Nintendo's top three-quarter deficit president pays 4 months ' pay cut

Nintendo in the first three financial quarter of the big loss Tencent technology Ming Xuan January 29 compiled Nintendo Wednesday released the company this fiscal year, the first three financial quarter earnings. The results show that Nintendo's first three-quarter operating losses amounted to 15.8 billion yen (about $15.3 million trillion), affected by the dismal sales of the flagship video game console, Wii U. Nintendo is under increasing pressure to adapt to the rise of smartphone gaming. In the meantime, Nintendo announced a share buyback, and President Rock Iwata will receive a 50% salary in 4 months. The move is clearly aimed at reassuring disappointed investors. Nintendo, the world's largest video-game company, said it had run a loss of 15.8 billion yen in the first three quarters of the year, operating at a loss of 58.6 billion trillion yen in the same period. Two weeks ago, Nintendo, headquartered in Kyoto, Japan, just lowered its forecast for the fiscal year. Nintendo said at the time that the fiscal year ended March 31 this year, the company operating losses will reach 35 billion yen, less than the previous expected operating profit of 100 billion yen. Nintendo's net profit in the first three quarter was 10.2 billion yen, less than 14.55 billion yen a year earlier, while revenue fell 8% per cent year-on-year. The company expects the company's losses to widen further with the double impact of the quarter's revenue fall and the yen's appreciation. "Our performance is totally out of reach, and management has a huge responsibility," says Iwata. I think we should assume some form of responsibility for that. "The big holiday shopping season at the end of last year and the launch of a series of new games have not allowed Nintendo's performance to reach its predicted height," he said. Nintendo currently expects the company to sell only 2.8 million Wii U in the current fiscal year, which is less than the original forecast of One-third; the Wii U game software sold for 19 million, just half the estimated April last year. Nintendo sold only 2.4 million Wii U in the first three quarters of December 31. Rock Iwata admitted in a Wednesday press conference that he needed to reinvent the Wii U business. The failure of the Nintendo game in the US market has had a huge impact on the company's performance, Iwata said. Although Nintendo has cut the price of the Wii U, it has not solved the problem. Rock Iwata said, "Wii u The most critical problem is the atmosphere, the lack of excitement point." "In addition, the video gaming industry is currently facing the siege of free or cheap games for PCs, tablets and smartphones." Investors and market analysts have called for Nintendo to change its strategy, opening up games such as Super Mario and The Legend of Zelda to smartphone platforms. Some investors have said that the release of Nintendo's awesome game content into mobile apps can increase the company's share price by one or twice times. Nintendo's share price has fallen by 13% per cent since the January 17 downgrade. The company's shares rose 1.3% on the Tokyo Stock Exchange in Wednesday. Paul Teren Paul The US video game developer Big Fish Games CEOLen points out that many gaming companies have made a mistake by ignoring market changes or by quickly abandoning traditional businesses. Tren that while the Nintendo adjustment business model will make loyal fans uneasy, Nintendo needs to adjust. "To compete in a new market, you have to choose the right direction," he said. Trying to build hardware and have a proprietary software system makes it hard to win. "In defiance of smartphones and tablets, Nintendo has so far argued that its success stems from building hardware and providing a unique gaming experience." Nintendo had previously said that sharing the gaming experience with smartphone users would stifle the company's advantage and discourage gamers from buying Nintendo's equipment. Nintendo is now considering the issue of offering free games to smart devices to scramble for user time. Rock Iwata said earlier this month that he was looking for ways to promote Nintendo games on mobile phones and tablets, such as the launch of the demo. "TV commercials alone can't convince consumers to buy our products," Iwata said at the time. Today's users need more information, and too many different things are now competing for consumer attention. Nowadays, it is becoming more and more difficult for consumers to notice our products. "There are also some investors who think Nintendo will not significantly adjust its strategy in the short term." "We expect Nintendo will slightly challenge corporate strategy as smartphones and tablets become more popular, but the basic tenet of the business model will not change," said Michael Lindsell, investment company Lindsell Train portfolio manager Michael Linde. Lindsaid, who has been bullish on Nintendo for 13 years, believes Nintendo can find a way out of the current crisis. "We think Nintendo is going to get out of this recession," he said. Most of Nintendo's products are revolutionary. The company's products are more revolutionary than their competitors ' products. ”