Nintendo reports 1Q loss on discounts, strong yen

Jul 26, 2012

(AP) — Nintendo Co. reported a net loss of 17.2 billion yen ($221 million) for the April-June quarter, hurt by product discounts and the strong yen.

That was smaller than the net loss of 25.5 in the same quarter a year earlier, but the company said Wednesday that fiscal first quarter sales still fell nearly 10 percent to 84.8 billion yen.

After slashing the price of its 3DS game console last August, the Kyoto-based game maker has been selling it at a loss. Such price cuts are relatively common to boost slow sales. Sometimes profit is recouped later from increased game software sales.

official Yasuhiro Minagawa said that as of this week, the company was no longer selling the 3DS at a because mass production has brought down production costs.

Nintendo, whose products compete against offerings from Microsoft Corp. and Sony Corp., aims for a net profit of 20 billion yen for the business year through March 2013.

The Kyoto-based company hopes for strong sales of two new products to be launched this year. The 3DS XL, a larger-screen version of the 3DS, goes sale this Saturday in Japan and Europe and on Aug. 19 in the U.S. It will also have a new version of the Wii called Wii U, in time for the year-end shopping season.

Nintendo said it sold 1.86 million 3DS consoles worldwide for the quarter, with software sales reaching 7.39 million units, including the Mario Tennis Open, launched this past quarter.

Sales of DS hardware were a disappointing 540,000 while sales of the Wii reached 710,000, it said.

Nintendo, whose overseas sales accounted for 61 percent of total , also got hit by the strong yen, which erodes overseas income when repatriated. Foreign exchange losses totaled 21.1 billion yen during the quarter, it said.

Explore further: HP revenue inches up after years of decline

5 /5 (1 vote)
add to favorites email to friend print save as pdf

Related Stories

Nintendo posts loss on strong yen, weak sales

Jan 26, 2012

(AP) -- Nintendo Co. sank to losses for the April-December period, battered by a price cut for its 3DS handheld, a strong yen that erodes overseas earnings and competition from mobile devices such as the ...

Nintendo posts first annual loss

Apr 26, 2012

Japanese videogame giant Nintendo on Thursday posted its first annual loss since becoming a public company, blaming a soaring yen and price cuts on its consoles for sinking it $530 million into the red.

Nintendo's loss swells to $925 mn for first half

Oct 27, 2011

Nintendo said Thursday its net loss swelled to 70.3 billion yen ($925 million) for the six months to September as it forecast a full-year loss, citing the strong yen and a lack of hit game titles.

Japan's Fujitsu hit by third-quarter loss

Jan 31, 2012

Japanese high-tech giant Fujitsu plunged into a net loss for the three months to December, it said Tuesday, as it slashed its full-year sales and profit forecast.

Nintendo sinks into the red for first half

Oct 28, 2010

(AP) -- Nintendo sank to a first-half loss, the first in seven years, as a rising yen and long-delayed release for its 3-D gaming machine set the scene for a weak full-year result.

Nintendo says 3DS sales weaker than expected

Apr 26, 2011

Nintendo president Satoru Iwata said Tuesday sales of its new 3DS handheld game player had been weaker than expected in the US and Europe, as well as in Japan where the quake hit consumer sentiment.

Recommended for you

Ticketfly buying WillCall for on-premise data

5 hours ago

Ticketfly Inc., a San Francisco-based technology company among several posing a challenge to Ticketmaster, is acquiring WillCall Inc., a crosstown rival that turns your smartphone into a mobile wallet at live events.

HP revenue inches up after years of decline

21 hours ago

Hewlett-Packard on Wednesday reported that its quarterly revenue rose for the first time in three years, nudged by improved computer sales everywhere except Russia and China.

Restaurants experimenting with pay-in-advance tickets

Aug 20, 2014

With restaurant patrons increasingly jumping on the Internet to make reservations, some high-end eateries here and across the country are adding a new tech wrinkle: having their clientele pay for their meal in advance using ...

Chip maker Infineon to buy California firm for $3B (Update)

Aug 20, 2014

German chip maker Infineon Technologies AG says it has agreed to pay $3 billion in cash for California-based semiconductor firm International Rectifier, which produces power-management components used in everything from cars ...

User comments : 0