Nintendo posts Q2 loss; predicts full-year profit
Nintendo posted a $220 million loss for the quarter ending June 30 2012; this was better compared to its loss in the same quarter last year of $326 million
Nintendo has announced a net loss and drop in revenue in its Q2 2012 earnings report.
According to the report, Nintendo had a loss of 17.23 billion yen ($220.42 million) in the quarter ending June 30, 2012. This is better compared to the gaming giant's loss at the same time last year that was close to 25.5 billion yen ($326.22 million).
Nintendo also posted revenue of 84.81 billion yen ($1.1 billion), a 9.7% decline in revenue. The company attributed this loss to a strong yen and slow sales of its Wii console.
The Nintendo 3DS portable console debuted in March 2011, with a muted interest from gamers. By August 2011, the company decided to reduce prices for the console from $249.99 to $169.99 in August.
After the drop in price, sales boomed, albeit perhaps only in Japan. Europe and USA sales were still tepid. In March 2012, on the 3DS' first anniversary, Nintendo announced it had sold 4.5 million units of the portable gaming console.
Nintendo also posted its first annual loss ever in April 2012, where it suffered a 37.3 billion yen ($477 million) operating loss and a net loss of 43.2 billion yen ($553 million).
The company is still hopeful for the future, where it predicts a strong response to its two latest consoles, the 6.2-inch Wii U, and the 3DSXL. It predicts a net profit of 20 billion yen ($256 million), an operating profit of 35 billion yen ($448 million) and revenue of 820 billion yen ($10.5 billion) for the year through till March 2013.