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Nintendo may announce first profit warning in six years

Tuesday, 20th October 2009 09:35 GMT By Patrick Garratt

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Nintendo may be on the verge of warning of a drop in profits and revenue for the first time in six years, according to this Bloomberg piece.

Net income will probably fall 11 percent to 249.3 billion yen ($2.7 billion) this fiscal year, the first drop since the 12 months ended March 2004, according to the median of 10 analyst estimates compiled since the company cut Wii’s price on September 24.

Nintendo is scheduled to report earnings on October 29.

“Nintendo may cut its profit projection about 30 percent because of sluggish sales in the first half, the price cut for the Wii and currency-related impact,” said Satoru Kikuchi, an analyst at Deutsche Bank AG in Tokyo.

“Investors are expecting the company to fully reflect its business environment in its forecast.”

Whoops. Lots more through there.

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10 Comments

  1. Tonka

    Nintendo are DOOMED!

    #1 5 years ago
  2. Tonka

    IN UR FACE KIDDY FIDDLERS! IN UR FACE!

    #2 5 years ago
  3. mescalineeyes

    there’s a lack of software.

    #3 5 years ago
  4. Bojangles

    I think Wii Music is at the crux of this. Nintendo produce evergreen titles – products that sell and sell throughout the year. Many games peak on release and then die down rapidly. Look at Brain Training and Wii Fit to see how well they sustain sales. Nintendo had already remarked disappointment on the reception/projections for Wii Music as they had clearly planned this to be another evergreen seller and it simply hasn’t performed to the standard that their other evergreens have.

    #4 5 years ago
  5. Tonka

    Good observation.
    They shopuldn’t have released Wii music without Wii Motion Plus. I tried to play the xylophone and it was a mess. Real mess.
    I’m not liking their rush for sequels either. SMG 2 and Wii Fit Plus. Makes me think they are out of ideas

    #5 5 years ago
  6. alimokrane

    Oh Poor nintendo isnt going to make bigger profits 6 years in a row …. Geez, could they be more greedy ??? It’s not even a LOSS they are reporting, just a decline in profits which..HELLLO.. is still a bloody profit!!!!

    #6 5 years ago
  7. Psychotext

    lol… cutting their projection by 30% still means they’re likely to be making over a billion profit. Crazy world.

    #7 5 years ago
  8. JonFE

    Am I the only one who isn’t even the slightest bit annoyed with SMG2? I loved the original and will probably love the sequel as well :D

    BTW, Wii Fit Plus isn’t a sequel per se, it’s the refinement of the original ;)

    #8 5 years ago
  9. Alexander Norris

    alimokrane: what does this have to do with greed? It’s a profit warning. It goes out to share-holders and investors to warn them that there has been a negative increase in the company’s profit.

    You know, because it’s the sort of information that is useful for shareholders and investors.

    #9 5 years ago
  10. Grimrita

    the fad is finally over.

    #10 5 years ago

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