Nintendo could post $1.32 billion loss Thursday

Nintendo could be heading for some troubled financial waters soon. According to Reuters, a report today from the Japanese-based Nikkei business daily claims that the game console company could record a recurring loss of 100 billion yen ($1.32 billion) for the first half of the company's fiscal year. The company is scheduled to report its latest financial results on Thursday.

Nintendo is facing a number of head winds at the moment. The 3DS portable console has not been the huge hit that many expected it to be, even with an $80 price cut earlier this year. The overall strength of the yen is cutting into Nintendo's profits and finally investors are skeptical about the success of the Wii U, which is scheduled to launch in 2012.

Quite frankly, Nintendo is starting to look a bit old fashioned at this point in its life. It still has some of the biggest game franchises of all time (Zelda, Super Mario, etc) but the company has time and time again shown a reluctance to move into areas of technology that the rest of the world seems to be interested in.

It didn't really care about Internet play until the launch of the Wii console. It still doesn't care about the the mobile phone game market, which is something that both Sony and Microsoft have their hands into right now. Yes, the Wii's motion sensing controller was innovative but the Wii U's big tablet-like controller seems like a step back compared to Microsoft's Kinect camera controller.

Nintendo needs to realize that the game industry is moving fast and it needs to keep up in between console launches. Otherwise it's going to be crushed by Sony and Microsoft.

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14 Comments

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One can say Microsoft was late once again in motion controllers but damn! Nintendo was doing crap before the Wii anyway it just revived them for a few more years. RIP just like Sega.

Main cause of the lost is likely over-production of Wii's and 3Ds. Wii's sales have dropped quite a bit over the past few months, and the 3DS was not a big hit right out of the gate and the price drop while it did boost sales it probably did not stimulate them as much as they would have liked.

Amazing to see one of the pioneers of video gaming get hit this bad. I'm sure that there is a good chance they will recover fine.

adam7288 said,
Apple should buy em - i would love to play their games on modern hardware

Good god that is a horrible idea.

adam7288 said,
Apple should buy em - i would love to play their games on modern hardware

yes, Apple..... I sware the only reason people associate Nintendo with Apple is because of the Wii's design being white, sleak and Apple Esc...

neufuse said,

yes, Apple..... I sware the only reason people associate Nintendo with Apple is because of the Wii's design being white, sleak and Apple Esc...

They both have also both shown that hardware doesn't necessarily need to tout the highest spec's in order to be successful.

But as far as Nintendo being bought out by Apple... I would hate to see it happen, but would love to see some of Nintendo's franchises hit iOS.

neufuse said,

yes, Apple..... I sware the only reason people associate Nintendo with Apple is because of the Wii's design being white, sleak and Apple Esc...

Its not just the industrial design that makes them similar, it is there focus on simple, easy to use software. Have you seen the UI of the Wii's "channel" menu. That is classic apple ux.

The reason apple should buy them is twofold:

1. Nintendo will inevitably be bought, or at the very least become strictly software a la' sega.

2. Apple may have usurped much of the casual gaming market with the app store, they lack deep, expensive, first party games. Gaming is an afterthought to them.

Now the only problem to solve is how to elegantly integrate a button controller with the iphone without making it look like a mutant.

No they're not going to join apple, go multiplatform, or fail like sega. Wish some people would get some intelligence so they can learn that and quit harping on about the same tired old **** that isn't going to happen.

cycles, they had great sales and a big dip before. They look like they are doing it again.

Things might go quiet for a while whilst they lick their wounds and then surpirse everyone again as they did with the wii.
I can't see what they will do this time though unless its true 3d not requiring glasses or a screen