Nintendo Posts Half-Billion Dollar Loss
Nintendo today reported a loss for the first time in more than three decades. The video game juggernaut who launched their first console in 1986 has reported over $500 million in losses for the fiscal year ending March 31, 2012.
With the precipitous slow-down in sales of the Wii console after the announcement of the successor, the Wii U, alongside a heavy price cut that sold the Nintendo 3DS below cost, it’s not much of a surprise that Nintendo’s year-end financials were going to be less than what was expected. According to the financial report released today:
“For the “Nintendo 3DS,” its hardware has been sold below cost because of its significant price cut in the fiscal year ended March 31, 2012. However, Nintendo expects to cease selling it below cost by the middle of the fiscal year ending March 31, 2013.”
Nintendo also stated that it expects sales of upcoming titles such as New Super Mario Bros. 2, Animal Crossing (in Japan), and other “compelling titles” to “further expand sales” of the Nintendo 3DS for the fiscal year ending on March 31, 2013. This along with sales of the Wii U console beginning “at the end of this calendar year” are expected to drive sales back to profitability.
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