Nintendo Reports Large Annual Loss

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NintendoNintendo announced its financial results for the fiscal year ended March 31, 2012. The numbers aren't good, but read on for more details...
For its fiscal year ended March 31, 2012, Nintendo announced a net loss of ¥43.204 billion. That compares to net income of ¥77.621 billion in the previous year. Nintendo noted that its net sales compared poorly to the previous year thanks to a decrease in sales of the Wii and DS consoles.

Nintendo managed to sell 13.53 million units of the recently launched 3DS system, largely thanks to the major price drop on the system. That price cut may have Nintendo selling the 3DS below cost, which would explain why Nintendo emphasized the price cut as a factor in the company's dramatically reduced sales figures. This is the first time in a long time that Nintendo has really looked to investors like it is on the ropes. Digital distribution is hurting the traditional console sales model, and the 3DS hasn't turned out to be the go-to gimmick that Nintendo had hoped, in the same way that the DS took handheld gaming by storm. The surge in tablet and smartphone gaming, obviously hasn't helped Nintendo's previous dominance of the handheld market.

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This page contains a single entry by Editor published on April 26, 2012 7:41 PM.

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