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Nintendo Reshuffles After Missing Sales Targets By 50%
Nintendo reported a net profit of 7.1 billion yen (£46.8m/$71.4m) for the fiscal year which ended March 31, 2013, half of what it forecast in January, but still a significant improvement on the net loss of 43.2 billion yen (£285m/$434m) recorded just a year earlier.
Nintendo told us lifetime Wii U sales stood at 3.45 million units as of March 31, missing the companies most recent guidance of four million units, which itself is a downwardly revised forecast after the company initially targeted 5.5 million sales for the end of the financial year. Wii U sold three million units in calendar year 2012, meaning only 450,000 units were sold in the first three months of 2013. Nintendo also reported Wii U software sales of 13.42 million units, short of the 16 million forecast in January.
3DS hardware sales were weaker than expected too, coming in at 13.95 million units, short of the 15 million expected in January. 3DS software sales totalled 49.61 million units, just shy of the firm’s 50 million target. Lifetime 3DS sales now stand at 31.09 million units, and 3DS software sales at 95.03 million units.
As a result of the less than fantastic numbers, Satoru Iwata will take on the additional role of Nintendo of America CEO. Subject to shareholder approval, the current CEO, Tatsumi Kimishima, will transfer to the companies Kyoto headquarters and assume the roles of general manager of Corporate Analysis and Administration, and general manager of the General Affairs Division, titles currently held by retiring executives Yoshihiro Mori and Masaharu Matsumoto, respectively.
Many of Kimishima’s current responsibilities will be assumed by Iwata-san as Nintendo of America CEO. The platform holder said the move will “support the company’s unified global strategy, allow streamlined decision making and enhance Nintendo’s organisational agility in the current competitive environment”.
Never fear, loyal fans of the big N, Reggie Fils-Aime will continue in his role as president and COO of NOA, reporting to Iwata. His body is ready for his new boss.