Nintendo loses 1/2 billion dollars in 2011

[ASSEMbler]

Nintendo loses 533 million usd in 2011
due to poor sales and costs of 3DS

http://www.bbc.co.uk/news/business-17852137

"Nintendo, the Japanese game giant, has reported its first annual loss after disappointing sales of its Wii game console and a strong yen hit revenues.
The company reported a net loss of 43.2bn yen ($533m; £329m) for the year, compared with net income of 77.6bn yen the year before.
The Kyoto-based company had expected losses of 65bn yen as the strong yen made exports dearer.
But it now expects to return to profit in 2012 as the yen weakens.
Nintendo, which once led the video games world with titles such as Pokemon and Super Mario, has suffered increasing competition from casual gamers playing on their smartphones instead.
The company had also been selling its 3DS handheld device below cost during the year thanks to a price cut it was forced to make in response to intensifying competition in the sector.
But it hopes to reverse this situation later this year and plans to launch a new 2D version of its Super Mario Bros. game this August.
While sales of Nintendo's Wii console have been slowing of late, the company still shifted 9.84m units for the year to March 2012.
It is hoping an updated version, the Wii U, due for launch at the end of this calendar year, will help revive the flagging console market.
But some analysts believe that competition from online social-networking games and smartphone apps will dent the console market irrevocably.

"

[HEX1GON]

This news somewhat didn't shock me too much.

[Shinebi]

an updated version, the Wii U

There ya go. Who said it was a 'new console'? *goes off to check the Wii-U thread*

[Jamtex]

Is it is funny that the report says that they expect to get back into profit on the weaking of the Yen, but in th IR report it suggests that the Yen / Euro rate will stregthen from 109 to 105...

Sales overall did drop, in Japan it dropped by about 10%, in Europe it dropped by 33% and in America it was around 45%!

The sales of the DS in Japan have dropped to 10% of what it was selling last year, still surprised that they still make the DS Lite, DSi and DSi XL.... In America and elsewhere they have dropped to 1/2 to 1/4 of what they were selling last year with software sales basically halving from last year.

The 3DS on the other hand has nearly quadrupled in sales from last year but overall sales of 3DS software is only 2/3rds of what the DS software sales are and only in Japan is the 3DS software selling better then the DS...

Wii software sales especially in America have dropped a lot, nearly to half of sales from last year. 2/3rds elsewhere and in Japan Wii software sales are now less then the 3DS!

Even there playing card division have seen sales drop by 10%.

The new Mario game will shift more consoles and software but you really do hope that the Wii U does start to shift software, or you hope that they upgrade the GPU and CPU a little more so that future software can improve else Nintendo might start to crumble.

In more positive news they still have 460,186 million yen in cash or cash equivilents in the bank (that is about $5 billion), so if Nintendo were a small country they would rank above Montenegro, Barbados, Timor-Leste, Mauritania, Swaziland, Suriname, Togo, Fiji, Eritrea... and are in no danger of being bought up by Apple just yet.

[Bad_Ad84]

In more positive news they still have 460,186 million yen in cash or cash equivilents in the bank (that is about $5 billion)

I assume thats supposed to be billion yen, not million?

[pool7]

1/2 billion? Amateurs... ^_^
http://www.ibtimes.com/articles/3262...lion-hirai.htm

[GodofHardcore]

I fart in Nintendo's General direction, Zelda was a Hamster and Mario smells of Elder berries

[The Perfect K]

The sega fanboy in me cheered

[Shadowlayer]

Guess they have the same fucktards in accounting that the corrupt old farts from Olympus

Seriously, three best-selling consoles in a row, DS, Wii, 3DS, and they still manage to lose money?

If the WiiU is like the Xbox nintendo is going to go bankrupt and disappear all during launch day

[GodofHardcore]

I know the truth

Iwata has a gambling problem.

[Yakumo]

They don't actually lose money you know. When a company says it made a loss what they really mean is that they didn't make as much as they thought they would have.

Nintendo still have a shit load of cash.

Yakumo

[brainpann]

Their losses were due mostly to 3DS and strong yen. Jesus, a company posts losses once after twenty or so years...

Where is that Vita/Sony losses thread. I feel like saying something asinine.

[The Perfect K]

They don't actually lose money you know. When a company says it made a loss what they really mean is that they didn't make as much as they thought they would have.

Nintendo still have a shit load of cash.

Yakumo

No, there is a difference between a gross loss and a net loss. This isn't adjusted earnings - you see those posted as "nintendo lost $X in Q3" and then read the financial report and see that they mean they were X amount short of the projected earning under net gain or net loss.

This is not that. Nintendo netted -$500 million. From all the operating expenses associated with both the Wii and 3DS, they have less money today as a company than they did last year. Not, they didn't grow as expected. They didn't grow at all. They actually, literally shrunk.

You're confusing a fiscal year report, with a quarterly report. If they say they lost money, not profits, in 2011 during a fiscal year report, they actually lost money.

Their losses were due mostly to 3DS and strong yen. Jesus, a company posts losses once after twenty or so years...

Where is that Vita/Sony losses thread. I feel like saying something asinine.

The sony situation is also one of those "actually lost money" situations. Sony lost $6 billion dollars. Their company is in serious trouble. Where it's different compared to Nintendo, though, is that Nintendo operates primarily as a game company, while Sony has many areas of industry. Their disasterous TV line is what is killing Sony.

[GodofHardcore]

To be fair Microsoft posted a loss too.

[brendand]

I think Sony will post a loss soon if they have not already as psp is dying slowly and Psvita is not setting the world on fire with its sales and ps2 is dead by now

[geluda]

$6bil? Wow, that's bad, no wonder they're covering their butts from law suits...

[HEX1GON]

I still think SONY's would be more, don't they make a loss on the Playstation 3 every time? Oo

[Bad_Ad84]

They stopped selling them at a loss about 2 years ago

[Jamtex]

They don't actually lose money you know. When a company says it made a loss what they really mean is that they didn't make as much as they thought they would have.

Nintendo still have a shit load of cash.

Indeed they still have more money then the GDP of Barbados... I do wonder if anybody reads past the first post. :p

However their IR report over the last 12 months shows that the money they made is smaller then the money they spent, which in most cases does indicate a loss.

Although the strong yen does account for some of their losses, the fact is that their sales were a lot less then their operating costs... With the Wii having a massive decline in America.

[Shadowlayer]

They don't actually lose money you know. When a company says it made a loss what they really mean is that they didn't make as much as they thought they would have.

They still calculate costs against those profits that didnt materialize, thus nintendo might actually be losing money