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Report: Nintendo to post $1.32 billion loss tomorrow
by Steve Watts, Oct 26, 2011 7:45am PDTNintendo has forecast a loss off 55 billion yen (approximately $725 million) for the first half of the fiscal year ending on September 30, but Japanese newspaper Nikkei business daily claims the loss could be as high as 100 billion yen ($1.32 billion). Nintendo's shares took a 7.5% hit after the news broke, to 10,800 yen ($142).
Reuters cites sluggish sales of the 3DS due to the increased competition of smartphones as one cause of the loss, as well as difficulties due to the strength of the yen. Nintendo declined to comment on the report to Reuters, but the full earnings are due tomorrow.
Nintendo has had a strong hardware backbone over the last few years, but that position has been weakening lately. The Wii is in its twilight years with fewer new games hitting while the company focuses on the Wii U. The 3DS, which could have carried the company through the waiting period if it had sold like the original DS, sold slowly enough to warrant a heavy price reduction within months of its release.
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Nintendo is expected to pose a loss of 100 billion yen ($1.32 billion) tomorrow, much higher than the company's previous forecast of 55 billion yen.
Nintendo is expected to pose a loss of 100 billion yen ($1.32 billion) tomorrow, much higher than the company's previous forecast of 55 billion yen. : Shacknews
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And despite the fact that the Wii sold like gangbusters, there were really extremely few third-party titles that were big successes on the Wii (less than 5 Oh shack and your less than bug, you almost tricked me).
Combine those and I suspect you're basically only going to really see first party titles on the Wii U, and I'm not sure that'll be sufficient to actually entice most people to purchase one.
Of course, the upside is that I suspect the Wii U will be profitable from the get go as previous Nintendo consoles have been, so maybe they'll pull an upset.
* I have no inside information here, this is purely speculation based on time frame.
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