Nintendo Suffers Q2 2012 Losses, But Not as Bad as Expected
July 25, 2012 1:21 PM
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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.
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
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
, 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.
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7/26/2012 4:33:37 AM
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.
7/26/2012 9:39:59 AM
Tahnk you for reminding me about Maniac Mansion. Good times!
7/26/2012 12:59:23 PM
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.
8/2/2012 7:24:45 AM
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.
"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins
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