Nintendo sees first annual loss but expects profit next year
Nintendo posted its first annual loss thanks to slower sales of its Nintendo Wii console and weaker demand for its handheld 3DS console. However, it predicts it will return to profit this year.
According to Nintendo, its operating loss was 37.3bn yen (US$460m) for the year ending 31 March.
Its net sales dropped 36.2pc compared to the previous year. While Nintendo said it cut the price of its Nintendo 3DS console below its cost price, sales were slower in Europe and the US during the Christmas period than previous years. It sold 13.53m Nintendo 3DS consoles and 9.84m Nintendo Wii consoles.
As for software, it sold 36m Nintendo 3DS games compared to 60.82m games sold on its predecessor, the Nintendo 3DS, during this period. For the Wii, it sold 102.37m games, which was attributed to the launch of The Legend of Zelda: Skyward Sword and with third-party dance games.
Nintendo also suffered with exchange rate losses, thanks to the impact of the stronger yen against other currencies during this fiscal year.
However, it believes it will make an operating profit of 35bn yen (US$429m) in the coming year. Nintendo said it will release games such as New Super Mario Bros. 2 and Animal Crossing to drive up Nintendo 3DS software sales.
It expects to sell the 3DS above its cost price by the middle of the financial year and will also launch its next console the Wii U at the end of 2012.