Nintendo to Report Huge Loss

According to Japanese newspaper Nikkei, Nintendo is expected to report a ¥100 billion ($1.32 billion USD) loss for the fiscal first half (April to September), almost twice the ¥55 billion pretax loss originally predicted by Nintendo. Nikkei cited exchange rates as a large contributing factor to the loss.

Previously Nintendo reported a ¥25.5 billion ($324.1 million) net loss for the fiscal quarter that ended on June 30. This places the company at a ¥74.5 billion ($979.97 million) loss for last quarter.
Nintendo’s current guidance projects predicts ¥175 billion ($2.3 billion) in revenue for the quarter ending September 30, while analysts predict a ¥146 billion ($1.91 billion) revenue.

Analysis: Clearly that’s a huge amount of red, and it’s no secret Nintendo’s trailed behind in the console department. While the DS did do quite well and still got some solid releases after the 3DS came out, the price drop on the 3DS earlier this year when it hadn’t been out for even a year was far from an auspicious sign of the company’s finances and the 3DS’s performance. Nintendo has weathered storms like this and will be able to pull through this as well, but not without stepping up its software support and ensuring that the 3DS—and the Wii U when it comes out—have more titles to entice people to pick up both systems.


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