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Thursday, April 26, 2012

Nintendo Posts $530 Million Loss (don't worry Nintendo's not going to die)

Today Nintendo posted a $530 million loss (that's $274.57 million less than the expected $804.57 million loss) for the 2011-2012 financial year. Most sites are blaming poor hardware sales (or Apple) because at the beginning of the fiscal year, Nintendo expected to sell 16 million Nintendo 3DS consoles (they sold 13.53 million Nintendo 3DS units), 13 million Wii's (they sold 9.84 million Wii units), and 11 million Nintendo DS's (they sold  5 million  Nintendo DS units).  Though the main reason why Nintendo is losing money is because the Yen is doing really good, making it so that when Nintendo converts the USD into Yen they only get so much.

Here are some articles explaining why Nintendo is not in any trouble:

Nintendo’s Closure 60 Years Away by Tynan Muddle on
In Defence of Nintendo by Tynan Muddle on
(Yes, I know both of the articles are by the same person on the same site. Aussie-gamer is one of few sites that has a fair view of Nintendo.)

Nintendo also told some of their plans for the 2012-2013 financial year:
"For the "Nintendo 3DS," its hardware has been sold below cost because of its significant price cut in the fiscal year ended March 31, 2012. However, Nintendo expects to cease selling it below cost by the middle of the fiscal year ending March 31, 2013. As for the "Nintendo 3DS" software, a totally new side-scrolling action "Super Mario" in 2D called "New Super Mario Bros. 2" will be released this August, and the latest version of the popular franchise for this handheld device, "Animal Crossing," is scheduled to be launched this fall in Japan. The newest title in the "Brain Age" series, with which people can brush up their "working memory" (a brain function of processing or utilizing the incoming information with information kept in the brain) and "concentration power" at the same time, will be released by this summer in Japan. Moreover, Nintendo will attempt to maintain the popularity of evergreen titles such as "SUPER MARIO 3D LAND" and "Mario Kart 7," and release compelling products one after another, in order to further expand the sales of the "Nintendo 3DS." Also, Nintendo will roll out the "Nintendo 3DS" in Asia in due course.
Nintendo will release the "Wii U," the successor of the "Wii," mainly in Japan, the United States and Europe at the end of this calendar year, and propose a new play style of home entertainment with its unique controller embedding a 6.2 inch touch screen.
Nintendo continues to pursue its "Gaming Population Expansion" goal based on the idea of putting smiles on many people's faces by offering brand-new entertainment that anyone can enjoy, regardless of age, gender, or gaming experience.
Nintendo strives to spread the "Nintendo 3DS" released last year, will endeavor to spread the "Wii U" to be released at the end of this calendar year, and will keep on offering not only Nintendo-developed new games but games and services making use of the capabilities of those systems by collaborating with software publishers while positively promoting potential evergreen software titles.
Moreover, Nintendo will push forward with "Nintendo Network," which is the network service for the "Nintendo 3DS" and the "Wii U," and offer game experiences, which enable users to compete and interact with others all over the world, and provide add-on content by utilizing its network functions.
Furthermore, for the purposes of adapting to the changes in the environment surrounding the video game market and creating new business opportunities, Nintendo is envisioning the digital distribution of packaged software and is aiming at expanding the digital business.
In the challenging and competitive video game industry, which consistently requires new and innovative products, Nintendo will continue striving to expand its offerings of compelling products and services by capitalizing on being a platform holder with powerful in-house software development teams.

Some of Nintendo executives will be discussing more of the company's plans for the 2012-2013 financial year and beyond in an investor's presentation the morning of April 27 in Japan (or tomorrow afternoon PST). I'm hopeful that that's when my predictions for what Nintendo will announce will come true.

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