Nintendo Suffers 29.1 Billion Yen Operating Loss

[Karloff]

Nintendo Suffers 29.1 Billion Yen Operating Loss

Nintendo's operating results were negatively affected by a strong Yen and Wii U manufacturing costs.

Nintendo has released its operating results for the six months September 2012, and they don't make for happy reading. A strong Yen, which negatively affects exports, and manufacturing costs associated with the Wii U, its latest console due out in November, were cited as the two main factors behind its 29.1 billion Yen ($364 million) operating loss for the six month period ending September 2012.

A modest gross sales profit of 44 million Yen was eaten up by operating expenses of over 73 million, resulting in a loss for the period. Geographically while net sales in Japan are doing very well, sales everywhere else aren't so great. North America is holding steady, with only a modest decrease; sales in the rest of the world have suffered a significant dip.

Wii hardware sales in particular have taken a hit, in Japan and everywhere else. In the Americas Wii sales are pretty much in freefall, actual hardware sales dropping more than 67% over the previous 2011 period, in the six months ending September 2012. A lack of new title releases - despite the success of Mario Party 9 - was cited in the report as the reason for this decline.

Source: Nintendo report [http://www.nintendo.co.jp/ir/pdf/2012/121024e.pdf]


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[l3o2828]

73 million?
Maybe the costs are SLIGHTLY bloated, Nintendo?
Did you REALLY think this was gonna sell?

 

[robinkom]

They're more than likely banking on a strong holiday season with the Wii U to recoup the losses.

 

[Fin Morrison]

that's what happens if you keep remaking the same shit over and over

 

[gardian06]

They're more than likely banking on a strong holiday season with the Wii U to recoup the losses.

business profit/loss goes in cycles for any company, and any product, and as such this is just a down period. this is why Microsoft is Doing this [http://www.escapistmagazine.com/news/view/120302-Subsidized-Xbox-Pops-Up-at-Four-U-S-Retailers] to boost 360 sales so that they don't have to report a loss on the system because of market saturation, and to have people finally replace the gen 1 systems that have survived all this time.

 

[gardian06]

That's what you get for following the Italian business model.

WTF are you even talking about. this has no context, and makes little sense without it.

 

[robinkom]

They're more than likely banking on a strong holiday season with the Wii U to recoup the losses.

business profit/loss goes in cycles for any company, and any product, and as such this is just a down period. this is why Microsoft is Doing this [http://www.escapistmagazine.com/news/view/120302-Subsidized-Xbox-Pops-Up-at-Four-U-S-Retailers] to boost 360 sales so that they don't have to report a loss on the system because of market saturation, and to have people finally replace the gen 1 systems that have survived all this time.

Right, right. I had trouble figuring out why this is news to anyone. And my statement was a bit generalized. The Wii U will sell at a loss, like all consoles when they're brand-spankin'-new. Losses will be eased with software sales and the console itself won't start to turn a profit until much later in it's life cycle when manufacturing costs are lower and production of the units is streamlined.

 

[gigastar]

73 million?
Maybe the costs are SLIGHTLY bloated, Nintendo?
Did you REALLY think this was gonna sell?

The WiiU isnt due out for another 3 weeks anywhere so im not quite sure what youre talking about.

 

[Mr. Omega]

Well the WiiU has had a high manufacturing cost with no chance at all to actually generate revenue to make it up. Kinda figures that there'd be a loss. What I'm curious about is how the 3DS did, because that could actually be a problem.

 

[slacker2]

.

 

[l3o2828]

73 million?
Maybe the costs are SLIGHTLY bloated, Nintendo?
Did you REALLY think this was gonna sell?

The WiiU isnt due out for another 3 weeks anywhere so im not quite sure what youre talking about.

I'm just saying that the cost of production seems kinda bloated for a console that isn't very liked by the general audience.
maybe i'm wrong.

 

[New Frontiersman]

Well that's a depressing headline. I do hope they manage to make this up over the holiday season when they actually begin to start selling Wii Us.

 

[medv4380]

I'm surprised they didn't do worse.
Page 7 of the report shows that new Software is down a lot more than others have been reporting. It varies from System to System but it looks like they are anywhere form 50% to 75% down in the number of new titles being made. GameStop only cited a 20% - 30% decrease in new titles so I wasn't expecting Nintendo's report to be that different but there it is.

 

[antipunt]

Hmm....

this sounds like me playing Dawn of Discovery

so much red :sigh: ..

 

[Aiddon_v1legacy]

And of course people grossly misinterpret data because the Escapists' mindset is "An excuse to bash Nintendo!? WHEEEEE!!!" like Miyamoto beat them up and stole their lunch money.