Nintendo’s financial results have been released and they paint a grim picture for the company. In fact, recent negative predictions were actually more positive than the final figures with Nintendo preparing for the first annual loss in thirty years.
In the six months leading to September 30, Nintendo’s net sales revenue fell by 40.6% while net losses have risen to ¥70.3 billion compared to last year’s paltry ¥2.01 billion. Almost all the losses are coming from sales, since R&D costs haven’t changed much despite Wii U development.
The United States is where sales have dropped most, with revenue dropping 53.8%. I can’t say I am surprised, since Japan and Europe have at least had some product on store shelves this year while Nintendo of America won’t publish games that are already localized. I wouldn’t suggest Xenoblade could give Nintendo a giant sales boost, but at least it would have had something to sell.
The only positive bit of news for Nintendo is that the 3DS is starting to do decently with lifetime sales reaching 6.68 million. Nevertheless, president Satoru Iwata is on shaky ground right now. While we have Kirby, Zelda and two Mario games coming soon, they’re all hitting after the financial results and Iwata may not be around long enough to see them bear fruit.
Nintendo braced for first annual loss in 30 years [Edge]
Published: Oct 27, 2011 10:00 am