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Nintendo Reports Quarterly Loss in Income and Sales

by Karlie Yeung - July 29, 2010, 5:56 am EDT
Total comments: 20 Source: http://www.bloomberg.com/news/2010-07-29/nintendo-..., (Bloomberg)

Slowing DS sales and stronger yen are contributing factors.

For the first time in more than two years, Nintendo has posted a loss for the quarter ending June 30 2010. Net loss was 25.2 billion yen ($289 million), a 42 percent drop compared to the same period in 2009. Sales revenue dropped 26 percent to 188.6 billion yen ($2.1 billion).

The large drop in revenue has been attributed to slowing demand for the Nintendo DS, including a 33 percent drop in US sales last month, and the stronger Japanese yen. In total, 3.15 million DS units were sold compared to 5.97 million in the same period last year, a 47 percent drop. Software sales experienced a 23 percent drop to 22.4 million units. Wii hardware sales in fact increased to 3.04 million from 2.23 million. 

Annual profits for the year ending March 31 2011 are expected to drop 10 percent, to 320 billion yen ($3.6 billion).


PlugabugzJuly 29, 2010


AVJuly 29, 2010

Nintendo of America needs to cut DS prices across the board down $30 to help keep up sales. Yeah it hurts bottom line, but if they get more sales overall and software should get price cut on best sellers like new mario and mario kart to $19.99.

This pretty much guarantees 3DS this year for Japan this christmas

Nintendo's screwed.

YankeeJuly 29, 2010

There are 100 secret Nintendo employees in a secret underground control room in Japan flipping out right now.

Killer_Man_JaroTom Malina, Associate Editor (Europe)July 29, 2010

It was bound to happen sooner or later, what with the DS now in its seventh year on the market. This may actually give credence to a 3DS launch in March or April 2011 - it would ensure that fiscal year 2010's financials look as strong as ever despite the loss last quarter and possibly this quarter.

Interesting how Wii sales have risen. Guess we're still a way off the next console while this momentum is still going.

I'm pretty sure they would have turned a profit for the quarter but for losing 70 BILLION yen (or $700 million US) on currency exchange.

So either they need to relocate to the US, or we're going to get 3DS in Japan this fall/Super Wii next year.

ControlerFleXJuly 29, 2010

Should we be surprised? There should be some ups and downs. This is a down. They've been printing money all this time. Quite a few people MIGHT have heard about there new system coming out, maybe not everybody wants 4 DS's in there household, possibly there are more kids out enjoying the summertime and not sitting on their buts pla..... wait I'm going to far. But you know what I mean.

Due to Nintendo being a BOTTOM LINE driven company, I hope Killer_Man_Jaro is right.

Mop it upJuly 29, 2010

Boo hoo hoo! Nintendo's going to make only $3.6 billion this year! How will they survive?

BeautifulShyJuly 29, 2010

I wish I could have a 10% drop in profit and still be making money hand over fist.

BlackNMild2k1July 29, 2010

Quote from: Mop

Boo hoo hoo! NIntendo's going to make only $3.6 billion this year! How will they survive?

Go 3rd Party?

AVJuly 30, 2010

Quote from: Shaymin

So either they need to relocate to the US

Actually not a bad idea. Does nintendo print and make the hardware in Japan and just ship it around the globe? If that's the case I bet they could save allot more money by just opening factories in each region or am i totally ignorant and stupid in business ?

TJ SpykeJuly 30, 2010

Like most electronics, they are manufactured in China (I just checked my DSi and it says "Manufactured in China", same for my DS Lite). Labor is a lot cheaper there.

KDR_11kJuly 31, 2010

It's mostly a matter of where they're incorporated.

Kytim89July 31, 2010

I have a feeling that we will be getting Skyward Sword, The Last Story. Kiby's Epic Yarn, Xenoblade, and all the other games earliuer than expected because Nintendo wants to stay at a profit.

TJ SpykeJuly 31, 2010

I severely doubt they will release a game early just for a short term boost, that is just bad business. This was just a slow quarter with barely any releases (their only big one was Super Mario Galaxy 2.

KDR_11kJuly 31, 2010

Also it's an exchange rate issue, that'll reverse when the currency trends reverse. Nintendo keeps their cash in USD I believe.

Hyrulian GuardAugust 02, 2010

its funny how business does things.  "We are loosing money!"
no your just not making as much as you did last year.
they are still making money, but not as much.

  When i loose a days work i dont say this pay i lost money.
i didnt make as much as i expected.

At calenders year end, everyone will be talkin about how nintendos
printing money.

TJ SpykeAugust 02, 2010

If you spent more money than you made, then you DID lose money. There is a difference between losing money an just making a smaller profit.

balzzzyAugust 06, 2010

I can't see the DSi XL sales helping any. Especially with the 3DS being announced shortly after it's release.

TJ SpykeAugust 06, 2010

The DSi XL has been selling very well (even outselling the DSi in Japan), so it is helping.

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