Nintendo’s Earnings See 70 Billion Yen Loss

It was expected that Nintendo were going to have a rough couple of months after the release of the new 3DS console – everyone knew it was going to happen. However, if we look back roughly 6 years ago, when the Wii was making its first début – sales prospects at Nintendo HQ were looking similar. It wasn’t only analysts who were sceptical that a console with such a ridiculous sounding name could ever do well, pretty much all of us thought it. Fast forward a few years, and the word ‘Wii’ is now part of our every day vocabulary. In fact, a report last year showed that 1 in 3 UK households now own a Nintendo Wii! So, before you read this financial report and start worrying that the 3DS and Wii U will mark ‘the beginning of the end’ for Nintendo, just remind yourself that it is still early days for the portable and that it can only get better from here…

Earlier today, Nintendo release the records of their earnings for the first half of the fiscal year, confirming the losses that industry analysts had been predicting after the launch of the 3DS.

A report by Japanese video games blogger, Andriasang, explains the losses in further detail;

For the six months spanning April 1 through September 30, Nintendo saw sales of 215,738 million yen, with an operating loss of 57,346 million yen and a net loss of 70,273 million yen.

The net loss was double the 35,000 million yen Nintendo had forecast back in July. Additionally, net sales were down from the original forecast of 240,000 million.
For the full year, Nintendo now expects net sales of 790,000 million yen, down from the 900,000 million forecast, operating income of 1,000 million yen, down from the 35,000 million yen forecast, and a net loss of 20,000 million yen, down from the forecast net gain of 20,000 million yen.

Here is the run-down of hardware and software sales:

When looking into the causes of this net loss, Nintendo have stated that the strength of the Japanese yen was a major issue and one of the main problems behind their poorer sales. The company have also blamed the price drops for hardware as another reason behind the smaller profit this quarter, yet since the 3DS price cut, sales for the console and its games have undoubtedly been steadily increasing.

For a full look at all of Nintendo’s sales figures from the past 6 months, click on this link to see the official document.

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