Print 13 comment(s) - last by inperfectdarkn.. on Aug 2 at 7:24 AM

Nintendo had a net loss of 17.23 billion yen in the quarter ended June 30, 2012

Nintendo announced a net loss and drop in revenue in its Q2 2012 quarterly earnings report, but the video game giant has seen worse days.

According to the earnings report, Nintendo had a net loss of 17.23 billion yen in the quarter ended June 30, 2012. However, the good news is that the company's net loss was 25.52 billion yen during the same time period last year, meaning that Nintendo is doing a bit better these days.
Nintendo also posted a 9.7 percent decline in revenue to 84.81 billion yen. The reason for the losses? A strong yen and slow sales of its Wii gaming console, according to reports. 
Nintendo has also faced a lot of issues with its portable 3DS over the past year. The handheld was released in March 2011 and initially had poor sales due to a lackluster lineup of titles (says Nintendo). This led to the company's decision to slash the price from $249.99 to $169.99 in August 2011. 
From there, 3DS sales boomed (especially in Japan), and by March 2012, Nintendo celebrated the 3DS' one-year anniversary with 4.5 million sales
But the 3DS has been up and down with its sales. Earlier this month, Nintendo CEO Satoru Iwata said 3DS sales in the U.S. and Europe were "weak." Also, the company posted its first annual loss ever in April 2012, where it suffered a 37.3 billion yen operating loss and a net loss of 43.2 billion yen. 
But Nintendo has a lot to look forward to this year. For instance, the company will release its new Wii U gaming console that features a controller with a 6.2-inch screen, an accelerometer, gyroscope, microphone, speakers, stylus, front-facing camera, sensor strip and rumble support. With the Wii U's release will also come Nintendo's own social network called Miiverse
Another new addition to the Nintendo family is the 3DS XL, which is a larger version of the 3DS available for $199 in Japan this month and in the U.S. next month.
Despite all of these new releases, it remains to be seen how Nintendo will fare against not only other gaming companies like Microsoft's Xbox division (which attracts core gamers more so than Nintendo), but also against mobile device makers for gaming on smartphones and tablets. 
Looking ahead, Nintendo predicts a net profit of 20 billion yen, an operating profit of 35 billion yen and revenue of 820 billion yen for the year through March 2013. 

Source: Nintendo

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By aurareturn on 7/25/2012 5:50:47 PM , Rating: 1
Nintendo releases a console, makes a few high quality games for it, teases customers by saying 3rd party developers are all on board(never the case), and then totally abandons the console towards the end.

Gaming in general, is moving towards mobile and iOS and Android are going to take over in my opinion.

It won't be long until Apple or Google releases a wireless controller add-on and turn any phone into a home gaming console. Phones nowadays can produce Unreal Engine 3-like graphics anyways.

PS4, Wii U, Xbox Next will be the last true traditional consoles.

RE: Nintendo
By tarv on 7/25/2012 9:25:51 PM , Rating: 2
I think alot of people are jumping the gun on mobile phones & gaming. Most people use their phone as a communication device still. Now if a phone becomes powerful enough to actually plug into your tv and run 1080p visuals with all the bells and whistles, that would be something.

RE: Nintendo
By ShaolinSoccer on 7/26/2012 1:53:01 AM , Rating: 2
Now if a phone becomes powerful enough to actually plug into your tv and run 1080p visuals with all the bells and whistles, that would be something.

It's getting there:

RE: Nintendo
By TakinYourPoints on 7/26/2012 3:34:00 AM , Rating: 2
Now if a phone becomes powerful enough to actually plug into your tv and run 1080p visuals with all the bells and whistles, that would be something.

You don't even need to plug in, iDevices can do this wirelessly to a TV over AirPlay

RE: Nintendo
By Paj on 7/26/2012 7:28:24 AM , Rating: 2
Wireless streaming isnt the big deal - Android can do it over AirSync.

When a phone can transform and shade as many pixels as an Xbox 360, then youre talking.

RE: Nintendo
By inperfectdarkness on 7/26/2012 4:33:37 AM , Rating: 3
Don't blame Nintendo. If you think the Wii is incapable of generating gaming fun, then you haven't really played games like Mario Galaxy. It's all 3rd party fault--and by extension, MS/Sony. MS is the reason I still can't get DK 64 on VC store download. And let's not forget that 3rd parties don't make ground-breaking games like they used to (Contra, Bionic Commando, Harvest Moon, Maniac Mansion).

I have high hopes for Wii-U. With a touch-screen controller interface, my dreams of playing DS-games on the big-screen may finally come true.

RE: Nintendo
By arazok on 7/26/2012 9:39:59 AM , Rating: 2
Tahnk you for reminding me about Maniac Mansion. Good times!

RE: Nintendo
By astralsolace on 7/26/2012 12:59:23 PM , Rating: 2
Microsoft is the "reason" you can't get DK64 much in the same way that Nintendo is the "reason" you can't play Zelda on the 360. Rare is owned by Microsoft, and Zelda was developed by Nintendo.

Best solution is for Nintendo to get out of the business of making hardware.

RE: Nintendo
By inperfectdarkness on 8/2/2012 7:24:45 AM , Rating: 2
dk64 contains characters wholly owned by nintendo. zelda contains characters wholly owned by nintendo. your logic = fail.

the best solution for CONSUMERS is for MS/Sony to stop being anti-competitive and let the market decide. unfortuanately, that would also mean that one or both of them would go out of business.

the best solution will NEVER be for nintendo to get out of the business of making hardware. gaming innovation doesn't happen without nintendo. you must be living under a rock.

Why give these numbers in Yen?
By tayb on 7/25/2012 6:41:08 PM , Rating: 5
I doubt there is a single person reading this who knows off hand the conversion rate of dollars to yen. Why give the amounts in yen? To sensationalize the headline? Come on. You guys are better than that.

RE: Why give these numbers in Yen?
By Manch on 7/26/2012 5:28:32 AM , Rating: 2
I do, but thats because I travel a lot. Im the exception rather than the rule though. its about 78 yen to a dollar. It was 115 to 1 when I moved there in 2001, and about 120 to 1 when I left in 2004. each time Ive gone back though as the dollar has weakened, and the yen stronger, the disparity has been magnified. With what I was getting paid, Im glad the exchange rate wasnt what it is now! It wasnt in the main title, so i dotn see what's the big deal

RE: Why give these numbers in Yen?
By Paj on 7/26/2012 7:31:16 AM , Rating: 2
Why give the amounts in yen?

er.. because theyre a Japanese company? Because exchange rates fluctuate over time? Because you're too lazy to convert the amount online?

By nemoshotyany on 7/27/2012 11:51:14 AM , Rating: 2
It converts to roughly $220 Million.

"Game reviewers fought each other to write the most glowing coverage possible for the powerhouse Sony, MS systems. Reviewers flipped coins to see who would review the Nintendo Wii. The losers got stuck with the job." -- Andy Marken

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