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Report: Nintendo to post $1.32 billion in losses for first half of 2011

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

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18 comments

  • GameManiac - October 27, 2011 9:48 a.m.

    Just wait for the holiday season. Nintendo will get back on the train, where it belongs.
  • ClusterShart - October 26, 2011 3:06 p.m.

    The headline you guys chose is misleading, it doesn't mean that Nintendo is actually losing money, but rather the money that they are receiving is worth less because of the absolutely horrible state that the US dollar is in right now.
  • LeSieg - October 26, 2011 2:57 p.m.

    That's a lot of money. However, I'm sure Nintendo isn't going to collapse because of one financial quarter...right?
  • codystovall - October 26, 2011 1:52 p.m.

    Are we just going to ignore the massive profit of ds and(poop adjective) wii for the past what...5..almost 6 years. Kinda wish they were hit a bit harder.....to really send home the message. http://www.youtube.com/watch?v=FwrgWDJw-3I
  • shawksta - October 26, 2011 12:47 p.m.

    Meh, not a big deal really, This always happens to everyone, and The Holidays are coming which will be huge for Nintendo especially whats coming out. If you recall,last year they had a loss almost like this, and guess what happened after that? They earned TRIPLE the amount they lost with Mario Galaxy 2 ALONE, with that in mind, Super Mario 3D Land, Skyward Sword and Mario Kart 7, and the bundles will be MORE then enough. Lol, trolls/Haters using this as an excuse to bash nintendo, especially the first comment, Nothing of what your saying even comes close to the reason of the loss, go troll somewhere else.
  • TheZigMan - October 26, 2011 3:08 p.m.

    Yeh because a loss of 25 million dollars is so close to 1 billion dollars. Get Marios dick out of your mouth
  • shawksta - November 2, 2011 1:49 a.m.

    Thanks for the Insult, Im by no means a fanboy. This IS bad, and Nintendo will learn from their Mistakes, unlike most companies they come out straight to people and tell them they screw up. My Main basis is that Nintendo's been in deeper crap and they always get back on track. Nearly every article about something bad happening to nintendo will always get fanboy comments about bashing them and stripping them of being Game Manufacturers when they have the most skill, its pissing me off as they are by far the strongest Company. Hopefully, they'll get all the scrawnies back with the Wii U
  • TheZigMan - November 2, 2011 12:42 p.m.

    actually, from a business standpoint, they aren't the strongest company. In terms of resources, both Microsoft and Sony heavily beat them, as they are two of the biggest companies in the world. And also in terms of sustainability, their products are no longer relevant, and they have not diversified their game lineup in a long time. When was the last time they released a brand new AAA never seen before game? The truth is that Nintendo will either go bankrupt, of pull an IBM and become a small company if they don't get their sh-t together
  • shawksta - November 2, 2011 8:38 p.m.

    In terms, yes, Sony and Microsoft are bigger and most is because of their heavy use of 3rd Parties to Back them up, Nintendo can survive without any help but they NEED the amount of 3rd Parties they get. As all, they do need to get their sh-t together and they are with their step forward with Online. There's something called Elite Beat Agents(2006, with Sony's newest series Uncharted on 2007), and Sin and Punishment, they have quite allot of series "Never seen before" but people ignorantly ignore it. Kid Icarus Uprising is technically something new as the Original is nothing compared to this one, and their planning to bring a samurai styled game on the 3DS.
  • TheZigMan - November 2, 2011 11:06 p.m.

    I dunno if you've ever taken economics before, but basically the amount of revenue a company now holds is meaningless, because a significant portion of that income is needed to run the company. A loss for a year is terrible, and can ultimately lead to the end of Nintendo. Admittedly half of the loss is due to the earthquake, but the stock market doesn't care about natural disasters. It would have been smarter to push up the launch of the Wii U, as well as launch the console with a full set of AAA titles.
  • shawksta - November 2, 2011 11:51 p.m.

    Yes i have Taken economics, and yes thats true, Nintendo's last statement is that their being cautious with the Wii U because they know this. Enough Argueing,and lets make up. We both agree that Nintendo needs to get their sh-t together and work hard on the Wii U's launch, the 3DS's Poor launch strucked them badly and taught them a lesson, its crucial, so far, they are getting Much better 3rd Party support for the 3DS and Wii U for what we know. The 3DS DID intentionally have a AAA launch but they were delayed because their still being worked on(better delayed then rushed) but it was THEIR own fault for releasing it early, otherwise they had a plan. With their pre-cautions now, the Wii U's "Real revision by E3 2012" they could turn it around for them and make the Wii U launch perfectly.
  • TheZigMan - November 3, 2011 2:11 a.m.

    For sure. I'm not a huge fan of Nintendo, but I respect them for their impact on the industry.
  • Redeater - October 26, 2011 11:56 a.m.

    Nintendo needs to learn from this. I guarantee that moms are not going to buy the Wii U. I love Nintendo but fads don't last. It is time to cater to the real fans.
  • WillisTron - October 26, 2011 11:39 a.m.

    It'd kill me to see Nintendo go under, they are my childhood. I have faith in them though :P
  • Mezolitik - October 26, 2011 11:35 a.m.

    Maybe it's because everything made by Nintendo must have last-gen graphics, be a recycled premise, have a gimmick, and/or offer fifty peripherals at launch. On the plus side, I'm looking forward to the Wii water jug and spatula attachments.
  • shawksta - October 26, 2011 1:03 p.m.

    Your failing, non of which your saying even adds to their loss, you just wanna talk against them with no reletivness.
  • ChrisCultista - October 26, 2011 8:22 p.m.

    No shawksta. Nintendo's new stereotype is being last-gen recycling. But for the first 4-5 years we were ok with it because they also tried new stuff, now it is pure unadulterated recycling and poor attempts to bring back the hardcore crowd they spurred, but that isn't going to work because the gameplay on all of the games listed in the article is from is also reused. And people are just plain tired of the waggle bullsh*t. And im sure the next Mario game will sell well, but not because it has any originality or concepts or anything, it will sell because 'Mario' is on the cover.
  • shawksta - November 2, 2011 1:55 a.m.

    "Last-Gen recyling" You guys never realize what your saying, the 3DS surpassed PSP, and Wii Surpassed GC and PS2, whats current is that 360/PS3/PSvita are more powerfull, but somehow you morons seems to gather that as "Last Gen" Nintendo's Rehasing, yeah, Mario and Zelda has been around for 25-GOD DAMN YEARS, dont you think that by now they would be DEAD? Their not, and you know why? Because only THEY can innovate them and keep alive for so godamn long. Mario Kart 7 is up until now since SNES, COD has been here for 1 gen and a half and yet MW3 is the 8th, you do the math. Nintendo's First Party is Huge and as you havnt noticed their reborning their old ones into new ones. Pointless ranting over something nintendo's been over is uselss, all the crap they've been given doesnt result because they do a fantastic job at keeping series alive without Selling out. Hopefully you bafoons realize this and stop saying the same crap for more than 15 goddamn years.

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