Despite 3DS having apparently turned a corner, Nintendo's financial situation has worsened and it is now forecasting an annual deficit of ¥65 billion (£535 million).
The revised forecast, released alongside its financial results for the nine months ending December 31, is up from the ¥20 billion loss the company said it was expecting back in October.
Net sales during the period totalled ¥556 billion (£4.58 billion), down 31.2 per cent year on year. The company's losses came to ¥48.3 billion (£398.2 million); this time last year it posted a profit of ¥49.5 billion.
It's worrying stuff given that worldwide 3DS sales in the nine months to December 31 totalled 11.43 million, and sales since launch have passed the 15 million mark; at the end of Nintendo's previous financial quarter, on September 30, lifetime sales were just 6.68 million. The impact of Nintendo selling 3DS hardware at a loss following August's global price drop is beginning to be felt.
The handheld now has three million-sellers in Mario Kart 7, Super Mario 3D Land, and Capcom's Monster Hunter Tri G. Worldwide software sales total 28.04 million - three months ago, that figure was just 8.13 million. The company sold 8.96 million Wii systems, and 89.06 million Wii games.
Nintendo attributes the loss to the 3DS price cut, a similar reduction in Wii's price, and the continuing strength of the yen - with re-evaluation of assets held in foreign currencies causing a loss of ¥52.4 billion during the nine months to December 31.
Comments
5Nothing unexpected after the chaotic start of the 3DS and the Wii disappearing even on casuals radar. Now they need continously strong 3DS sales and a good start for the Wii U. Otherwise they will find themselves back at the times of N64 and NGC. Beside that they should have enough money from all their DS/Wii earnings to withstand these times.
Japanese companies are really feeling the sting at the moment, based on a news report I read yesterday about their economy. Still, they seem to be the only company that try to make gaming enjoyable and fun these days so I will continue to support them. I bought the wife a 3DS yesterday; it is the first time since the Wii that me, her and our daughter have huddled around a console with smiles on our faces. Still play on my Wii every day mind. My PS3 gathers dust.
My PS3 broke back in the summer, and I haven't bothered to get it fixed (and the only thing that has tempted me to do so is Ico/Shadow of the Colossus Collection...remastered PS2 games).
My Wii has treated me well. I find it funny how people act as though there are no good games on the console (though admittedly 2011 was sparse until Zelda), I think it's more that the good games on the Wii simply lack the obnoxious marketing campaigns and hype-machines (two things which gamers let influence their opinions far too much).
And don't get me started on how annoying it is on the other consoles (much as I love the 360) to have only "most" of a game released at launch, and having to wait a few months and fork out more money in order to get all the DLC that makes the game feel complete. I want a complete gaming experience at my hands as soon as I buy it, not have to wait for DLC and updates to complete it. Nor do I want to wait for patches for bugs to be fixed, a game shouldn't have noticeable bugs to begin with, you can't use "we'll fix them later" as an excuse for not polishing a game from the get-go.
I also grow tired of how much games want to emulate movies. Games need to stop hiding their glaring flaws behind Hollywood-style cinematics and production values. Nintendo seems to be one of the few developers who still understands this, and instead relies on things like level-design, innovation and fluid control to display the artistry of game design.
As it stands, I plan on getting the Wii U at launch. But despite my love of the 360, I'm on the fence of any 720. As for Playstation 4... I'd rather not have my heart broken again.
My apologies, I double posted. Sorry gentlemen.
Hmm... glad to hear that and a pleasure for me in terms of you and your family. In my case it's just vice versa. PS3 is heavily used, Wii is gathering dust ;-)