Nintendo’s reported its first ever annual loss
Nintendo, traditionally, prints money. They tend to buck the loss-leader trend, instead selling their new console hardware for a small profit. The Wii and the DS pretty much printed money for the company, thanks to their mainstream and casual appeal.
Good times don’t last forever though – and the Japanese company’s had to post its first ever annual loss.
Impressively, it’s the first annual loss the company has ever reported – which isn’t too shabby for a company that’s been operating since 1889. In their latest finanical report, the Nipponese console maker’s managed to run up a US$455.9 million operating loss for the 2011 financial year. That’s a net loss of ¥43.2 billion (£328.7 million/$531.1 million). Ouch.
The biggest reason, beyond the fact that Wii sales have pretty much come to a standstill, is that the 3Ds is still being sold at a loss since its dramatic price cut last year – and with the numbers Nintendo’s new handheld’s been doing, it’s been putting quite a dent in the company’s financials. The good news is that Nintendo expects the the 3DS to actually be profitable from next year. There’s also that new super Mario Bros coming to the 3DS later this year, which will likely sell even more 3DS’.
Equally it expects its new console, the unfortunately named Wii U which sees release later this year to be popular- so much so that it’s banking on an operating profit of $429 million for this year.
You can read the entire report here.