The famed Mario creator is on the cusp of reporting another
major loss. According to
, Nintendo (OTC:
) will report a loss of 18.7 billion yen in the 12 months ended
This is the second consecutive loss that the company has
Bloomberg quoted a number of Japanese analysts who complained
about Nintendo's recent performance. They argued that the
company's president, Satoru Iwata, will fail in his mission to
produce a 100 billion-yen ($1 billion) operating profit during
the current fiscal year, which ends in March 2014.
Their criticism is not unfounded. While Nintendo
set a new sales standard
with the original Wii, the company has struggled to turn its
successor -- Wii U -- into the next big game console.
The odds are currently against Nintendo. Between the 2013
launch of Sony's (NYSE:
) PlayStation 4, the presumed arrival of Microsoft's (NASDAQ:
) Xbox 720, and the
lack of interest
in Wii U, Nintendo is not in a great position.
To counter the company's downfall, Iwata has repeatedly
insisted that new software will arrive on Wii U and turn the tide
in Nintendo's favor.
Not Enough Shaders
blogger Emily Rogers begs to differ. She has chronicled some of
Iwata's most notable statements, including an apology for not
releasing enough games during the winter.
"I apologize to those supporting Wii U about the lack of
titles in January and February," said Iwata, as quoted by
Iwata made that statement in January. Since that time, the
company has delayed Pikmin 3 -- which was originally scheduled to
be released within the Wii U's launch window -- several times.
The game has most recently been delayed from June to August.
This puts Nintendo in a rather difficult position. The company
does not historically release more than one major game per
console per month. Thus, it could mean that The Legend of Zelda:
The Wind Waker remake -- which is currently slated for release in
-- will not arrive on time.
While a September release could happen (and would technically
fall within the third quarter period), Nintendo is notorious for
That said, Nintendo is not a company that should be
underestimated. While the Pikmin 3 delays are not a good sign,
the Japanese gaming giant excited consumers earlier this year
when it announced a
plethora of new games
. None of them received any release dates, but Nintendo said that
it would show off new chapters in both the Mario and Mario Kart
series, and promised that the former would be released in
With so much potential left in Wii U, it could be really easy
to buy into that hype.
Unfortunately, investors know all too well that Nintendo is
not good at keeping promises. Now that delays -- not game
releases -- are leading the charge for Wii U, it is becoming more
and more difficult to get excited about the console's future.
Louis Bedigian is the Senior Tech Analyst and Features Writer
of Benzinga. You can reach him at 248-636-1322 or
louis(at)benzingapro(dot)com. Follow him
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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