Nintendo slides to massive loss as revenue falls off a cliff

The game company saw its revenue slide by 36.2 percent during the fiscal year that ended March 31, pushing the previous year's profit into a huge loss.
The 3DS and Wii could do nothing to save Nintendo during its most recent fiscal year.
The company today released the results of its fiscal year that ended March 31 (PDF) and revealed that revenue slid 36.2 percent compared with the previous fiscal year. Nintendo ended its year with revenue of 647.6 billion yen (about $8 billion), versus over 1 trillion yen in the prior year.
Due to sluggish sales, Nintendo posted a net loss for the year of 43.2 billion yen ($532.5 million). In the prior year, it had generated a profit of 77.6 billion yen.

Nintendo's troubles over the year were numerous. For one, the company was forced to sell the Nintendo 3DS portable below cost in order to attract customers. This meant that the iconic game firm took a hit on every unit sold. Meanwhile, sales of Nintendo's Wii console continued to drag, and the company's software franchises were off the mark on the year. Add that to a strong yen, and Nintendo could do little to turn things around.

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Community2058d ago
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himdeel2058d ago

Can you say Market Saturation coupled with a healthy dose of why do we have this Wii thing again.

Hisiru2058d ago (Edited 2058d ago )

Massive loss? Lol... it was expected by Nintendo and it's not "massive" The results are better than what they were expecting. Something is wrong with the title.

jony_dols2058d ago

Losses of more than half a billion dollars are pretty damn substantial for any company, regardless of how big they are.

shackdaddy2058d ago (Edited 2058d ago )

Don't get why people disagreed with you. The annual loss was lower than what they predicted. I think saying "revenue slides off a cliff" is a bit of an exaggeration especially considering the damage that the yen had this year.

WrAiTh Sp3cTr32058d ago

It's not as bad as Sony's situation...

KonaBro2058d ago

What does Sony have anything to do with Nintendo losing profits? Salty much?

ronin4life2058d ago (Edited 2058d ago )

They are also expecting a return to profitability by next years earnings briefing.
And like I said before, in the previous year Nintendo made nearly twice what they lost this past year.
"Massive losses" is over exaggerated all things considered, as it sounds like there are no layoffs and this is a one time thing in the past 30 years.

Denethor_II2057d ago


" The results are better than what they were expecting. Something is wrong with the title."

Don't you mean "than 'we' were expecting".
Where did all these Ninty fanboys come from all of a sudden? lol.

+ Show (3) more repliesLast reply 2057d ago
morkendo232057d ago (Edited 2057d ago )

This meant that the iconic game firm took a hit on every unit sold. Meanwhile, sales of Nintendo's Wii console continued to drag,

Sound like 60gb ps3 first started off taking a hit every console back in 2006

Fel082058d ago

Games in general are just not selling too well nowadays. But if Nintendo play their cards right and do the right promo for the Wii U, and have a nice line up of games when the console gets released, I see it being successful. Probably not as successful as the Wii, but remember, people were bashing the Wii left and right before it came out, and look how it turned out.

ozstar2057d ago


Just look at the sales of MK and Mario Land 3D.

2057d ago
fermcr2058d ago (Edited 2058d ago )

After so many losses from the first Xbox and the X360 RROD, who would of thought that out of the console manufacturers, only Microsoft would be presenting a profit in their gaming division by this time, and have been for a few years now.

BitbyDeath2057d ago

Microsoft aren't the only ones.

2057d ago
Anon19742058d ago (Edited 2058d ago )

Wow. We had heard speculation about Nintendo's reversal of fortune, but to swing from a profit of 77.6 billion yen to a loss of 43.2 billion yen in one year - that's not a dip, that's a collapse. Their fire sale on the 3ds is killing them compared to the the profits the DS brought in day one. But what can they do? They need to establish the install base or developers are just going to pack it in and at least they think the 3DS hardware will be profitable 6 months or so down the line.

And even though they hope things will pick up, their own forecasts only call for $250 million for the next fiscal year. Investors aren't going to be happy with that. Good thing the company is flush with cash still from old Wii/DS sales. But if the Wii-U underwhelms (and they're already saying the thing has to sell at $350 just to break even) what then, Nintendo? Mario on the PS3? Are you going to go the route Sega went?

Edit below: I didn't say that was going to happen. I speculated at what could happen if the Wii-U doesn't take root and the 3DS continues to underperform outside of Japan. What do you think will happen if those two scenarios play out? Nintendo will just ride it out until next gen like nothing is happening? And I'm not the first one to suggest that Nintendo could greatly profit by licensing out their top franchises. You know what kind of crazy amounts of cash Nintendo could rake in if they put out a Mario game on the ipad/iphone, for example?

Fel082058d ago

Did u just say that Nintendo is going in the same route as Sega and "Mario on the Ps3"? Wow, that just shows you have no idea what you are talking about.

shackdaddy2058d ago (Edited 2058d ago )

What's with this "Mario on the PS3" comment? SONY is doing pretty bad too. $6.4 billion bad - about 12x the loss Nintendo had.

I guess here on N4G when SONY losses $6.4 billion, they'll be alright but when Nintendo losses $5.3 million for the first time in history, they are all the sudden doomed... smh

Edit @ your edit: Lol. Dude, 3DS is doing great worldwide. It's one of the top selling hardware everywhere. And that idea with licensing to iphone is completely stupid. Nintendo has a handheld. Why would anyone buy their handheld and pay $40 per game if they can use their iphone and pay $5 per game? THAT would doom them. I'm sure glad you aren't running Nintendo...

erasure2422058d ago

Mario to PS3? LOL... um... Compared to the Sony's loss this year Nintendo's 43 billion Yen loss is not that bad... Sony more than doubled its projected net loss for the past financial year to ¥520 billion...


mr_badhand2058d ago

Nintendo's first loss in three decades and you are already worried, predicting doom, going on about investors and suggesting they should license out their hot IP's.

Sit back and relax Darkride, Nintendo has billions upon billions in the bank. This is no different from any other company taking a hit in this economy.

+ Show (1) more replyLast reply 2058d ago
Tenkay232058d ago

If nintendos loss of $523 million is massive, then wtf do you call Sony's loss of $6 billion?

Jihaad_cpt2058d ago

what hardcorehippiez said below. You cannot compare the 2. Sony employs way more people and their losses are spread over a lot of divisions.

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