Nintendo Reports Unhealthy Financial Report, Slices Up Profit Outlook
October 24, 2012 3:07 PM
comment(s) - last by
Nintendo hopes the Wii U will help with profits
Nintendo cut its fiscal-year profit outlook by over 50 percent in its latest earnings report -- and some of the other
financial numbers aren't looking too swift
For the six months ended September 30, Nintendo reported a net loss of Y27.99 ($350 million USD), which isn't as bad as the Y70.27 billion ($876 million USD) net loss the video game company reported a year ago. However, revenue took a tumble by 6.8 percent to Y200.9 billion ($2.6 billion USD) during the first half of the fiscal year.
Nintendo doesn't report its earnings on a quarterly basis.
For the 2013 fiscal year, Nintendo has significantly cut its profit outlook from Y20 billion ($250 million USD) to Y6 billion ($75 million USD).
weak 3DS sales
for the slash in profit outlook for the fiscal year 2013. The company expected to sell 17.5 million 3DS units and have only sold 5.06 million in the first half, which makes the 17 million look a bit out of reach.
Other Nintendo hardware has declined as well, such as
(1.32 million units sold in the first half of 2012) and the original DS (980,000 unit sales during the same time period). However, software sales seem to be doing well -- it reached 64.45 million sales during the first half. Wii sales may pick up too, since Nintendo just
cut the price down to $129.99
Nintendo CEO Satoru Iwata recognized that cheap gaming on mobile devices like smartphones and tablets has put the company in a difficult place. While devices like the Nintendo 3DS are also mobile, it's much more convenient to carry one device that makes calls, sends texts, accesses the Internet and offers games instead of just one gadget that only offers games. Despite this challenge, Iwata said that Nintendo is sticking with its traditional gaming machines and titles instead of shifting to other methods.
"Certainly, a new competitive environment has been born," said Iwata. "But we have no plans to use our valuable resources for smart devices."
A lot of Nintendo's gaming future depends on the launch of the Wii U right now, which is the successor to the original Wii console. The Wii U, which is only weeks from release, offers a new gaming experience that Nintendo hopes will draw customers in a different way from smart devices.
The Wii U features a 6.2-inch GamePad controller, 1080p high-definition graphics and 2GB of memory. Nintendo hopes to 5.5 million Wii Us and 24 million Wii U software titles by the end of March 2013.
Wii U will be released on November 18
in the U.S., and customers can choose the basic model for $299.99 USD or the premium model for $349.99 USD.
This article is over a month old, voting and posting comments is disabled
10/24/2012 9:59:30 PM
Nintendo would rather commit seppuku than to put any of their software onto foreign (i.e. non-Nintendo) platforms. It's their hardware or death for them.
10/25/2012 4:40:16 AM
Nintendo's revenue for 2010 was $13.7 billion, and for 2009 was $17.7 billion. You simply cannot make that kind of money in game software. Activision, still the largest game company in the world, only has revenue of $4.75 billion.
"Folks that want porn can buy an Android phone." -- Steve Jobs
Nintendo Cuts Wii Price to $129.99 USD Before Wii U Launch
October 15, 2012, 4:39 PM
Nintendo: Wii U to Launch Nov. 18 for $299/$349
September 13, 2012, 5:17 PM
Nintendo CEO: 3DS Sales "Weak" in U.S., Europe
July 5, 2012, 1:30 PM
Nintendo Revenue Plummets, Posts Annual Loss for the First Time
April 26, 2012, 10:37 AM
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Leak: Apple Preps for First Real Android App Foray With New Apple Music App
October 24, 2015, 1:59 PM
Pepsi Smartphone? Empty Calories Coming Soon to the Midrange
October 12, 2015, 11:41 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
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
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information