Nintendo is looking at a third consecutive year of financial loss as company president Satoru Iwata’s internal approval rating slumps. That’s according to a new Nikkei report, which claims the prominent executive faces a tough challenge in June, when the board decides whether to elect a new company leader, or keep Iwata in the role.
It follows our opinion piece about why it is now time for Iwata to stand down from his role.
The Nikkei report, re-purposed by Siliconera – states that Iwata is headed towards a “June of trials,” as his internal approval rating at the company has fallen from 92.89% to 77.26%, as comprised by Nintendo’s board of directors.
This could refer to Nintendo’s General Meeting of Shareholders, which takes place every June, and looks to keep its current president or re-elect a new company head. It is implied that Iwata’s place on the board is in question.
Nikkei added that attempts to reinvent the company seem to have fallen by the wayside. It claims that one Hong Kong investor suggested that Nintendo move into smartphone games, to which the company reportedly responded, “are there any companies that make smartphone games while continually sustaining high profits?”
It is believed that for the fiscal year ended March 31, 2014, Nintendo could post a loss of ¥35 billion which, if accurate, would mean a slight improvement over the previous year’s ¥36.4 billion loss. It will be the third consecutive year of loss for the company. It is believed that the company currently has ¥500 billion in reserve.
The report adds that a Chinese investment company, that has been tasked with analysing Nintendo’s business, suggested that it, “ought to actively put their characters and other assets to use.” It follows plans to build a Nintendo theme park in Kyoto, Japan, but little has been heard of the matter for some time now.
It is unclear if the details within Nikkei’s report will come to light officially, but we’ll keep our eye on Iwata’s approval within Nintendo ahead of the June director’s meeting.