Nintendo reports annual losses for first time in 30 years

Nintendo reports annual losses for first time in 30 years

by -
1

nintendo losses Nintendo reports annual losses for first time in 30 years

The Big N just posted their financial results for their last fiscal year and for the first time in three decades they came up in the red for the year.  This is due mostly in part to the 3DS price cut that happened last year.  With the handheld being sold below cost and explosive growth thereafter, Nintendo was probably happy for market penetration, but not so much with the margin.

They loss to the tune of $530 million (£327 million) which while not a huge blow to Nintendo is still nothing to sneeze at.  The company has a strong lineup of games coming this year and a new hardware launch with the Wii U.  Also with their further acceptance and planned implementation of digital content with the Nintendo Network, Nintendo will surely recover and become profitable again moving forward.  In conjunction Nintendo will likely reduce the manufacturing costs of the 3DS this coming year and return that piece of hardware to a profitable status.

Nintendo 3DS 585x350 Nintendo reports annual losses for first time in 30 years
This little fellow, ain't so cheap apparently

This news isn’t that disconcerting because we all know that Nintendo never stays down very long.  They will bounce back and if they get a good E3 under their belt may even reclaim some nay-sayers regarding their recent efforts.  Stay tuned for more Nintendo related news, but until then watch this Nintendo training video from 1991.

[yframe url='http://www.youtube.com/watch?v=WYjgHLFZMa0']

  • GigglingJackal

    One thing that bothers me about Nintendo is that they’re going to be “Nintendo” at any cost. The often subpar games, awful internet, etc. I know I’m generalizing; I just know that they could easily compete with Microsoft and Sony if they made some compromises. A stronger business year this year is great but I’m still not seeing that “killer app” that scares the competition. My perceptions are a part of this opinion, granted. I just really want to truly desire a Nintendo product again