Saturday, January 28, 2012

Nintendo expects a net loss of 65 billion yen.

Not so great news. Though, given, I believe this is the first year they've been the red. Profit loss and net loss are very different things. (edit: I messed up the headline and left off three zero's: it's billion not million. That translates to roughly $847,678,664)

Nintendo has re-forecasted it’s earnings for the full year, which ends in March 31st, 2012. Anticipating a larger than expected loss, Nintendo has also reduced shipments across the board including; Nintendo 3DS units, Nintendo Wii consoles and software titles.


The original forecast was a net loss of 20,000 million yen. Now Nintendo has stated that is expecting a net loss of 65,000 million yen, more than three times the original estimate.

A strong Yen against foreign currencies account for some of the adjustment, almost 79% of Nintendo’s earnings came from outside Japan. This caused a loss of almost 54 billion yen in exchange. Other factors are the early price-drop for the Nintendo 3DS handheld and a price-cut for the Wii hardware this year.

In the aftermath of the new forecast, Nintendo has adjusted 3DS sales goals from 16 million to 14 million units. The Wii console is now expected to sell 10 million units instead of the original forecast of 12 million.

On the software side, the Nintendo 3DS takes the largest reduction in expected sales. Originally anticipated to sell 50 million titles, the Nintendo 3DS is now expected to sell only 38 million. DS hardware and software goals are relatively unchanged in this forecast; hardware sales were lowered to 5.5 million from 6 million and software sales are expected to sell 59 million units, down from 62 million.

Source: Nintendo Investor Relations via Game Examiner

Read more: Joystiq: Nintendo profits fall 66% in fiscal year, 3DS sells 3.61 million
"Nintendo's net income dropped to ¥77.6 billion ($946 million) for its fiscal year ending in March, marking the company's third year of profit declines"

0 comments:

Post a Comment