News Article

Nintendo Confirms Financial Loss for First Quarter

Posted by Thomas Whitehead

Not a surprise

As you may recall, Nintendo announced its first annual loss in 30 years in April, as the company faced the music for problems with the 3DS launch and a declining Wii. It's just announced its results for the first quarter of this current financial year and, as anticipated, it's a loss.

In the three months that ended 30th June this year, Nintendo's net loss was just over 17 billion Yen, which a straight currency conversion puts at around $217m USD or £140m GBP. A loss was anticipated as Nintendo has been losing money on 3DS hardware sold, though it has now confirmed that from 25th July that will no longer be the case. The report did confirm that the projected year end profit of 20 billion yen remains unchanged; this suggests that the company isn't surprised or alarmed by the results.

In terms of 3DS sales, they were described as 'robust' in Japan, with 920,000 sales, but the worldwide total of 1.86 million is a concern, as the rest of the world only just matched the sales in Nintendo's homeland. The company has stated that the launch of 3DS XL, and the beginnings of retail downloads with New Super Mario Bros. 2 is expected to improve momentum from the fall onwards outside of Japan. We should also note that in the equivalent quarter last year, when 3DS flopped badly after launch, it sold just 710,000 units worldwide.

Overall, the results are no real surprise, with the notable disappointment being the low momentum of 3DS outside of Japan. It's encouraging news that, at this stage, Nintendo is still projecting the same profit for the year end: much will ride on 3DS XL, big name games and, of course, Wii U.

[via nintendo.co.jp, eurogamer.net]

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User Comments (54)

BenAV

#1

BenAV said:

The 3DS (and XL) are probably going to start selling like crazy once NSMB2 comes out and hopefully it can continue with its momentum after that.
It's such an awesome system, more people need to get on board.

mamp

#2

mamp said:

I'm just hoping Nintendo doesn't start popping out games like crazy in order to make profit, not gonna lie something about Super Mario 3D Land, MK 7, and Mario Tennis Open made me feel like they were rushed, they seemed to lack that somewhat special Nintendo quality most Nintendo games seem to have.

H_Hunter

#3

H_Hunter said:

A game such as Megaman Legend 3 could change everything in terms of sales and profits for the company.

JustAnotherUser

#4

JustAnotherUser said:

nintendo "Nintendo lost money for the first time in 30 years. Makes games for PS3, 360 and iPhone"

I think Nintendo will be fine. They still have those 1-ups from Super Mario 3D land.

kdognumba1

#10

kdognumba1 said:

They seem to be making a nice turn around to me. Hopefully they continue with the Wii U.

kingofe3

#15

kingofe3 said:

@Mahe There are plently of games to buy, just not as many as Japan's. Some titles in Japan are built towards their audience, therefore some titles cannot be localized. Even if they did, they would no doubt have no effect on sales. I can't really name one title in Japan that would increase sales other than the ones confirmed to already being brought over.

Shock_Tart

#17

Shock_Tart said:

mahe thats because they, for some weird reason. think that all the 3ds titles that are in japan wont sell well enough, cough MH tri 3d cough and some others as well. nintendo and other game companies need to grow a pair and start releasing outside of japan.

Bankai

#18

Bankai said:

@Shock_Tart Monster Hunter Tri didn't sell particularly well in the West on the Wii. And there were a hell of a lot more Wiis out there than 3DS'.

The definition of insanity is doing the same thing over and over again and expecting different results.

cfgk24

#20

cfgk24 said:

Lol! I own 3 3ds consoles!
I might soon own another 2 3dsXL as I get a Euro one and a US one (for running Korg DS10+)

cfgk24

#21

cfgk24 said:

Problem is - I only buy 1 game Cart and not 3 so Nintendo might be wondering why they've sold so many consoles but not so many games!

XCWarrior

#22

XCWarrior said:

Things are going to get better as they said. I'm up to 6 3DS games, 2 downloads thus far. I'll be buying MH4 day 1, among other games. Everything looks like it will be OK from here on out.

Koos

#30

Koos said:

MH Tri actually sold very well in the west. Capcom said they were happy with the numbers. Vgchaetz though dunno if unreliable says 550,000 in NA. 1 million in Japan doubled to two worldwide. And there this here on the website. <a rel="external" href="http://www.nintendolife.com/news/2010/05/monster_hunter_3_a_roaring_sales_success_in_uk">http://www.nintendolife.com/news/2010/05/monster_hunter_3_a_roaring_sales_success_in_uk</a>So it makes perfect sense to release the next installments on wii u or 3ds in the west and apparently they are. Announcements soon they say.
Btw, the quote about insanity is actually misattributed to Einstein.

Lunapplebloom

#31

Lunapplebloom said:

Well this was expected, now it will be interesting to see what happens going forward. I'm sure they be ok, I'm just cautiously optimistic.

ajcismo

#32

ajcismo said:

Easiest way to get some 3DS sales between Jan-Sept: Start putting out AAA games during that time and stop waiting until just Christmas.
Seriously Big N, you would ship tons of units the first half of the year if you released more than 1 killer app in that time. Not all of us want to wait until the holiday season for 2 dozen titles and a new console to drop a ton of money on. Spread it out a little, your North American consumers would appreciate that.

WaLzgiStaff

#33

WaLzgi said:

You can't expect a game to sell well just because you like it. Like Choco said, there were a lot more Wiis than 3DSes. I doubt 3G would make that much of an impact.

If they want a big impact, they need to make a 3DS Pokemon game and stop making lousy excuses for making DS games. Promote your products Nintendo!

Mahe

#34

Mahe said:

@kingofe3 You're missing the point. At least Japan has some titles, outside Japan there's pretty much nothing interesting, and many titles are unconfirmed or coming only after ages like 2013. The 3DS has been hurting with its poor game library for a long time now, and that's why I'm really disappointed in my purchase and not recommending a 3DS to anybody.

kingofe3

#35

kingofe3 said:

@Mahe Well that's a completely other opinion. People can choose whenever the current line-up is worth their money or not. If you don't find it impressive compared to Japan's then that's you. I can still recommend a 3DS to anyone for the games already announced. If they don't like it, then oh well.

brucelebnd

#36

brucelebnd said:

I'd buy a 3DS but honestly it doesn't have much that I want to play and the eshop isn't that much better. I just can't justify spending $200 to play a few games and DLs from the eshop, esp if you already own a DSi it's really pointless owning a 3DS.

LittleIrves

#37

LittleIrves said:

It's remarkable that Japan buys nearly 1/3 of the entire world's 3DS hardware. They love them some handheld Nintendo. No wonder the companies gear their releases toward a Japanese marketplace. Now if only the thing wasn't region-locked...

kingofe3

#38

kingofe3 said:

@brucelebnd But, honestly speaking the eShop is a 1000x times better than the DSi shop was and ever will be. Just saying because I upgraded from a DSi myself. Not sure if DSiWare games will keep you from upgrading since the eShop has access to all DSiWare games and is backwards compatiable.

ADaviii

#39

ADaviii said:

The reason why I do not have a 3DS is because I do not find the games available interesting enough to warrent a purchase. I'm also in no rush to spend the 149 plus tax (or however much it is) when Im happy with my current DS Lite. Im aware that it is backwards compatible, but why should I drop over 150 bucks to primarily use it as what I already have without paying an extra 150? Not saying that wont change, but its how Im feeling.

Koos

#40

Koos said:

I'm always amazed at the amount of games people want. For me there are always too many games. . recently we saw Kid Icarus and Mario Tennis and FF TheaterRhythm And now KH and also Heroes of Ruin anD Rhythm Thief and LegoBatman and Spiderman if that's your thing and Order up and crush3d And Origins and bombmonkey and art of balance and marvel pinball.... and in addition to all the exisitng titles that are well known (MK, SML3D , ocarina, RE:R, Shadow Wars, DoA , pushmo, freakyforms must own)And games coming soon like Nsmb2 and Luigi mansion 2...

Onett

#41

Onett said:

@mamp Agreed. I like to believe that they were rushed out to improve holiday sales for the 3DS that year. Needless to say, I'm sure they've learned their lesson.

The proof is out there. I can't remember if it was Shigeru or Iwata that referred to Super Mario 3D Land as an appetizer when comparing it to Mario Galaxy. That article gave me the feeling that he was openly admitting that it was a lacklustre game. I also remember reading somewhere that Shiggy wasn't happy with the development of Mario Kart 7. So there you have it folks. Again, I'm sure they've learned their lesson.

Random Onett fact of the day: Mario Kart Wii is still my favorite Wii game. It is far more superior to MK7 in almost every aspect and probably the best online game for the console if it weren't for the hackers.

ADaviii

#44

ADaviii said:

Not to sound rude (I apologize if I do), but I have little to no interest in any of the games you've listed Koos.

I want to see games that not only look like fun but prove that 3DS is more than just a DS with more power and 3D capabilities. SML3D does a good job of proving the 3D, but it's the first time I didn't find a Mario game very fun looking. Just like how I want to see games for PS Vita that proves it's more than just a PSP with more power and a touch screen (and for that price I'm going to need a full library).

DS did that for me. It had games that I could completely understand not being able to play on the GBA (unless I want to play it very inefficiently) and they looked fun to play to boot. Not because of the graphics, but because I doubt games like Kirby Canvas Curse or Trauma Center would work as well on GBA as it would on DS. ;) . I do have high expectations, but they have been met by every Nintendo handheld up until now (including the GB Color which included games who's puzzles revolved around color).

Trust me, I'm a Nintendo fan (I'm actually a SEGA turncoat to Nintendo), but I need more out of the 3DS than what I'm seeing. I'm not saying it wont come, but it's just not there now.

Freak-Show

#46

Freak-Show said:

It doesn't matter how many games there are but the quality of them. If Nintendo builds up too much hype on games like NSMB2 and releases a dissapointing title this will keep on happening until the company dissolves and leaves us with those freaking 1st-person-shooter fanboys at Sony and Microsoft. :|

torotoid64

#48

torotoid64 said:

Well right now to me the only 3ds game that made go wow was kid Icarus uprising, Mario 3d land felt like a smaller version of Mario galaxy, Mario kart 7 felt exactly the same to Mario kart ds, legend of zelda oot and starfox 3d were just horrible remakes (zelda was ok), And I have a freeing I wont like nsmb that much either oh and kingdom hearts is my second favorite game for the 3ds :I I hope ill find better games for my poor widle 3ds cause when I'm not out playing online and whipping some dark team butt my 3ds is busy collecting dust

Slapshot

#50

Slapshot said:

@Koos That's not "very well" for such a big budget game, especially with the massive install base that the Wii has.

Koos

#51

Koos said:

@slapshot wrong. Capcom thought it was well I think they know better and what do you men big budgeted game? Not that big. Its a wii game and for Japan. It is the best selling MH ever in the west. PS2 had better install base and sold worse. It is a great achievement.

Mahe

#52

Mahe said:

@Koos I don't want ports like Ocarina of Time. I don't want to buy a ridiculous add-on like the Circle Pad Pro. I also don't want licensed trash or sequels to GameCube games. Most of all, I don't want Mario games. Mario 3D Land is just a boring and uninspired game, and I seriously don't want Mario Sports rehashes.

The DS had fresh, unique and interesting games. Sure, it had Mario games, but it also had a lot of other games. The 3DS game selection is bad because the games are bad. Give me WarioWare, Trauma Center and Plants vs. Zombies. Or rather, not those exact games but something that similarly breaks the mould.

ElementalChaos

#53

ElementalChaos said:

Once again, I am NOT surprised.

Nintendo is suffering because of it's public image of being a "kiddy game" and their competitors are starting to market towards the casual audience, stealing Nintendo's user base. I have a bad feeling the Wii U will not do much to solve this issue.

ElementalChaos

#54

ElementalChaos said:

Perhaps eventually Nintendo will back out from the console industry and focus solely on handheld systems if this financial loss continues. Hopefully that won't be the case.

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