Nintendo Posts 43 Percent Revenue Drop
Posted by Patrick Elliot
For the first time in two years, the Big N posts a quarterly loss
There has been many-a-meme relating to the DS “printing money,” but now a quarterly earnings report from Nintendo suggests the handheld's printer may be running out of ink.
According to the earnings report, which covers the second quarter of fiscal year 2010/2011 running from April 1 through June 30, 2010, demand for the DS has dropped sharply across the globe. The company was able to sell about 3.15 million units worldwide, down from 5.97 million units the same time last year. In the US, sales for the DS plunged 33 percent last month alone. All this comes as the Japanese Yen strengthens against a weakening Euro and Dollar, further reducing Nintendo's earnings abroad.
In its consolidated financial highlights, Nintendo said a lack of software was partly to blame for the platform's poor performance, adding that the new price drop didn't help either.
The lowering of the price of Nintendo DS hardware in Japan and Europe has adversely impacted net sales and operating income.
Furthermore, with a release date pending for Nintendo's next handheld, the 3DS, it’s possible that many consumers are simply holding off on their purchase.
On a positive note, sales of the Wii kept chugging along, moving 3.04 million units worldwide for the quarter, up 36 percent from the same time last year. This was helped in part by strong sales of Super Mario Galaxy 2, which sold over 4 million copies worldwide since its May release. Other successful Wii games for the quarter include Wii Sports Resort (3.02m), Wii Sports (2.73m), Wii Fit Plus (1.87m) and New Super Mario Bros Wii (1.1m). Nintendo's WiiWare service has done well too, growing by 60 million USD in 2009.