Nintendo Announces Poor Q1 Earnings, Offers 3DS Price Cut After Weak Sales
July 28, 2011 10:05 AM
comment(s) - last by
Nintendo President Satoru Iwata
The 3DS price will be cut from $249.99 to $169.99 on August 12
Nintendo has had an exciting year so far with the release of its portable Nintendo 3DS and the announcement of the Wii U console. But after releasing its
fiscal first quarter results
today, Nintendo saw very few financial highlights.
According to Nintendo's Q1 financial results, it posted a net loss of 25.5 billion yen ($324 million) in the quarter ending June 30, 2011. During the same quarter one year earlier, the net loss was 25.2 billion yen. Its operating income was at 37.7 billion yen in the April to June 2011 quarter, up from 23.3 billion yen in April to June 2010.
Nintendo is clearly having a rough time, and it
blames the poor sales
of both the 3DS and Wii titles for its financial downfall. According to its financial report, 710,000 3DS units have been sold between April and June 2011, bringing the total number sold to 4.32 million (830,000 in the U.S. total). This was a major disappointment for Nintendo, considering it was hoping to sell that many within the first weeks following the 3DS' launch in March 2011.
To remedy this, Nintendo is slashing the
price of the 3DS
from $249.99 to $169.99 starting August 12.
In addition, Nintendo will offer anyone with a 3DS that connects to the Nintendo eShop via wireless connection a chance to be registered in the
Nintendo 3DS Ambassador program
. All the 3DS owner has to do is connect to the eShop at least once before 11:59 p.m. ET on August 11.
Once registering as a 3DS Ambassador, users can download 10 NES Virtual Console games starting September 1, before they roll out to the public. This includes games like "Donkey Kong Jr.," "The Legend of Zelda," and "Super Mario Bros." Even when the paid versions of these games are released to the general public, they will remain free for Ambassadors.
Before the end of the year, Nintendo will give Ambassador's another 10 free picks from the Game Boy Advance Virtual Console catalogue, which features games like "Super Mario Advance 3," "Yoshi's Island," "Metroid Fusion," and "Mario Kart." For this particular perk, Nintendo adds that these titles will never be released to the general public, making it a special offer for Ambassadors only.
"For anyone who was on the fence about buying a Nintendo 3DS, this is a
huge motivation to buy one
now," said Reggie Fils-Aime, Nintendo of America president. "We are giving shoppers every incentive to pick up a Nintendo 3DS, from an amazing new price to a rapid-fire succession of great games."
Even with such incentives, Nintendo's recent financial loss prompted it to reduce its annual profit forecast 82 percent to 20 billion yen ($257 million) for the fiscal year to March 2012.
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RE: *phone ringing* Hello, Nintendo?
7/28/2011 2:47:43 PM
Totally agree. I am a self-admitting foolish gamer who was duped by Nintendo into buying the Nintendo 64, Gamecube, and Wii, the DS and the DS Lite. For many, Nintendo rides the nostalgia wave based on their success with the original NES and Super NES. This was the reason I bought a Wii, but their offerings on the virtual console have slowed and I still am without dozens of classics (argubly bad, but I still want). The lack of quality games in their respective generations have ultimately killed the systems longevity. Nintendo foolishly rode the Wii wave success based on their casual games. But since everyone has those games, software sales are way down because they don't have a lot of games people want. The games that people might buy don't because they are available on the PS3 and Xbox 360 and of course those are the versions serious gamers want. Nintendo always gets stuck with the watered down version. Even with the release of the Wii U, it will be eclipsed within a year when the PS4 or Xbox 720(?) comes out. However, I will admit, now that the 3DS is dropping down to $170, I could become a future owner if I can get some of the games for cheap. Duped again?
"This week I got an iPhone. This weekend I got four chargers so I can keep it charged everywhere I go and a land line so I can actually make phone calls." -- Facebook CEO Mark Zuckerberg
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