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  Nintendo Posts Six-Month Loss In Face Of Rising Yen And Falling Sales
by Simon Parkin [PC, Console/PC]
12 comments
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October 28, 2010
 
Nintendo Posts Six-Month Loss In Face Of Rising Yen And Falling Sales

Nintendo today posted a six-month loss of ¥2 billion ($24.7 million) for the period ended September 30, 2010, down from a ¥69.5 billion ($854.5 million) profit in the same timeframe in 2009.

It's the first time in seven years that Nintendo posted a first-half loss. The company expects annual profits to drop 60 percent year-on-year ¥90 billion ($1.1 billion) for the fiscal year ending March 2011, the lowest level in six years.

The losses were put down to the strength of the yen, falling hardware sales for the company's existing systems, and the announcement that the 3DS will launch in early 2011, missing this year's holiday period.

Nintendo's sales for the first half of its financial year were down 34 percent year-on-year to ¥363.2 billion ($4.48 billion).

This fall is due to lower demand for its Wii console, which garnered 4.97 million global sales for the period, compared to 5.75 million in the previous year, and likewise its DS handheld, which dropped from 11.7 million units last year to 6.69 million this year.

Nintendo's Super Mario Galaxy 2, released in North America and Japan in May this year, and in Europe in June, sold 5.1 million units through September, the company said.

Total worldwide sales of the Wii through September were 75.9 million units. Global sales of the Nintendo DS handheld line were 135.6 million units.

The release of its latest figures came after the close of Thursday trading on the Tokyo Stock Exchange. Nintendo shares closed down 0.7 percent.
 
   
 
Comments

Andrew Dice
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Not really that surprising; *everyone* in Japan who does any business overseas is hurting due to the yen right now. If the yen doesn't improve somewhat in the next six months the entire Japanese side of the industry is going to be in agony due to lost revenue compared to where the yen "usually" is (and thus where budgets usually stand).

Andrew Headley
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By "improve" you mean weaken. The Yen is strengthening too fast against their two largest export markets. They need the dollar/euro to gain strength or the Yen to weaken in order to solve this portion of the problem, which doesn't look very promising (at least from the US side). With the weak dollar, the US consumers hold their wallets a little tighter and that needs to change if they expect an improvement. And, like Todd said below missing the Holiday season isn't putting them in any better of a situation. I have no fear Nintendo will come out of these troubled times just fine.

gus one
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Blame Obama. The administration deliberately devalued the dollar so they could export the impact of the recession to other countries it trades with like Japan (charming). But then China does it back to the US by deliberately pegging the Yuan to the dollar when in fact it should by rights appreciate. Hence all the sabre rattling at the moment. If the US release another chunk of quantative easing the dollar will get walloped again and Japan will see the Yen go even higher.

Either way Japan is still screwed, zero growth for the last decade, an aging population and persistent deflation. Pity since I'd like to buy a Wii but I don't want to pay £150 for it.

Eric Geer
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Its good for Japan that the Yen is doing well..but overseas its terrible...like the US where the shrinking dollar isn't helping anyone.

Maurício Gomes
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Here in Brazil the dollar is plummeting too, the government here went batshit insane and buying dollars like there was no tomorrow, and still cannot prevent the price here from plummeting.

I actually like it, from the point that make the internal economy stronger, we /need/ lots of imported stuff, thus it makes everything cheaper internally, but the "elite" of the country here rely solely on exports, so they are not happy, and are doing their best to make the dollar rise again.


BRL was designed to be valued 1 USD. Currently one USD is 1.6 BRL, but in the past it reached 4 BRL... From the perspective of consumers, it not being 1 USD is bad, because lots of stuff is imported, and are thus valued 1.6 times than they should, but the people that export stuff, sold stuff for some years with values above 2.5 USD.

Todd Boyd
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Skipping over the holiday season with the 3DS was definitely a bad move. I guess I should be glad they didn't rush a product that isn't/wasn't ready (Fallout Vegas, anyone?)...

Dan Saundberg
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What happened there... did the whole QA team of Fallout Vegas get fired? Very strange that Bethesda let this game come out the way it did.

Eric Geer
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Agree. LOL Fallout NV--I've been playing the PS3 version--game froze on two separate sessions--hopefully patch will help a bit.

Maurício Gomes
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@Dan.

It is not strange at all, Bethesda do that in ALL their games...

Actually, the game engine is infamous for having some bugs that exist since Morrowind (seriously O.o), just take a look in the forums, sometimes you will see thread spamming of people complaining "Hey, X is bugged since Morrowind, when you will fix it?" or "Vats is bugged!" or "The game is crashy!" or every DLC launch: "Hey, I lost my save" or "Download is failing" or "I cannot connect to GFWL anymore!"

Dan Saundberg
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Yeah but usually not 200+ bugs, it's just allot buggier than usual... do they have a QA team? Me wonders...

Eric Geer
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I do give them props for creating such large worlds and games..that are extremely in depth.---I'm sure a lot of this won't show up the first time around. And they were most likely on a tight schedule and so they had to put some things off---priorities priorities---seems to be happening more often now with games---how many games come through that don't require a patch---even metroid-other m required a patch--nintendo never does that..but I really haven't run into too much---just some stutters and frozen screens--which is frustrating..but nothin I can't look past.

Maurício Gomes
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I bet that if someone put a thousand Navi (from Zelda, not from Avatar) as QA team, Bethesda games would not have a single bug. :D


none
 
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