Nintendo Losing More Money Than Expected

For the most recent quarter ending in June, Nintendo showed a 5.1 billion yen ($64.5 million) loss. According to Reuters, analysts were predicting a four billion yen loss ($50.6 million). But don't worry. There's hope. Nintendo showed a group net loss of 24.53 billion yen ($310.3 million) for the quarter, Kyodo reports (via The Japan Times, where I am a columnist).

This comes as investors were confused over how Pokemon GO will benefit Nintendo, causing stock prices to plummet.

Nintendo, who does 70 per cent of its business outside of Japan, blamed the larger than expected loss on the strong yen. Sluggish hardware sales didn't help, either.

During the same period last year, however, Nintendo netted a 1.15 billion yen ($14.5 million) profit, Reuters adds.

For the rest of the financial year, Nintendo forecasts its operating profit to climb 37 per cent. More optimistically, Pokemon GO has shown huge potential for other Nintendo smart apps, and there's also the NX around the corner.


Comments

    Pokemon GO has shown huge potential for other Nintendo smart appsI thought we already established that Pokémon GO was not a Nintendo smart app? The Fire Emblem and Animal Crossing apps will be Nintendo smart apps, but so far the only Nintendo smart app has been Miitomo which didn't exactly reach Pokemon GO levels of enthusiasm.

    Nintendo have not moved with the times. They have relied on gimmicky hardware to win fans over, which has not worked. Nintendo need to innovate again. Yeah, the NES classic will sell well, but that is only a niche market. And with what is leaking out about the NX console, I fear for Nintendo.

      "Yokoi came up with a pivotal design philosophy – "Lateral Thinking with Withered Technology" – which meant using cheap, readily available components in interesting ways..."

      Quote from an article about the Gameboy.

      Which fits for the Wii, and even Wii U.
      Nintendo are using a core design principle to keep costs down, by using cheap existing hardware, instead of expensive custom stuff. And that fits with everything we are hearing about the NX.

      Strangely I don't
      The 3DS had a rough start but it has been successful, the WiiU on the other hand was a dismal failure

      Nintendo consolidating their efforts behind their handheld business can only be a good thing in my view

      Nintendo is failing with its hardware because it's trying new things, being gimmicky, yet the only way they can succeed is to try new things, by innovating?

      At least try to get your story straight.

    From what I understand, Nintendo can afford to fail again, and again, and again, and again.

    hahaha silly investors, I knew this would happen.

    During the Go release hype I can imagine some 50something year old man googling "who owns the Pokemon company" - See's Nintendo, gets on the phone to another 50something year old broker who tells him its a good buy right now.

    hahaha

    Looks like the Nintendo is doomed parade is back on.

    Wtf stupid phone ate my comments again.

    Something along the lines of how there hasn't been all that much in the way of releases this year, plus gearing up for a hardware release at the start of next year. Seems like it'd make sense for chewing up money.

    I know its been said before but the name Wii U is what killed the machine before it even started and this has hurt Nintendo. Hell I overheard a conversation last week in a store about the Wii and Wii U and how many years has the Wii U been out for now. If they had called the Wii U something different to begin with consumers would not be confused and the console may of had a chance.

    Last edited 28/07/16 4:04 pm

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