Tomorrow is going to be a long day for
Nintendo, as a newspaper out of Japan is reporting the video game
giant is preparing to announce a recurring loss of nearly $1.32
billion for the first half of its 2011 fiscal year, which ended September 30th. If true, this
means Nintendo's first half losses will come in at nearly twice
its predicted $723.4 million total. In non-economist lingo, Nintendo
will have some 'splaning to do.
According to the foreign report from
the overseas newspaper Nikkei (translated by Reuters), the loss is
being attributed to foreign exchange losses, and an overall global sales
slump. Since Nikkei's story went to print, Nintendo stocks had dropped in
value by 7.5%.
Signs of trouble date back to July when
Nintendo announced it would be slashing the 3DS's priceby nearly 32%,
following lower-than-anticipated launch sales and a general lack of
excitement for the handheld --or more specifically-- it's lackluster
library. Combined with increased competition
from the mobile app market, a dearth of must-have games for the Wii,
and a lukewarm response to the Wii U announcement, it's safe to say
this has not been a banner year for The Big N.
There is, however, hope. Nintendo's 3DS
price drop is already equating to some gains, and we're starting to see gift worthy games like Kirby's Return to Dream Land pass our desks. Even
more promising is the arrival of both Super Mario 3D Land, The Legend Zelda:
Skyward Sword, Mario Kart 7, and new DSi XL bundles just in time for the
holidays. True, 2011 may have started slow, but we're predicting
Nintendo will have some better news to report in the new year.
Oct 26, 2011