Nintendo Money Printing Press Is Finished. Huge Losses Expected.

Illustration for article titled Nintendo Money Printing Press Is Finished. Huge Losses Expected.

Today in Osaka, Nintendo released its revised forecast for this financial year. Things are not good.

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"We had higher expectations for the year-end season, but failed to meet them," Nintendo Satoru Iwata said today (via Reuters).

Nintendo is facing a bigger than expected annual loss, facing competition from smartphones and battling a strong yen as well as rivals Microsoft and Sony.

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According to Reuters Nintendo is expecting an annual operating loss of ¥45 billion ($575 million). Analysts originally forecasted a lost of ¥4.2 billion yen.

Hardware sales are not meeting expectations—though, things could be worse. Back in Oct. 27, 2011, Nintendo forecasted hardware sales at 6 million DS units shipped for 2012, but as of Jan. 26, 2012, changed that number to 5.5 million DS units. For DS software, the forecast changed from 62 million to 59 million units.

On Oct. 27, 2011, Nintendo forecasted 12 million Wii units sold in the 2012 financial year. That number was revised to 10 million units. Wii software was originally forecasted at 100 million. That number was unchanged.

The 3DS is both on the comeback trail, but still underperforming. On Oct. 27, 2011, Nintendo forecasted 16 million 3DS units shipped. That number has been changed to 14 million. For 3DS software, Nintendo forecasted 50 million units shipped. On Jan. 26, 2012, that number was changed to 38 million units ship—a huge drop.

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Earlier this year, Iwata said he was taking the blame for the 3DS by taking a 50 percent paycut.

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Fund manager Mitsushige Akino told Reuters, "Their time of growth (from consoles) is over, and, while I don't think the company will cease to exist, if they don't move into new categories, they will no doubt lose the great scale they've amassed."

Nintendo wowed gaming with an impressive run that included the Nintendo DS and the Wii, spawning the generation of game consoles. That run, it seems, is over.

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Nintendo is heading for its first annual loss in thirty years.

Nintendo sees first annual loss, cuts 3DS forecast [Reuters]

(Top photo: Chiaki Tsukumo | AP)

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DISCUSSION

"Nintendo is facing a bigger than expected annual loss, facing competition from SMARTPHONES and battling a strong yen as well as rivals Microsoft and Sony."

STOP IT.

Where the hell is this evidence that Smartphones are affecting Nintendo's sales, there really isn't any. Smartphone games, on the whole, are crappy timewasters in the same way Flash games were before them, or even games on mobile phones. Did Snake stop people buying Gameboys back in the day?

Nintendo's profits are down due to the dreadful 3DS launch which was solely down to launch software and price. Once those two factors changed, it has outsold even the original DS in the same time peroid. Hell you have an article 3 stories below this one saying "People Sure Bought A Lot of 3DS Handhelds," and now you're claiming Smartphones are hurting sales?

I don't get what Kotaku's fixation with Smartphones is, but there's not a shred of evidence to show that they're impacting sales of the 3DS. The reasons are obvious why Nintendo's profits are down.