Nintendo Suffers Q2 2012 Losses, But Not as Bad as Expected
July 25, 2012 1:21 PM
comment(s) - last by
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.
This article is over a month old, voting and posting comments is disabled
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.
"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs
Nintendo CEO: 3DS Sales "Weak" in U.S., Europe
July 5, 2012, 1:30 PM
Nintendo to Release Larger 3DS XL in Japan Next Month, U.S. in August for $199
June 22, 2012, 10:46 AM
Nintendo Introduces "Miiverse" Social Network
June 4, 2012, 11:00 AM
Nintendo Revenue Plummets, Posts Annual Loss for the First Time
April 26, 2012, 10:37 AM
Nintendo Celebrates 3DS Birthday with 4.5 Million Sales Milestone
March 7, 2012, 6:27 AM
Xiaomi Moves Data Out of China to Woo EU, America, Escape Security Concerns
October 23, 2014, 5:11 PM
Android Wear’s First Major Update Brings GPS, Offline Music Support
October 23, 2014, 1:34 PM
Samsung Announces Galaxy S5 Plus with Snapdragon 805 Processor, LTE-A
October 22, 2014, 3:40 PM
Motorola Further Increases Moto 360 Battery Life with New Update
October 22, 2014, 8:08 AM
Apple's iPad Air 2 Features Triple-core A8X Processor, 2GB of RAM
October 21, 2014, 8:32 PM
Toshiba Launches 11”, 2-in-1 Convertible PC for $329
October 21, 2014, 2:11 PM
Most Popular Articles
Chinese Government Declares Digital War Against America's Top Tech Firms
October 20, 2014, 12:07 PM
Report: 2015 Ford Focus Electric MSRP Slashed by $6,000, Will Retail for $29,995
October 18, 2014, 6:23 PM
Apple Releases iOS 8.1; Adds Apple Pay Support, SMS Relay, Instant Hotspot
October 20, 2014, 1:00 PM
Windows 8.1 + Android "Sell Mini PC" w/ Bay Trail Creates New PC Form Factor
October 20, 2014, 5:07 PM
Update: Motorola Droid Turbo Coming Oct 28, 48-hour Battery Life Confirmed
October 19, 2014, 9:19 PM
Latest Blog Posts
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information