Nintendo posts large Q1 loss, but 3DS now profitable
by Steve Watts, shacknews.com, Jul 25, 2012 2:00PM PDT
The Japanese gaming giant is continuing to struggle. After posting a tough annual loss earlier this year, the first quarter of its new fiscal year is also in the red.
The company reported a net loss of approximately 17 billion yen ($221 million). The company's fiscal year forecasts remain the same, aiming to sell 18.5 million 3DS consoles and 10.5 combined Wii U and Wii consoles.
On the bright side, the company sold 1,860,000 3DS systems during the period, which was up from the same period last year. And, unlike last year, the company has announced that the 3DS is no longer selling at a loss since its drastic price cut. That means that each 3DS sold is now adding money to Nintendo's coffers, instead of subtracting it, which should give the company a better outlook for the remainder of the year.
Eurogamer reports that 7.39 million 3DS games were sold in Q1, compared to only 4.53 million last year. Wii sales are slowing considerably, though, with only around 700,000 unit sales during the period.
Nintendo is counting on continued success of the 3DS through the holiday season, especially with its upcoming hardware revision, and the launch of the Wii U to carry it through this fiscal year.