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Nintendo posts financial loss for first-half of 2012, weak 3DS sales part of the problem

Wednesday, 24th October 2012 09:24 GMT By Dave Cook

Nintendo has posted its six-month financial report for 2012, revealing a loss of 27.9 billion yen / £219m. While the loss is down from the same period in 2011 – 70 billion yen / £551m – the company has also trimmed back its yearly sales projections after seeing slow uptake of its 3DS console outside of Japan.

At the start of the financial year, Nintendo posted sales projections of 20 billion yen / £157m, but it has now lowered that estimate in the report, which can be found in full here.

Nintendo’s revised projection sits at six billion yen / £47m – a significant drop that is the result of a drop in net sales of 6.8% for the half – that’s a drop in net income of 27,996 million yen.

To date Nintendo has sold some 22 million 3DS consoles, 64.45 million 3DS games, and has shifted around 97.2 million Wii units, although the company does appear to be pinning much hope on the launch and success of Wii U, which launches across Europe November 30th.

The company has also cited a dip in the Yen’s exchange rate as an issue, which it claimed has resulted in the loss of 23.2 billion yen / £181m in company value.

Can the Wii U accelerate Nintendo’s push back into profit? Let us know what you think below.

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19 Comments

  1. G1GAHURTZ

    It’s looking like ‘make or break’ time!

    #1 2 years ago
  2. FabioPal

    @1 … with a very weak product to launch… let’s see.
    *grabs popcorn*

    #2 2 years ago
  3. monkeygourmet

    When ever ive checked Japanese charts, Nintendo games have always dominated the top 10.

    Sometimes, its only Nintendo games, it’s always suprised me.

    Occasionally a PSP or PS3 game gets in but it’s still 80% Nintendo which i’ve always thought was crazy.

    Are these losses based on huge profits before or what?

    The 3DS is selling shit loads, they Wii has gone down (but they made profit on that right out of the blocks which is rare), and the Wii U is round the corner.

    Still, i am suprised. Wait till Pokemon comes out, im sure that will turn it around! ;)

    I can’t see Nintendo making another home console after the Wii U though. It’s prob saving money to launch the Nintendo Network in a big way, mid way through the Wii U’s lifespan. Prob to interupt the 720 and PS4.

    #3 2 years ago
  4. Dave Cook

    @3 Yeah man, doing well in Japan, not so good in the west, as the report shows. They really need to kick the arse out of their western sales to see parity.

    #4 2 years ago
  5. Dragon246

    Maybe they were hoping too much sales?
    Heres hoping they return to profit soon.

    #5 2 years ago
  6. monkeygourmet

    @4

    Do you think thats because of the underpowered Wii compared to 360 and PS3?

    Or shitty online infrastructure?

    They kind of got the market locked, Granny style but left the core behind.

    I can’t see those areas improving a great deal with Wii U though.

    I’ll still buy COD etc… on 360 if there’s no huge benefit in getting it on Wii U.

    That means, for me, Wii U will be for exclusives like my PS3, which would be a shame.

    I can’t help feel that if they’d just put a bit more power in the machine it would have nudged people over to getting one…

    Not that im a graphics whore… :)

    #6 2 years ago
  7. SplatteredHouse

    Their online/connected play strategy is still left shivering, rubbing sticks together, while everybody else flicks a switch in contentment.

    #7 2 years ago
  8. FabioPal

    @6 or just because there’s no space for a third contender in the console space? Even the 3ds… three games per console: it’s nothing.

    Only way is through innovation and unique products. And I don’t see a second screen as innovative or unique (with Smart Glass and the Vita/PS3 thing already on the market…).

    #8 2 years ago
  9. DrDamn

    @8
    It may not be such a unique product hardware wise, but the fact that every single Wii-U has this capability will ensure it has many more unique experiences. The product doesn’t have to be unique, the experience does.

    I do think Nintendo could be in trouble home console wise though. Not stopping me getting one, but I do see problems ahead.

    #9 2 years ago
  10. CPC_RedDawn

    Are you guys serious!? You think Nintendo are in trouble from a drop of 6.8% in sales for just the first half of this year and we have not even seen the launch of the Wii U yet and the Christmas rush period either? Nintendo would have to have a lot more years like this to be even slightly worried about closures.

    They just need to get their heads out their asses and put there billions where there mouth is and pay for some great exclusive unique games for their console.

    Zombie U and Bayonetta 2 is simply not enough. I do not want rehashes of old games (aka Batman Arkham City) I want new games, triple AAA blockbuster games on my console. Yeah sure they have Blops 2 and AC3 but still people are not going to rush out and buy a new console just play these games.

    #10 2 years ago
  11. Gadzooks!

    I really can’t see PS3/Vita link or Smartglass having any impact at all on WiiU or games in general.

    Neither are ‘in the box’ so are not going to be adopted my the majority of devs, and Smartglass is utterly worthless as its not even a controller!

    My biggest concern about WiiU is that the promised upgraded online service is not there, and it hasn’t been integrated to the console.

    Example: No standardised, OS resident voice chat.

    Such antiquated online services just don’t cut it anymore.

    I only want a WiiU for couch gaming, but it will be a problem for the wider market.

    #11 2 years ago
  12. DrDamn

    @10
    I’m don’t think they are in trouble because of just this particular article, I’m worried more because of what you finished your comment with. Wii-U will sell out nicely over Christmas, but it’s a really hard sell for the future. What it does is not as instantly explainable and obvious as the Wii. The masses are and will be confused as to what it is and does.

    #12 2 years ago
  13. SplatteredHouse

    Are 32X comparisons unreasonable?

    #13 2 years ago
  14. FabioPal

    it’s a loss on last year’s same period, so, yes, it’s worrying. ~6% of a huge amount of money IS a huge amount of money.

    #14 2 years ago
  15. OlderGamer

    I also think it is fair to compare Nintendo 6.8% drop to other folk sin the industry. For the past 10 months the average is around 30% year on year decline across the board.

    I kid you not, but a couple/few years ago on this very site, in my ussual gloom and doom sorta of way, I said the industry would crash. As ussual I was snickered at. Its crashing. Less crashing out right, and more crumbling and restructing. The industry needs the next gen badly, horrible idea to keep it going so long. Unless graphicly, there is little room to improve(my therory)(due to TV graphical ceilings, dev costs, game prices, hardware prices etc).

    I think in the next gen/few years, Nintendo will continue to do what they do best. However, there is zero chance in my mind that they will recapture the type of sales that Wii enjoyed. Handhelds are not big movers in the west. That being said Gameboys will always outsell PSPs(unless Sony figure out what does and does work marketwise).

    I expect the same thing to happen to everyone. Unless MS get their system out at a much lower then I expect price, and soon, things will continue sliding. My over all concern is if a new gen will due much to correct the slide? I figure yes in the short term, but can that burst be sustained over four or five years?

    Its funny on one hand the games industry has never been bigger. On the other hand, I think they are in real trouble. Possibly it just ballooned up, burst, and is settleing back down to more normal and sustainable numbers.

    Que Da Man looking for a forum war over the headline.

    #15 2 years ago
  16. mistermogul

    The strong yen is really kicking Japanese companies in the balls that trade internationally…

    #16 2 years ago
  17. polygem

    how long will it take now for the next gen to start? right now i feel like xmas 13 we will see either the ps4 or the 99 dollar subscription nextbox720…on the other hand i can imagine sony relying on the ps3 for at least two more years from now, i think they shouldn´t do that but i think it´s not impossible. who knows? i am not sure what takes them so long. sure, all of em have build up an even bigger userbase this gen. more than ever before. they should definiteley all have some proper BC plans if you´d ask me. but, it´s been too long….7+ years. that´s a long long time. gamers are more then ready to jump into a new gen. they´d embrace it.
    i am not sure if i will go multiplat, as i did this gen, next gen though. i will probably pick just one home console (ok, maybe one AND a nintendo) and a handheld. it´s more than enough for me. the software purchase costs for three systems plus handheld, shouldn´t be underestimated. it´s a lot of cash. i want more news so i can choose which i wanna buy next gen FFS!.

    #17 2 years ago
  18. DrDamn

    @15
    Agree with most of that – though Microsoft continue to do very well. They are still making profits from their gaming division.

    “settling back down to more normal and sustainable numbers” – particularly this point. It needs it too, it’ll be healthier in the long term. There are big changes in gaming ongoing and incoming. How we buy, what we buy, how we want to play. The businesses behind it all are now shifting to accommodate this. There will be some casualties, some new players and some unseen surprises. Out the other side things will be better though – at least for gamers :)

    #18 2 years ago
  19. LuLshuck

    I cant even think of a game on 3ds which looks appealing which is a shame because the normal ds is awesome

    #19 2 years ago

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