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Nintendo Post Huge Losses in Q1 2011

Nintendo has released their quarterly financial results for the three months ending in June 2011 and it is not pretty. Net sales are down fifty percent from the same period last year, totaling just under 94 billion yen and the company operated at a loss of 25.5 billion yen. Factors which contributed to the disappointing showing include marketing for the 3DS and the strength of the yen over the dollar but it's really all about lackluster sales.

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Stealth2k2252d ago (Edited 2252d ago )

"Nintendo says its the 3ds marketing" "but its really this which I am about to make up right now"

Thats how destructoid works. They make things up

3DS forecasts went up. Not down. Its far outselling the ds. In prime positioning.

Its the ds and wii that are falling down according to the forecast.

Optical_Matrix2252d ago

Considering it's price, and the fact it came out in March 3 million+ units sold in 4 months isn't bad at all. What with the incoming software line up in Q4, I expect it to sell big during the holiday season. Especially with Mario Kart 7 coming out in December.

Stealth2k2252d ago (Edited 2252d ago )

Theres a reason why its projected to be number one in sales this year in japan (which the ds was never its first 2 years).

Its all the holiday

mario,pokemon, kid icarus, FF, DQ titles all during the holidays With a very very low price?

You also have to put in perspective that the ds was only selling like 50k a month in the US for 2 years.

People are making it seem like worldwide 700k is terrible but you have to put it in perspective.

hardware sales total are down in japan but the 3ds is still number 1. In the US its selling more than the ds did. Same in europe.

Those are actually good numbers.

Also when you dont even post a link you can say whatever you want. And people will believe the bs

NewMonday2252d ago (Edited 2252d ago )

hey Reggie! lets see if grandma helps you now

no good news for the 3DS, this is the real hard truth, stock owners, and even now, the official financial results confirm it.

serves Nintendo right for taking gamers for granted, this is the same mistake Sony made in the start of this generation, but they realized it quickly. and i hope MS learns from this when planning the 720.

MasterCornholio2252d ago

Dont forget the price drop that should help with sales as well

gaffyh2252d ago

Wow a bigger loss than Sony, did not expect that. I would have though sales in America would have kept them afloat a little.

Bereaver2252d ago

People don't seem to understand that the 3DS is the ONLY updated system for hand held gaming (besides Iphone/ipad games).

The forecasts are high now, but when the PSVITA comes out things will change a little bit.

+ Show (2) more repliesLast reply 2252d ago
pain777pas2252d ago

$169.99 for the 3DS as of Aug 12th people.

Just_The_Truth2252d ago

lol never thought i'd see that happen. That truly sucks for the early buyers. It's of course because the PSV is the same price but i remember reggie being asked if that would force them to change strategy and he said they don't worry about what other companies are doing, i guess worried then they let off.

Optical_Matrix2252d ago

@Just_The_Truth...

Lol no it doesn't suck for the early buyers at all. I have money, so I don't care that I paid £199.99 for the 3DS at launch. If it means I'm up to date with my tech, I couldn't care less. Plus I get 20 free games off of the E-Shop. So no, it doesn't truly suck for early buyers at all. Everyone that says that just sounds broke.

Stealth2k2252d ago (Edited 2252d ago )

The 3ds numbers were actually pretty damn good hence the higher forecast

Its the ds and wii that fell off the cliff hence the lowered forecast

http://www.andriasang.com/e...

\"Nintendo cited stronger-than-expected yen appreciation, sales performance, the price reduction of the 3DS hardware, and sales outlook for the holiday season. \"

\"The company expects to sell 9 million DS systems, 16 million 3DS system and 12 million Wii systems. The 3DS figure is unchanged, but the DS and Wii figures are down respectively from 11 million and 13 million.

On the software forecast front, the company expects to sell more 3DS software. Compared to the 62 million it announced in April, it now expects 70 million units. DS software forecasts were cut from 67 million to 62 million. Wii was cut from 120 million to 110 million.\"

Posting one more time so people can see whats actually happening

To sum up

3ds = good
ds= bad
wii= worse

Knushwood Butt2252d ago

Yeah, 3DS is so good they had to cut the price by 40% !!!!!!

Ddouble2252d ago

710k for the quarter is good?

I think the only reason their forecast hasn't changed is because they slashed the price by quite a bit.

It's a lot closer to a DS so people will just get the 3DS instead.

Drekken2252d ago

What is your formal title over at Nintendo? Fact Skewer?

tiffac2252d ago

This report is not surprising for a couple of factors.

Since the Wii U was announced the sales of the Wii has gone down significantly than ever before.

Since the 3DS hit the market it took a chunk of the market from the DS. Essentially you have two products by the same company fighting against each other.

The Yen is stronger than the Dollar and continues to do so. This affects all Japanese exporters greatly. I expect Sony to have the same issues in this regard.

Knushwood Butt2252d ago

In summary, they announced the Wii U way too early (so early that even Nintendo don't know what it is supposed to do), and releasing a DS 1.5 at a significantly higher price than the DS, with nothing but ports to play, was a dumb move.

On top of that, they had to contend with the announcement of the Vita at an extremely competitive price.

tiffac2252d ago

For me the announcement of Wii U was unavoidable but I think the release of the 3DS without the AAA games was the thing they made a mistake on.

Also it seems that Ninty is dropping the price of the 3DS in Japan according to their latest financial release. This one I can honestly say I didn't expect to come this early.

http://www.vgchartz.com/art...

Knushwood Butt2252d ago

As for the Japanese price drop, it's official:

http://www.nintendo.co.jp/3...

10,000 JPY price cut.

Old price of 25,000 down to 15,000 from August the 11th.

Like I said - a 40% price cut...

jacksonmichael2252d ago

Well then they should get localizing games...

CrescentFang2252d ago

Maybe they should bring over some more Wii games outside Japan :)
(Though I want to play Fatal Frame IV more than Last Story and Xenoblade atm, I think it's playable without it being translated, but with the other two, I think a translation is needed to fully enjoy it)

AceofStaves2252d ago

^ This. It's a shame that Nintendo has been so reticent to localize titles for the West.

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