As expected, Nintendo has released its financial results from the first half of the fiscal year ending September 30, 2011, and the company's losses are sizable. Though it isn't quite the 100 billion yen ($1.32 billion) predicted yesterday, the income loss of 70.29 billion yen ($927 million) has hit Nintendo hard enough to seriously revise its full year forecast.
Nintendo's modified forecast counts on 790 billion yen ($10.4 billion) in net sales instead of the previous forecast of 900 billion yen ($11.9 billion). The bigger hit comes to operating income, which went from a prior forecast of 35 billion yen ($462 million) down to only 1 billion yen ($13 million).
In a statement accompanying the results, Nintendo credits the loss to a decrease of hardware and software sales, price reductions on the 3DS and Wii, and a stronger yen against the US dollar. The bright spot seems to have been the Legend of Zelda: Ocarina of Time remake for 3DS, but it's lonely at the top and the lack of hit titles accents Nintendo's struggles with the 3DS hardware.
"As regards the 'Nintendo 3DS' software, 'The Legend of Zelda: Ocarina of Time 3D' became a million- unit seller; however, 'Nintendo 3DS' has yet to have many hit titles," the statement read. "The worldwide sales of 'Nintendo 3DS' software resulted in 8.13 million units. Since a significant price revision made in and out of Japan in August, 'Nintendo 3DS' hardware sales have been improving. Nintendo is preparing to release a solid software line-up for the year-end sales season."
This holiday will bring both Super Mario 3D Land and Mario Kart 7 to the system. While both franchises are traditionally popular and we're heading into the gift-giving season, Nintendo seems to be playing it safer with their predictions in light of the losses.