Nintendo Expects To Make a Loss in FY 2011
Posted by James Newton
It's tough out there
Even though the 3DS has hit 15 million sales worldwide, it's not been enough to help Nintendo post a profit, with the company expecting to post an operating loss of 45,000 million Yen in this financial year.
Nintendo revised its financial expectations this morning as follows:
Net sales — revised down from 790,000m Yen to 660,000m Yen.
Operating income — revised down from 1,000m Yen profit to 45,000m Yen loss.
Ordinary income — down from 30,000m Yen loss to 65,000m Yen loss.
Net income — 20,000m Yen loss down to 65,000m Yen loss.
Nintendo cites the continued strength of the Yen and its revised sales targets for its new estimates.
In the financial year to date so far, Nintendo has made a net loss of 48,351m Yen.
#1
ChaosTheChao said:
Belive in yourself Iwata!
#2
Matillion said:
Oh deary me.
#3
James said:
FYI we've used non-standard notation here — 1,000m instead of 1 billion — to avoid confusion: in some countries 1b is 1,000,000,000,000 whereas in some 1b is 1,000,000,000.
Thanks to @Wheels2050!
#4
stromboli said:
Nintendo is doing very well in sales. The results have little to do with Nintendo. It could be much worse: http://au.news.yahoo.com/tech-news/a/-/technology/12709795/sony-and-panasonic-brace-for-grim-earnings-season/ This is the first time Nintendo showed any losses, and when the Yen/Dollar situation improves, Nintendo will make huge profits again.
#5
Wheels2050 said:
@James - actually, the 'US' and 'UK' billions are, officially, exactly the same and equal to 10^9. The use of billion=10^12 is a hangover from an old system that has now been officially phased out of the UK.
http://en.wikipedia.org/wiki/Long_scale
#6
Dev said:
With Iwata having to cut his own salary and the 3DS's slow start, of course Nintendo hit rough waters last year. But I believe last fall started to turn things around for them and they should do better this year.
#7
James said:
@Wheels2050 Well blow me down. That page you linked just warped my brain. Appreciate the clarification though
#8
RantingThespian said:
Yeah, but when they say "loss", that is their income isn't as much as it was the year before.
They are still making money, and lots of it. It's not like Nintendo is in any danger. With the Wii U coming (and after learning from the mistakes from the 3DS launch), their profits are most likely going to sky rocket once it comes out.
#9
Bankai said:
@8 No, loss means earning less money than spending. Loss as binary opposite to profit.
It's really just the yen and a slow start to the 3DS to blame for this one. Nintendo's doing a relatively good job by Japanese corporation standards.
#10
StephenYap3 said:
@4
Thanks. I feel better now
#11
Knuckles said:
Can the Wii U pull Nintendo out of the red and back into the green, and how will the 3DS do in its sophomore year in the big? I say no problems
#12
grimbldoo said:
Nintendo will always be in the lower area of their sales because they themselves don't put out extra garbage that idiots would buy (e.g. DLC)