Half-year losses of ¥70 billion for Nintendo
Company misses targets and loses ¥52.4 bn on exchange rates
Nintendo has announced a massive ¥70 billion loss for the sixth month period ending September 30, 2011.
The losses fall short of yesterday's predictions in the Nikkei of a recurring ¥100 billion loss, but nevertheless exceed the internally predicted loss of ¥35 billion - thanks to slowing sales of Wii and DS, and the impact of a very strong Yen compared to shrinking currencies worldwide.
In fact, the impact of those uneven currency markets was even greater than expected, accounting for ¥52.4 billion of the company's losses.
Because Japanese companies do large amounts of business in areas with shrinking economies or cheapening currencies, revenues in Yen terms from those areas are rapidly falling.
Net sales for the period were also slightly under target at ¥215.7 billion instead of the predicted ¥240 billion, whilst predictions for yearly net income have been dropped by ¥40 billion from ¥20 billion profit to a ¥20 billion loss.
Hardware sales for the 3DS for the period were 3.07 million units, with 8.13 million units of software shifted for the device. The 3DS port of The Ocarina of Time became a million seller worldwide during that period.
The DS family, excluding the 3DS, sold 2.58 million hardware units and 28.99 million software units worldwide. 3.35 million Wiis were sold worldwide, alongside 36.45 million software units.
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