Nintendo Suffers First Annual Loss in Three Decades
The Los Angeles Times reports that Nintendo has suffered an annual loss of over $500 million dollars, the first loss in 30 years.
Quote:
Nintendo on Thursday posted losses of more than $500 million for its fiscal year -- its first annual loss since the Japanese gaming company began publicly reporting its financial results in 1981.
The maker of Mario and Zelda games in January telegraphed that it would post steep declines in sales and a substantial loss for the year ended March 31. Thursday's results were roughly in line with its grim forecasts, as both sales and losses came in slightly lower than expected.
The Kyoto company, which manufactures the Wii and DS game consoles, recorded a $534.6-million loss on $8 billion in revenue, compared with a $960.5-million profit on $12.6 billion in sales the year before. On Jan. 26, Nintendo warned investors that it would likely post a $804.3-million loss on $8.2 billion in sales.
i don't get how they're as successful as they are and yet always seem on the brink of destruction.
while i didn't buy a wii, and i don't plan on buying the wii v1.2, i still consider myself a fan of these guys.
while companies like blizzard, sony and bioware have managed to lose my loyalty, nintendo has yet to pull a dick move big enough to roll my eyes.
Nintendo will be fine, they have been hit by the strong yen and the 3DS price cut. In the IR briefing Iwata stated they should begin to turn profit on 3DS by end of summer.
In BIGGER news, Iwata announced Nintendo's digital distribution plans and the service goes live in August with downloads of packaged games. The only announced game so far is new super Mario bros 2. He also annouced digital downloads of games on day one of WiiU launch.
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Also, it seems like the 3DS is still selling above the cost of manufacture. A rarity for Nitty. I read something like March 2013 before they make a profit on that hardware.
Also, I read that this was the first annual loss in *their entire history* not just the last 30 years.
EDIT: I Read the article again. They are saying it will be profitable in 6 months.
First world Nintendo problem because when everyone already owns one.
Apparently there were 10 million people who didn't:
The Wii may be in fast decline, but the year leading up to March 31 was hardly a dry period for the platform. 9.84 Million hardware units were sold worldwide, backed up by 102.37 million software units.
Pretty frickin respectable. Nearly half of the loss was just to exchange rates; harsh.
I'm actually kinda tired of Nintendo repackaging nostalgia over and over. That and motion controls are just annoying for me. Let's get some new innovation up in there!
Serves them right for getting fat and lazy. Success made them arrogant, and now they're starting to reap the reward thereof. You think they would have learned from Sony's example the fate of those who allow their market leader position to blind them to the wolves chasing from behind.
I'm actually kinda tired of Nintendo repackaging nostalgia over and over. That and motion controls are just annoying for me. Let's get some new innovation up in there!
I think no-glasses 3D was pretty fracking innovative. If it wasn't for the high cost both my kids would probably already own one. I think they got hurt because once you spend $200 each on a DSi you don't want to do it again for a 3DS and both my kids DSi's work just fine.
When you make hardware that doesn't break down every 30-seconds (ie, Xbox 360) people aren't in a big hurry to upgrade.
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Serves them right for getting fat and lazy. Success made them arrogant, and now they're starting to reap the reward thereof. You think they would have learned from Sony's example the fate of those who allow their market leader position to blind them to the wolves chasing from behind.
Sony STILL hasn't learned from their own mistakes. Why should Wintendo?
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Quote:
Originally Posted by Capt_Thad
heh I believe you may be suggesting that giving up used games in favor of exclusive 3rd party support excites you sexually.
Serves them right for getting fat and lazy. Success made them arrogant, and now they're starting to reap the reward thereof. You think they would have learned from Sony's example the fate of those who allow their market leader position to blind them to the wolves chasing from behind.
They did learn, thats why they're releasing the Wii-U as soon as the Wii is losing its (Insane) steam and why they took the "embarrassing" route of dropping the 3DS price by $80 less than 4 months since launch.
Since then the 3DS is now back to being the best selling console EVER in the time period its been out and we'll see what the Wii-U has going for it at E3. This was a rough year for nintendo, but one loss in 30 years is not going to kill a company that has been constantly making money for 30+ years.
Also, if you read the article, 50% of the money loss was simply due to the fact that the Yen is currently devaluing at an alarming rate.
