Shackpets | Available on iOS and Google Play Store

Nintendo posts $927 million loss

Nintendo has posted its fiscal results from the first half of the year, and it includes an income loss of 70.29 billion yen ($927 million). As a result, Nintendo has revised its forecast for the year.

13

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.

Editor-In-Chief
Filed Under
From The Chatty
  • reply
    October 27, 2011 8:15 AM

    Steve Watts posted a new article, Nintendo posts $927 million loss.

    Nintendo has posted its fiscal results from the first half of the year, and it includes an income loss of 70.29 billion yen ($927 million). As a result, Nintendo has revised its forecast for the year.

    • reply
      October 27, 2011 8:25 AM

      Wasn't that better than what it was forecasting just last week by $300 million? I seem to remember $1.3 billion being tossed around.

    • reply
      October 27, 2011 9:12 AM

      "It's not... it's not printing money anymore!"

      I'm getting sick of the "yen is too strong" excuse that every exporter is using. Carlos Ghosn of Nissan is flat-out threatening to pack up and leave Japan. I have a hard time feeling sympathy for the companies complaining about the strong yen when the dollar is gradually inflating.

    • reply
      October 27, 2011 9:17 AM

      It's about time. Take that crappy hardware makers. Your cheap hardware is an insult and set the entire industry back 3 years.

      • reply
        October 27, 2011 9:22 AM

        Um, no it didn't, it just pulled a lot of potential profit off the table. The standard for the last 5 years has been the 360/PS3.

        • reply
          October 27, 2011 11:02 AM

          Exactly. I would have rather that profit go into companies that push the boundaries of experience. Sure, Nintendo came out with the Wiimote, and it worked reasonably well - but photoshopping a kitten into a Holocaust picture doesn't make the picture more appealing.

          Keep in mind I suck at analogies.

          • reply
            October 27, 2011 11:12 AM

            If you're talking about over to AAA devs or MS/Sony they got and are getting basically everything they would have gotten. Nintendo is the one who shafted themselves by not making a graphically competent system.

      • reply
        October 27, 2011 9:48 AM

        I guess you mean 'crappy' in terms of horsepower? Because last I checked, Nintendo are the only remaining manufacturer with hardware that isn't fragile like an anorexic Victorian noblewoman.

        • reply
          October 27, 2011 10:57 AM

          Haha, yeah, I mean as in "technology." With greater risk comes greater reward, as they say.

    • reply
      October 27, 2011 9:21 AM

      Shame. Hope their next console doesn't suck, though I have low expectations.

      • reply
        October 27, 2011 9:22 AM

        I will probably get it on launch day. I'll let y'all know how much it sucks.

        • reply
          October 27, 2011 10:47 AM

          I hope it does well and has some lasting power, I've always been a big Nintendo fan. Disappointed that I don't play it near as much as my DS or other consoles.

          • reply
            October 27, 2011 10:53 AM

            Agreed, I would love to see Nintendo do well, it just might have issues weathering the next gen given how much good will it consumed last gen.

    • reply
      October 27, 2011 9:53 AM

      Do any of you expect any wild changes to the Wii U before its launch? I wouldn't be surprised to see some controller changes (smaller screen maybe). The big question seemed to be if the system could support more than one of those fancy controllers, and I think the response was basically that they could do it but the cost of the controllers is prohibitively expensive.

      • reply
        October 27, 2011 10:09 AM

        I don't care if they were $125 a pop I would prefer support for multiple controllers over just the one. That being said, I don't think they have to be prohibitively expensive, given they minimal processing power used on the actual controllers, though it may require the Wii-U be considerably more powerful. Next gen is going to be very interesting I think, not quite as interesting as this gen has been but considerably more so than prior gens.


        gen, gen gen gen, gen gen-gen. _gen_

    • reply
      October 27, 2011 10:56 AM

      I'll be interested to come back in a few months and see what the latter half of the fiscal year gets them. The 3DS price drop, Zelda, and the Mario titles should pull them out of this tail spin ("should" being the key word).

    • reply
      October 27, 2011 11:27 PM

      They're biggest issue is the 3rd party support problem, for one. And imho (which I KNOW is in the minority, most likely) they're lack of new IP and a constant reliance on REALLY tired old franchises that (at least for me) are super boring at this point. :(

    • reply
      October 27, 2011 11:33 PM

      Is it cruel if I lol this?

    • reply
      October 27, 2011 11:53 PM

      [deleted]

    • reply
      October 27, 2011 11:54 PM

      Xenoblade needs an NA release

      • reply
        October 27, 2011 11:59 PM

        Does the Wii even have any big game coming out after Skyward Sword? If not, that's going to be a long gap till Wii U.

Hello, Meet Lola