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Nintendo posts first annual loss

| April 26, 2012

Nintendo posts first annual loss News Nintendo  WIIU WII Nintendo 3Ds

As rumored, Nintendo posts its first ever operating loss in the company’s long history.  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.  Nintendo lost over $533 million dollars in 2011 (fiscal year ’12), but things are apparently looking up for the company.  Aside from the sobering news of the annual loss, Nintendo pointed to the many bright spots that investors have to look forward to.  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.  Production costs for the 3DS should be on their way down, according to Nintendo.  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 $247 for 2013 fiscal year.

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  • Egg_Yellow89

    Still better off than Sony*

  • IHATEHIPSTERSSS

    Haha suck it

  • Bigjershby

    the thing u have to keep in mind is both of them r based out of japan who when through 2 massive disaster  a huge earthquake and powerplant meltdown

    i hope it never happens but if a 7-9.0 earthquake hit the westcoast and a nuke powered plant meltsdown less then a week later as a result the american gaming market would lose money aswell japan is a small country they got rocked hardcore in everything not just games japans #1 money maker is its fisherys and its even having a hard time bouncing back

    all im saying is no japan based anything almost is doing well right now

  • BloodTorrent

    nintendo suck, hopefully the losses continue. people really should be getting bored of the constant re-hashes and gimmicky, weak hardware.

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