Nintendo to make loss for the first time
Friday 28 October 2011
The Japanese game-maker Nintendo warned it would post its first annual net loss this financial year, cutting its guidance yesterday as the soaring yen and weak software sales dealt fresh blows to the former games industry champion.
The creator of the Super Mario franchise dominated the industry for years with its DS handheld games players and Wii home consoles, but is now struggling to keep up with more versatile gadgets such as Apple's smartphones and tablets.
This year's failed launch of its 3DS handheld games machine – which creates a 3D effect without special glasses – forced Nintendo to slash prices, crushing its profit outlook for the year, while a dearth of attractive software and the yen's strength are causing further pain for the company, which generates 80 per cent of its sales overseas.
Nintendo expects an annual net loss of ¥20bn (£165m), its first such loss in history. In the latest quarter, it posted a ¥19.6bn operating loss.
Yuuki Sakurai, at Fukoku Capital Management in Tokyo, said: "I think they need to change their strategy drastically. Now that people can do so much on their smartphones, will they want to buy a games machine?"
Shares in Nintendo have fallen 50 per cent since 1 April.
- 1 Expert urges cat lovers to own just one animal each
- 2 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 3 The Simpsons death: Creator Al Jean would 'kill himself' before character like Homer or Lisa
- 4 British man raped while urinating in bushes at Oktoberfest beer festival in Germany
- 5 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
Expert urges cat lovers to own just one animal each
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Isis an hour away from Baghdad - with no sign of Iraq army being able to make a successful counter-attack
Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
British man raped while urinating in bushes at Oktoberfest beer festival in Germany
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
'Women, walk wherever you want' posters taken down in Stamford Hill following 'unacceptable' signs separating men and women
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Should gay sex be illegal? 16% of Britons think so
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...