Nintendo announces new console but profit dives

Nintendo said Monday it would release a new console next year to succeed its popular Wii, as it reported earnings slumped due to the strong yen and its 3D handheld player came too late to give a lift.

The video game giant said the new machine would be showcased at E3 Expo in Los Angeles in June. The move comes as Nintendo has struggled to reverse its sliding fortunes in an increasingly crowded market.

Nintendo said Monday that group net profit for the year to March fell 66.1 percent to 77.6 billion yen ($942 million), while operating profit slumped 52.0 percent to 171.1 billion yen. Sales eased 29.3 percent to 1.01 trillion yen.

However, the firm did say it expected sales to surge more than 40 percent over the coming 12 months.

The company said it suffered a serious setback as sales of both hardware and software fell in the United States, Europe and Japan.

Nintendo's release in late February of the DS3, the world's first video game console with a 3-D screen that works without special glasses, came too late to lift the results.

The company, which for many gamers is synonymous with its "Super Mario Bros" series, is facing a raft of challenges to its one-time domination of the market.

Traditional gaming rivals such as Sony with its Playstation, and Microsoft whose XBox has been a global hit, have been joined in the fray by smartphones and tablet computers, including Apple's iPhone and iPad which have taken a chunk of the gaming market.

Next year's new console will replace the popular Wii, which has sold 86 million units since its 2006 debut, but has seen a steady decline in recent years.

Sales of Wii hardware dropped 27 percent to 15.08 million units in the past fiscal year, with software revenue falling 11 percent.

It did not elaborate further on the new console.

A strong yen as well as price cuts also hurt earnings, Nintendo said. It lost 49.4 billion yen due to the strong yen as it increased the book value of foreign currency-denominated debts.

Nintendo needs a new boost to its slumping sales.

Global sales of Nintendo DS hardware tumbled 35 percent in the year to March from the previous year to 17.52 million units, excluding the latest 3D models. DS software sales fell 20 percent.

The company said however it expected profit to recover in the coming year.

It forecast net profit to rise 41.7 percent from last year to 110 billion yen. Operating profit is estimated at 175 billion yen, up 2.3 percent, and sales at 1.1 trillion yen, up 8.4 percent.

But Nintendo sounded a note of caution on future consumer spending after the March 11 earthquake that triggered a devastating tsunami along the northeastern coast of Japan.

"The aftermath of the Great East Japan Earthquake is unpredictable," the company said.

The Kyoto-based firm said it avoided direct damage to its factories and production network.

"However, it can be predicted that there will be indirect impact from individual consumption patterns or economic conditions in the future," it said.

Life and Style
ebookNow available in paperback
ebooks
ebookA delicious collection of 50 meaty main courses
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Gadgets & Tech

    Recruitment Genius: PHP Developer

    £25000 - £38000 per annum: Recruitment Genius: With extensive experience and a...

    Recruitment Genius: HTML5 Games Developer

    £34000 - £45000 per annum: Recruitment Genius: With extensive experience and a...

    Recruitment Genius: Technical Support Engineer

    £20000 - £28000 per annum: Recruitment Genius: Looking for an excellent opport...

    Recruitment Genius: Field Service Engineer - Basingstoke / Reading Area

    £16000 - £27000 per annum: Recruitment Genius: This established name in IT Ser...

    Day In a Page

    Seifeddine Rezgui: What motivated a shy student to kill 38 holidaymakers in Tunisia?

    Making of a killer

    What motivated a shy student to kill 38 holidaymakers in Tunisia?
    UK Heatwave: Temperatures on the tube are going to exceed the legal limit for transporting cattle

    Just when you thought your commute couldn't get any worse...

    Heatwave will see temperatures on the Tube exceed legal limit for transporting cattle
    Exclusive - The Real Stories of Migrant Britain: Swapping Bucharest for London

    The Real Stories of Migrant Britain

    Meet the man who swapped Romania for the UK in a bid to provide for his family, only to discover that the home he left behind wasn't quite what it seemed
    Cheaper energy on the way, but it's not all sunshine and rainbows

    Cheaper energy on the way, but it's not all sunshine and rainbows

    Solar power will help bring down electricity prices over the next five years, according to a new report. But it’s cheap imports of ‘dirty power’ that will lower them the most
    Katy Perry prevented from buying California convent for $14.5m after nuns sell to local businesswoman instead

    No grace of God for Katy Perry as sisters act to stop her buying convent

    Archdiocese sues nuns who turned down star’s $14.5m because they don’t approve of her
    Ajmer: The ancient Indian metropolis chosen to be a 'smart city' where residents would just be happy to have power and running water

    Residents just want water and power in a city chosen to be a ‘smart’ metropolis

    The Indian Government has launched an ambitious plan to transform 100 of its crumbling cities
    Michael Fassbender in 'Macbeth': The Scottish play on film, from Welles to Cheggers

    Something wicked?

    Films of Macbeth don’t always end well - just ask Orson Welles... and Keith Chegwin
    10 best sun creams for body

    10 best sun creams for body

    Make sure you’re protected from head to toe in the heatwave
    Wimbledon 2015: Nick Bollettieri - Milos Raonic has ability to get to the top but he must learn to handle pressure in big games

    Nick Bollettieri's Wimbledon files

    Milos Raonic has ability to get to the top but he must learn to handle pressure in big games
    Women's World Cup 2015: How England's semi-final success could do wonders for both sexes

    There is more than a shiny trophy to be won by England’s World Cup women

    The success of the decidedly non-famous females wearing the Three Lions could do wonders for a ‘man’s game’ riddled with cynicism and greed
    How to stop an asteroid hitting Earth: Would people co-operate to face down a global peril?

    How to stop an asteroid hitting Earth

    Would people cooperate to face a global peril?
    Just one day to find €1.6bn: Greece edges nearer euro exit

    One day to find €1.6bn

    Greece is edging inexorably towards an exit from the euro
    New 'Iron Man' augmented reality technology could help surgeons and firefighters, say scientists

    'Iron Man' augmented reality technology could become reality

    Holographic projections would provide extra information on objects in a person's visual field in real time
    Sugary drinks 'are killing 184,000 adults around the world every year'

    Sugary drinks are killing 184,000 adults around the world every year

    The drinks that should be eliminated from people's diets
    Pride of Place: Historians map out untold LGBT histories of locations throughout UK

    Historians map out untold LGBT histories

    Public are being asked to help improve the map