Andre Yoskowitz
29 Jul 2010 12:25
Nintendo has posted their first quarterly loss since 2007 this week, citing falling DS and Wii sales alongside a stronger yen causing overseas earnings value to plummet.
For the three months ended June 30th, Nintendo saw a net loss of 25.2 billion yen ($289 million USD), compared to a profit of 42.3 billion yen ($485.6 million USD) in the same period last year.
Nintendo noted it took a one-time currency-related loss of 70.5 billion yen ($800 million USD) for the quarter.
"The foreign-currency fluctuation exposure and sluggish consumer demand in the U.S. add up to a rather bleak outlook for the company," said Kiyoshi Ishigane, a senior strategist at Mitsubishi UFJ Asset Management.
That "sluggish consumer demand" is a direct response to falling demand for the Wii and DS consoles, which have long been strong sellers, here in the U.S. and abroad. June saw DS sales plummet 33 percent in the U.S. last month alone. Overall, first quarter sales of the DS fell 47 percent, with software falling 23 percent.
Nintendo is expected to release their Nintendo 3DS handheld in the next 9 months, offering a device that allows gamers to watch 3D images and play 3D games without the need for special glasses.