Nintendo Just Posted Its First Annual Loss

Today, Nintendo announced its first annual operating loss in the company's history. Sluggish Wii sales and a strong Japanese wind hurt Nintendo — not to mention a rocky rollout for the Nintendo 3DS.

The game maker chalked up a US$455.9 million operating loss for the 2011 financial year.

The Nintendo 3DS is being sold below cost due to a large pricecut. However, Nintendo stated that the 3DS will cease to be sold below cost sometime next year, making the handheld even more profitable for the Kyoto-based game company. Nintendo is also forecasting a profitable 2012, thanks to strong 3DS sales and the upcoming Wii U.

For 2012, Nintendo is predicting an operating profit of $US429 million. Warm up those money printing presses, Nintendo!

(Top photo courtesy of Alex manchester )

Comments

    Thats an almost 1 billion dollar swing to get that. Not impossible but the Wii U would have to be profitable straight off the bat? Highly likely given the Wii was mind you. Good luck Nintendo.

    Bring more japanese titles to us Westerners, and ill give you my money Nintendo ;D

    2011 financial year? What period does Nintendo count as it's fiscal year?

      Japanese financial year runs April 1st to March 31st which is why you're only just seeing the figures for that year now.

    From Wikipedia:

    Japan

    In Japan,[7] the government's financial year runs from April 1 to March 31. The fiscal year is represented by the calendar year in which the period begins followed by the word nendo (年度); for example the fiscal year from April 1, 2010 to March 31, 2011 is called 2010-nendo.

    Japan's income tax year runs from January 1 to December 31, but corporate tax is charged according to the corporation's own one-year period.

    Fuck, it's almost as is some huge catastrophic event happened right at the start of the financial year that made people care less about video game consoles.

      I admit Dragon Age 2 was bad but I don't think it affected peoples opinions of ALL video game consoles.

        Well played sir, well played.

    Miyamoto and all the other ancient geezers at Nintendo have failed to move with the times. They used to set the benchmark for video game design - but other developers have taken over and are leading the way for innovation in games,
    I hope Nintendo become a software developer soon. Then maybe we will actually get some new original games. Also, for gods sake, won't someone at Nintendo kick Miyamoto out of the Zelda and Mario chair?. He ruined what could have been an awesome Twilight Princess game.

      lol you have no idea what you are talking about, the 3DS is selling amazingly well, the Wii sold amazingly well the DS sold amazingly well and expect the Wii U (I hope they change the name) to sell amazingly well.

      Miyamoto is no longer producing the Zelda and Mario games. Instead, he's focusing on developing new titles for the Wii U.

      Twilight Princess was awesome. So was Windwaker.

    Not as bad as SONY's $6.21 billion loss. Stay mad!

    Sony's Video game section is in profit you half truth telling twat...
    So much profit it's keeping the company afloat, and the former PSx boss got promoted to overall company boss.

    They'll bounce back - they always have:)

    strong Japanese wind???

    If sony and or micro-soft even tease their next Gen consoles at E3 then the Wii U will be DOA, I think the "core" crowd will be very wary of nintendo after the game-cube and Wii and the casual crowd arnt even aware that it is a new console.
    I friend of mine who works at a game shop says that a lot of wii users think the Wii-u is just an add-on or new controller like Wii-fitt or a nintendo tablet.When he explains that its a new console and tries to steer them to a pre-order the customers balk at the $600 place holder price tag.
    I think a major public education and a name change is needed.

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