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Nintendo records Q1 loss of ¥25bn

Appreciation of yen blamed with overseas accounting for 87% of sales; DS hardware and software sales also down

Nintendo has recorded a loss of ¥25.2 billion ($288 million) for the three months ended June 2010, compared to a profit of ¥42.4 billion for the same period last year.

The company blamed lower prices of DS hardware and an appreciation of the yen - overseas sales accounted for 86.5 per cent of business during the period.

Net sales for the three months were ¥188.6 billion ($2.1 billion), down from ¥253.5 billion, with operating income of ¥23.3 billion ($266.7 million), down from ¥40.40 billion.

During the period Super Mario Galaxy 2 sold 4.09 million units worldwide said Nintendo, with Wii hardware sales of 3.04 million units. Software sales for the home console were 28.17 million units.

Nintendo sold 3.15 million DS units for the three month period and 22.42 million DS games. Although the company highlighted strong sales of Pokemon Heart Gold and Soul Silver, and Tomodachi Collection, fewer newer releases impacted hardware sales.

Despite the losses, Nintendo continues to forecast a financial year profit of ¥200 billion and operating profit of ¥320 billion.

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Latest comments (9)

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.6 years ago
Nintendo took a one time $794 million foreign exchange loss which is what resulted in the overall $288 million loss.

This is only the second time in company history to have a quarterly loss and both were for the exact same reason.
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Phil Elliott Project Lead, Collective; Head of Community (London), Square Enix6 years ago
The appreciation of the Yen is going to be tough on the company when such a big proportion of sales are overseas. I don't think they're quite in the danger zone yet though...!
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Jack Loftus Contributing Editor, Gizmodo6 years ago
Thank you, Jim, for the context!
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Simon Small Studying Bachelor of Multimedia (Games and Interactivity) / Bachelor of Science (Computer Science and Software Engineering), Swinburne University of Technology6 years ago
Odd. I thought it was the third quarterly loss ever.
I seemed to recall that they had one loss in the GameCube days and one loss in their very early days of Hanafuda.

I could be mistaken however.
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David Amirian Writer 6 years ago
the sky is falling
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Jason Sartor Copy editor/Videographer, Florida Today6 years ago
SMG2 sold more than 4 million units in a about a month (Release was May 23, NA, May 27, Japan and June 11, Europe). Has there been a quieter 4 million unit seller?
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Haven Tso Web-based Game Reviewer 6 years ago
I think there could be more companies running into similar trouble as Square Enix, Capcom and the like are turning their main focus to overseas market. The magnitude seems to be just the tip of the iceberg if with such sales on the Nintendo part they still posted a loss for the quarter. This could be an alarm bell for other Japanese companies pushing expansion in the west, especially the States. It will be interesting to see how the next quarter plays out.
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Alfonso Sexto Lead Tester, Ubisoft Germany6 years ago
They already said they were selling less Wii's and DS in the last months... maybe because everybody and they grandparents already have a Wii.

Doesn't Nintendo know about the yer 1929
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Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.6 years ago
Wii is up year on year. It's the DS that is down.
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