As rumored, Nintendo posts its first ever operating loss in the company’s long history. Â The declining market for its Wii console, and a slow start for its 3DS handheld at its original price, both played key roles in helping Nintendo lose money for the first time in a fiscal year.
It was no small loss either. Â Nintendo lost over $533 million dollars in 2011 (fiscal year ’12), but things are apparently looking up for the company. Â Aside from the sobering news of the annual loss, Nintendo pointed to the many bright spots that investors have to look forward to. Â The company forecasts that it will once again swing into the black, and is banking on its 3DS handheld to see continued strength alongside a successful launch of it’s Wii U.
Nintendo’s early price drop of the 3DS caused for the company to sell each handheld at a loss, and once they dropped the price of the device it began selling like hotcakes in both Japan and worldwide. Â Production costs for the 3DS should be on their way down, according to Nintendo. Â The company should start seeing a profit from each device made, at some point in the upcoming year, which will definitely bolster the bottom line if the demand continues to be there.
The company is predicting a complete reversal of fortunes between 2011 and 2012, as it hopes to see a profit of around $247Â for 2013 fiscal year.
