Nintendo Losing More Money Than Expected

Illustration for article titled Nintendo Losing More Money Than Expected

For the most recent quarter ending in June, Nintendo showed a 5.1 billion yen ($49 million) loss. According to Reuters, analysts were predicting a 4 billion yen loss. But don’t worry. There’s hope.

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Nintendo showed a group net loss of ¥24.53 billion ($232.1 million) for the quarter, Kyodo reports (via The Japan Times, where I am a columnist.)

This comes as investors were confused over how Pokémon Go will benefit Nintendo, causing stock prices to plummet.

Nintendo, who does seventy percent of its business outside of Japan, blamed the larger than expected loss on the strong yen. Sluggish hardware sales didn’t help, either.

During the same period last year, however, Nintendo netted a 1.15 billion yen profit, Reuters adds.

For the rest of the financial year, Nintendo forecasts its operating profit to climb 37 percent. More optimistically, Pokémon Go has shown huge potential for other Nintendo smart apps, and there’s also the NX around the corner.

Originally from Texas, Ashcraft has called Osaka home since 2001. He has authored six books, including most recently, The Japanese Sake Bible.

DISCUSSION

madkinggarrus
Garrus Targaryen

More optimistically, Pokémon Go has shown huge potential for other Nintendo smart apps, and there’s also the NX around the corner.

One could argue that Pokemon Go shows Nintendo has huge potential as a 3rd party dev/publisher who could dominate mobile gaming and make waves on PS4/XBone.

I guarantee that the first Mario/Zelda/Whatever released on PS4/XBone would be Ninty’s best-selling title in decades. I dunno if it’s pride or what, but Nintendo is limiting its own potential by carrying on this Sisyphean proprietary hardware fight. Embrace the path Sega laid out before you, Nintendo.