Amidst Fiscal Losses, Nintendo Founding Family May Pull Out

Category: Technology / Feb 03, 2014 3:17PM EDT

Welcome to 60 Sec Tech - one minute of what you need to know in the tech world.

Nintendo’s founding family, the Yamauchi, will sell their shares in the company. The Nintendo corporation will buy those holdings back at a value of 114.2 billion yen - equivalent to 1.1 billion US dollars. It’s unclear if the family will sell all of their shares, or just a percentage.

This may be the exit of the Yamauchi family, who have been involved since Fusajiro Yamauchi founded Nintendo in 1889. The company has been plagued by poor sales of the Wii U, but thanks to extremely strong sales of the 3DS, fiscal losses haven’t been as harsh as expected. In fact, Nintendo claimed that they had 8.6 billion dollars in cash and zero debt in September.

This means that Nintendo won’t be following in Sega’s footsteps out of the console market just yet. The company likely has enough on hand to weather another rough year, but they’ll need to sell more WiiUs to be taken seriously in the home console market.

That does it for today. Stay tuned for another episode of 60 Sec Tech.