Nintendo reported results from the nine months ending December 31, 2011 with a lot of bad news. Investors will need to get used to this as the company doesn’t see better times ahead anytime soon.
Kicking off the disappointing news, was a 32 percent sales decline to YEN 556.2 billion ($7.2 billion) during the nine months ending on December 31 as compared to the previous 2010 period. Nintendo also had a YEN 48.4 billion (about $625 million) net loss versus 2010’s near profit of YEN 50 billion.
With the loss, the company has now cut forecasts and will see its first annual annual operating loss of YEN 45 billion yen ($581 million), passing analysts of a YEN 4.2 billion loss. Revised earnings for the full fiscal year (ending March 31) are now YEN 660 billion versus the previously estimated YEN 790 billion.
Nintendo was transparent about the poor time period and said that yes, the company is struggling with slow Nintendo 3DS sales during the fiscal year’s first half and a strong yen, according to CNET. The company noted that the Nintendo “significant” 3DS price cut, from $249 to $169, hit revenue hard.
More bad news for the company included …
poor unit sales data. From April to December 2011, Nintendo only sold less than 9 million Wii units globally, down from 13.7 million units sold in the previous year.
Wii software also had low numbers with its unit sales falling to 89 million globally in 2011 versus 2010’s 150 million units. Nintendo DS took a hit with sales tanking to 4.6 million from 2010’s 15 million.
Was there a bright spot for the company? Yes, in 3DS sales numbers.
During the nine-month period, the portable reported global sales of 11.4 million unit sales, which was stronger than the Wii’s first nine months of U.S. sales. If the 3DS continues to have strong numbers, Nintendo may be able to rely on it for the year.
With that bit of good news, the company then announced that it will launch a Wii U console by year’s end. This will include improved graphics, HD support and a touch screen-equipped controller reported CNET. For now, don’t expect a lot of positive news from the company.
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