Nintendo reports losses

Nintendo has projected a net loss for the first time in its publicly-owned history. Earlier today, Nintendo regrettably informed its investors that instead of the 15 billion yen profit predicted earlier for the fiscal half-year, the company expects to suffer a loss of 3.0 billion yen (around $27 million). Nintendo is currently 7 million yen into the red.

Nintendo blames much of the losses on the unexpected appreciation of the Japanese yen, citing roughly 40 billion yen in foreign exchange losses for the time span. Nintendo also disclosed it had originally planned to reduce the GameCube’s price earlier in the year, and expects the new price to vastly improve sales during the holiday season.

Despite the disappointing news, Nintendo remains confident in its business strategy and estimates a 60 billion yen profit for its full fiscal year ending in March—only five billion yen short of its previous goal.



If I may editorialize: Holy shit Nintendo, I hope you make those year-end goals, for video gaming\'s sake.

-Eik

Nintendo is very naive me thinks.No adverdising, not persuing enough developers and support.

So what this means is that they\'ll lose 3 billion yen in the first half.. and then make 60 billion (give or take a few) in profit for the year. Headlines like "Nintendo takes first loss ever" might be misleading to some..

Plus, you have to remember what Sony and Microsoft are projecting. Last I checked, both of them still won\'t profit nearly as much as Nintendo will by the end of this fiscal year. Ooo, the Big N\'s in the red! Scary!

Yea they\'ve just lost a bit of money this fiscal-half, they\'re not in debt or anything.

And actually, with the price cut and related advertising, plus with ads for Viewtiful Joe and Wrestlemania XIX circulating on tv, the mind share might be growing.

I expect Nintendo to move quickly into the black again, if they haven\'t already.

Still, we keep seeing bad signs for Nintendo, and maybe they\'re over-analyzed, but it\'s only because it\'s so scary to think of them going under.

Here\'s to the next Nintendo system... And to the next Mario Kart. ;]

-Eik

Originally posted by Blade
So what this means is that they\'ll lose 3 billion yen in the first half.. and then make 60 billion (give or take a few) in profit for the year. Headlines like "Nintendo takes first loss ever" might be misleading to some..

Plus, you have to remember what Sony and Microsoft are projecting. Last I checked, both of them still won\'t profit nearly as much as Nintendo will by the end of this fiscal year. Ooo, the Big N\'s in the red! Scary!

While I do agree that news like this is often misleading, you most definately can\'t compare it with Sony or Microsoft. Both are much more diversified than Nintendo that taps their profit from just one stream (in which they made a loss this first half).

Ooh ooh, go get \'em!



Nintendo GameCubeTM has become the hottest selling video game console in America since its price was reduced to $99.99 on Sept. 25. Sales data from the week ending Oct. 4 reported from major Nintendo retailers indicates that Nintendo GameCube is currently outselling Sony\'s PlayStation 2 by 20 percent, and Microsoft\'s Xbox by 145 percent.

Consequently, Nintendo now claims the two best- selling video game systems in the country. The Game Boy® Advance portable system continues to outsell each console, as it has done all year long.

-Eik

So a gamecube is now as much as a GameBoy Advance SP?