Nintendo posts large Q1 loss, but 3DS now profitable

Nintendo has issued its Q1 earnings for the fiscal year, posting another large loss. But, Nintendo announced that the 3DS has become profitable, after selling at a loss due to its large price cut.

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The Japanese gaming giant is continuing to struggle. After posting a tough annual loss earlier this year, the first quarter of its new fiscal year is also in the red.

The company reported a net loss of approximately 17 billion yen ($221 million). The company's fiscal year forecasts remain the same, aiming to sell 18.5 million 3DS consoles and 10.5 combined Wii U and Wii consoles.

On the bright side, the company sold 1,860,000 3DS systems during the period, which was up from the same period last year. And, unlike last year, the company has announced that the 3DS is no longer selling at a loss since its drastic price cut. That means that each 3DS sold is now adding money to Nintendo's coffers, instead of subtracting it, which should give the company a better outlook for the remainder of the year.

Eurogamer reports that 7.39 million 3DS games were sold in Q1, compared to only 4.53 million last year. Wii sales are slowing considerably, though, with only around 700,000 unit sales during the period.

Nintendo is counting on continued success of the 3DS through the holiday season, especially with its upcoming hardware revision, and the launch of the Wii U to carry it through this fiscal year.

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  • reply
    July 25, 2012 2:00 PM

    Steve Watts posted a new article, Nintendo posts large Q1 loss, but 3DS now profitable.

    Nintendo has issued its Q1 earnings for the fiscal year, posting another large loss. But, Nintendo announced that the 3DS has become profitable, after selling at a loss due to its large price cut.

    • reply
      July 25, 2012 2:07 PM

      a positive per unit margin, but the total hardware sales margin is still negative from all the losses taken on prior unit sales

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