Posted on Thursday 26-Jan-2012 9:55 AM

Nintendo now expects £535 million annual loss

Firm issues revised forecast following disappointing nine month financials

By Tom Ivan for computerandvideogames.com

Nintendo has more than trebled its loss forecast for the business year ending March 31, 2012, from the 20 billion yen (£165 million) expected back in October to 65 billion yen (£535 million).

Nintendo 3DS Screenshot
The news was delivered alongside disappointing financial results for the first three quarters, during which the company recorded net sales of 556 billion yen (£4.58 billion), down 31.2 percent year-over-year, and losses of 48.3 billion yen (£398.2 million), compared to a profit of 49.5 billion yen (£407.3 million) for the same period the previous year.

Nintendo blamed the loss on August's global 3DS price cut, a similar reduction in Wii's price, and the continued strength of the yen, Edge reports.

Worldwide 3DS sales in the nine months to December 31 totalled 11.43 million units, but have now surpassed 15 million mark, while Nintendo sold 8.96 million Wii systems in the first three quarters.

Following the release of its financial results, Nintendo president Satoru Iwata reiterated that Wii U will be available in Japan, Europe and the US by the end of 2012.

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computerandvideogames.com
Tom Ivan
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Comments

8 comments so far...

  1. Report this post Reply with quote
    Killermancarro on 26 Jan '12 said:

    have they checked behind the sofa?

  2. Report this post Reply with quote
    Aer0Smith360 on 26 Jan '12 said:

    s**te! That sucks! :shock:

  3. Report this post Reply with quote
    me4pd on 26 Jan '12 said:

    That's what you get for spending all your money on graphics chips. What's sadder is that teh graffx whores will always be distracted by the next new thing so it's just wasted money. Just build a machine with what's necessary for a select group of devs (subjective decision by Nintendo) and if other devs can't 'lower' themselves then they can go to hell.

  4. Report this post Reply with quote
    MPH on 26 Jan '12 said:

    Just imagine how much more they would have lost if they had included a second circle pad on the 3DS to start with. :wink:

  5. Report this post Reply with quote
    roland82 on 26 Jan '12 said:

    When a new console is in development is the most expensive time. All the extra research costs but no income. If the Wii U sells well they should be fine.

  6. Report this post Reply with quote
    Headsrinker on 26 Jan '12 said:

    Nintendo reduced the 3DS price because it was not selling very well. They cant then blame the price cut on this increased annual loss. If they hadn't of cut the price, the loss may have been even bigger. Surely some sales are better than no sales.

  7. Report this post Reply with quote
    ste hicky on 26 Jan '12 said:

    What's 535 million quid when you're sitting on an 18 billion dollar war chest for the forthcoming gen and your company has Zero debt?

    I doubt Nintendo will even notice it tbh. :)

  8. Report this post Reply with quote
    agentxnofx on 27 Jan '12 said:

    R&D aint free.