Nintendo posts half-year net loss, a first in seven years

After three years of record earnings, the mighty house that Mario built is reporting a net loss of ¥2.01 billion ($25 million) in the fiscal first half ending 30 September versus a profit of ¥69.49 billion a year earlier. In addition to the adverse affects suffered under a strong yen, Nintendo's sales for the first half of its fiscal year were down 35 percent to ¥363.16 billion due to lower demand for its Wii console. According to the Wall Street Journal, this represents Nintendo's first net loss in the fiscal first half in the last seven years. The future outlook is pretty grim too with Nintendo forecasting an annual profit drop to the lowest level in six years as Wii console sales decline for the second year in a row. Ouch.

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NewsForMe2821d ago

Blame pirating, everyone is doing it.

360RRODFIX2821d ago

how is this possible? Ok they don't sell as many units, but they make money on every unit sold, on both ds and Wii.
Can someone explaine? Doesnt make much sense to me.

SpoonyRedMage2821d ago

The exchange rate is really bad and instead of having lower earnings every quarter they put all the losses into the last quarter so it looks like they lost a lot last quarter. This quarter they nearly balanced because this quarter was profitable(obviously) but overall for the half it's still negative. It's weird.

Trroy2820d ago (Edited 2820d ago )

If you haven't noticed, Wiis now come bundled with a Wiimote + WiiSports, like always, and now they also come with: a nunchuk, a WM+ add-on, WiiSports Resort. Also, the price dropped by $50, on hardware that was pretty close to a rock-bottom price to build, when it released.

With all that stuff in the box, and the low price, I'm not so sure the Wii hardware is super profitable any longer.

On top of that, I wouldn't be surprised if Nintendo was trying to woo software publishers back to the Wii, by cutting licensing fees back -- which would yield a pretty hefty drop in revenue. They have to get the publishers on-board again, somehow.

Seferoth752820d ago

Wii always came with the nunchuck. Cost for M+ and Resort is minimal at this point. we know M+ is cheap and resort covered its development costs long ago.

It has nothing to do with the Wii. It has to do with Nintendo buying up parts for the 3DS and probably some increased R&D on a Wii successor.

GodsHand2820d ago

Uhhh, no. The first release of the Wii only had the wand, you had to buy the nun-chuck seperate.

Seferoth752819d ago (Edited 2819d ago )

No it didnt dude. It launched with the nunchuk for free in every country. Can you provide any link of when it was announced to be included? Since it launched that way I know you cant.

So uhh no someone else and this time have a reason to.

N4OGs2820d ago

pokemon black and white and such. that leads to people pirating and not wanting to get it when it finally does come to other territorys.

Nintendo needs to stop ripping people off with these half arse compilations like the super mario bros collectors crap for 30 bucks. It doesnt even have super mario world, super mario 64, or sunshine like it should for that 30 bucks price.

Lower the price on the vc for them old arse games everyone can play for free through the internet. Nintendo drives people to pirating with there rediculos virtual console game prices and there half arsed compilations.

release games like earthbound worldwide. dont make kirby into a crappy little kids epic yarn game. That crap is way to kiddy. make a kirby superstar sequal u dummy nintendo.

Get better online for there games and make some new franchises because all i seen is the same old mario, kirby, zelda bs.

punchout remake should of been punchout 1+2 and not freaking dk as the last guy.

Nintendo is so cheapskates

Muletroid2820d ago

well they aren't ripping anyone off because no one is being forced to buy the mario collection its a limited edition for collector so whoever wants it gets it

they CANNOT releases earthbound outside of japan because of legal issues
as for kirbys epic yarn the reviews are among some of the highest and the sales look to be excellent it says something about the product

nintendo does make new games/franchises just because they aren't as big as mario,zelda and the others doesn't mean they aren't there

as for punch out the first and 2nd were generally the same game so i don't get it?

Solo2272820d ago

Cant wait for Nintendo to finally make a next gen console...

eagle212819d ago

Have you seen worldwide numbers? Have you seen the new EU numbers? Wii is still on top and that means no one is even thinking about catching up if you can't even outsell it once..LMAO. ;)

Honky Kong2820d ago

Nintendo has lots of money. Lots...

Skullomania2819d ago

The article says differently.