Report: Nintendo to post $1.32 billion loss tomorrow
by Steve Watts, shacknews.com, Oct 26, 2011 7:45AM PDT
Nintendo has forecast a loss off 55 billion yen (approximately $725 million) for the first half of the fiscal year ending on September 30, but Japanese newspaper Nikkei business daily claims the loss could be as high as 100 billion yen ($1.32 billion). Nintendo's shares took a 7.5% hit after the news broke, to 10,800 yen ($142).
Reuters cites sluggish sales of the 3DS due to the increased competition of smartphones as one cause of the loss, as well as difficulties due to the strength of the yen. Nintendo declined to comment on the report to Reuters, but the full earnings are due tomorrow.
Nintendo has had a strong hardware backbone over the last few years, but that position has been weakening lately. The Wii is in its twilight years with fewer new games hitting while the company focuses on the Wii U. The 3DS, which could have carried the company through the waiting period if it had sold like the original DS, sold slowly enough to warrant a heavy price reduction within months of its release.