Despite the success of the 3DS, Nintendo still managed to trundle towards its third straight annual operating loss. Sales of the Wii U in overseas markets appear to be the culprit and Nintendo President Satoru Iwata is bearing the brunt of this news. "If we stay in one place," he said, "we will become outdated."
Nintendo had initially estimated it would sell 9 million units of the Wii U in the year to march, but has subsequently slashed that forecast to 2.8 million — a sizeable readjustment. Satoru Iwata in response stated that he had misread the market. Nintendo needs to change, he informed investors, and propose something that "surprises" customers.
The Wii U has struggled since launch, but in the wake of a year of quality releases from Nintendo, it's struggling to reverse the tide and its share price is falling. The 'Nintendo is doomed' narrative is moving from the forums to investing circles, with many asking if Nintendo should be experimenting with different models such as free-to-play or mobile gaming. Iwata seemed to suggest that Nintendo may be on the brink of some sort of change within its model — Iwata is said to be considering a "new business structure" but neglected to mention what the structure would look like.
Iwata is said to be taking a pay cut in response to Nintendo's issues, but won't be stepping down as the company's President.