Nintendo reports first ever annual loss
Nintendo have reported their first ever annual loss, confirmed through an earnings report that the company released today.
Whilst an operating loss of 37.3 billion yen was listed, an exchange loss of 27.7 billion yen increased the company’s ordinary loss to 60.8 billion, which brought an overall net loss to 43.2 billion.
In terms of sales it made a net loss of 43,204 million yen (£330 million), against overall sales of 647,652 million yen (£5 billion) during the fiscal year which ended on March 31st 2012.
To provide contrast, last year Nintendo reported a net gain of 77,621 million yen (£593 million) on sales of 1,014,345 million yen.
Explaining reasons for such losses, Nintendo cited a strong yen, as well as price reductions for the Nintendo 3DS and Wii.
As for plans to rectify such financial woes, Nintendo will continue “to pursue its basic strategy of ‘Gaming Population Expansion’ by offering compelling products that anyone can enjoy, regardless of age, gender or gaming experience.”
It is expected that the Nintendo 3DS will no longer be sold at a loss by September 2012, with Nintendo aiming to achieve sales of 820 billion yen and a net profit of 20 billion yen within the current fiscal year.