event for analysts and reporters, a day after he and other top executives took a pay cut for the company's poor performance.

Nintendo reported Wednesday a 10.2 ($99 million) profit for April through December, down from 14.55 billion yen a year earlier as sales of Wii U home consoles and 3DS hand-held devices languished. It did not break down quarterly numbers.

Nintendo has slashed its annual forecast for Wii U sales from 9 million units to just 2.8 million, fewer than a third of its earlier estimate.

Earlier this month, the company forecast a loss of 25 billion yen ($242 million) for the fiscal year through March 2014. It had earlier forecast a profit of 55 billion yen ($532 million).

Nintendo shares fell 4.3 percent Thursday to 12,325 yen.

Explore further: Nintendo profit falls on sluggish Wii U sales (Update)

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Nintendo profit falls on sluggish Wii U sales (Update)

Jan 29, 2014

Profit at Nintendo Co. fell 30 percent in the first nine months of the fiscal year as sales of Wii U home consoles, 3DS devices and game software languished. Top executives announced they would take pay cuts.

Nintendo reports loss as Wii U sales languish

Oct 30, 2013

Video game maker Nintendo sank to a loss in the latest quarter as sales of its Wii U game console continued to be eroded by a shift to gaming on smartphones and tablets.

Nintendo chief rules out price cuts for Wii U

Jan 31, 2013

Nintendo's president Thursday ruled out price cuts for its new Wii U home console as a way to boost sales, vowing to become profitable again in its core businesses as smartphones and tablets increasingly ...

Yen fall returns Nintendo to profit (Update)

Jul 31, 2013

Nintendo is making money again courtesy of a weaker yen but its business selling game machines is ailing, with sales of its flagship Wii U console still lackluster.

Nintendo returns to profit, lowers sales forecasts

Jan 30, 2013

Japanese video game maker Nintendo Co. returned to the black for the first nine months of its business year and more than doubled its profit forecast for the full year, getting a perk from a weaker yen, despite ...

Recommended for you

EU Parliament votes to break up Google

11 hours ago

The European Parliament voted overwhelmingly for the break-up of Google Thursday in a largely symbolic vote that nevertheless cast another blow in the four-year standoff between Brussels and the US Internet ...

Toyota finds new air bag issue, recalls more cars

15 hours ago

Toyota Motor Corp. recalled more than 40,000 vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and is investigating a new type of air bag problem that could lead to further recalls.

Netflix sues Yahoo CIO for alleged kickbacks

Nov 26, 2014

Netflix is suing a former company vice president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.