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Finance

Nintendo records Q1 loss of 25bn

Thu 29 Jul 2010 7:44am GMT / 3:44am EDT / 12:44am PDT
HardwareFinance

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.

10 Comments

Jim Webb
Executive Editor/Community Director

2,266 2,404 1.1
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.

Posted:4 years ago

#1

Phil Elliott
Project Leader, Collective; Head of Community (Live Team)

163 29 0.2
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...!

Posted:4 years ago

#2

Jack Loftus
Contributing Editor

95 0 0.0
Thank you, Jim, for the context!

Posted:4 years ago

#3

Simon Small
Studying Bachelor of Multimedia (Games and Interactivity) / Bachelor of Science (Computer Science and Software Engineering)

18 0 0.0
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.

Posted:4 years ago

#4

David Amirian
Writer

59 3 0.1
the sky is falling

Posted:4 years ago

#5

Jason Sartor
Copy editor/Videographer

104 33 0.3
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?

Posted:4 years ago

#6

Haven Tso
Web-based Game Reviewer

255 8 0.0
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.

Posted:4 years ago

#7
ouch.. but does it really change anything? that is the quesiton

Posted:4 years ago

#8

Alfonso Sexto
Lead Tester

807 637 0.8
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

Posted:4 years ago

#9

Jim Webb
Executive Editor/Community Director

2,266 2,404 1.1
Wii is up year on year. It's the DS that is down.

Posted:4 years ago

#10

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