Nintendo Posts First Annual Loss in 30 Years
Posted by James Newton
But lower than expected
Nintendo made a 43 billion Yen net loss in the past financial year. A straight currency conversion puts the loss at $529m USD or £327m GBP.
The company had originally predicted a 65 billion Yen net loss, but clawed back some of the deficit with strong software, particularly in Japan. The Yen also devalued compared to the company's predictions, helping assets in foreign currencies to generate valuation profit.
Last year Nintendo posted a 77 billion Yen net profit, but this year it was hit hard by a 30% drop in sales from last year, mainly in Europe and North America where Wii sales dropped off severely. It also lost money on every 3DS sold after the price drop in August, but predicts a return to profitability for the handheld by the middle of the current financial year.
This is the first time the company's recorded a full-year net loss since it started releasing consolidated earnings reports in 1981. It's forecast a return to profitability for this financial year, expecting to make a net income of 20 billion Yen.