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Nintendo Reports Losses And Lowers Projections

Despite having a successful 2011 holiday, Nintendo is still showing overall losses and is lowering sales projections for 2012.

Apparently, much of Nintendo's losses can be attributed the the poor exchange rate of the yen and the dollar. Nintendo is a Japanese company, but a large percentage of its sales come from overseas sales.

For the fiscal year ending in March 2012, Nintendo is projecting losses $837 million dollars, which is more than twice its original projections, which put the company at around $258 million in losses.

Where Nintendo originally projected 3DS sales to reach 16 million units for the same period, it has now scaled that back to 14 million units. Despite scaling back projections, Nintendo did say that the 3DS had a strong holiday and that, "With the regained momentum and a strong lineup of software on the way, prospects for the platform remain strong."

Even the system that people seem to refuse to stop buying are down. The Wii projections for the full 2012 year were at 12 million units, but Nintendo has dropped that down 10 million.

No projections on the Wii U just yet, but Nintendo did confirm that we will be seeing it this year.

 

[via Gamasutra]

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Comments
  • Come on Nintendo, keep on fighting!
    Also, am I the only one incredibly excited for the Wii U? I mean, the mere thought of an HD Mario or Zelda makes me nearly quiver with excitement. Hell, an HD remake of some of Nintendo's classics would also be greatly appreciated. (& Yes, two of those I fantasize about are Super Mario 64 & Ocarina of Time.)
  • They've got some money from me in the form of SS, a new 3DS with Mario Land...and an already paid off copy of REvelations. Not to mention the classic Mario's and Super Metroid off of the Virtual Console.
  • Things are bad for Nintendo. If they don't do everything right with the WII U they're finished :( But everything's going to be ok if the 3DS will have good games.
  • @Kyle Hilliard They confirmed we'll be seeing the system this year? Or projections on the system this year?
  • why don't you ask sony for help... oh wait. you f-ed that up. lol.
  • well that stinks.

  • In before Apple buys Nintendo.
  • did everybody forget the last 4 years? this company is swimming in revenue from the initial Wii launch and the months to follow. they never sold any at a loss. predicted losses and money in the bank are 2 different things.
  • Nintendo is not going anywhere. They have so much money in the bank it's absolutely ridiculous. Although I do think the Wii U is going to be a bust, the 3DS is going to keep them going strong.
  • If the Wii-U does indeed release this year, I'm betting that it will sell around 2-4 million unites, so long as they have a strong showing at E3 and have a decent software lineup.

  • O_O Anyone else surprised by this? I'm surprised because Nintendo's hardware is worth close to nothing. The Wii is cheap, and the 3DS is cheap (look it up, that screen isn't THAT high tech). As we can all see, the Japanese government has been trying to keep the Yen high for awhile now, with the bad result that the American dollar converts into a negative projection. Remember, the U.S. dollar has actually deflated since the beginning of the recession, making the U.S. dollar a little stronger, but obviously by this report, not by much. Also, do you guys think the WiiU will capture our mom's and dad's like the Wii did? I just don't see it. The WiiU is literally a tablet connected to your T.V. That's it. I wouldn't be surprised that in the next year or two we begin to see tablets have more functionality with Smart T.V's and in effect see more games through that. I highly doubt parents want to walk around with a huge screen in their hand around that house when they have their Ipad 2 (or 3, 4, 20).
  • Mod
    Not having studied business outside of Economics in Highschool, I'll never understand the reason behind guessing how much many will be earned in the future and when the "profit" falls short of the guess we split the difference and call it a loss. I don't see where they actually lost money. They just didn't make as much profit as they would have liked.

    At least that's how it looks in my uneducated eyes.
  • Nintendo is not going to die. They have loads of money stored up from the Wii and the DS. Plus, now that the 3DS is back on track, people are probably going to buy lots of 3DSs. Also, years ago, people were saying that Nintendo should just give up and be a third-party developer for Sony, just like now when people say that Nintendo should give up and be an app developer for Apple. So, based on past history and the looks of Nintendo now, I don't think they will die anytime soon.

  • I feel like this is a pretty big I told ya so moment
  • Nintendo needs to move past their 20 year titles if they want to push in to the hardcore market. The casual bubble is collapsing and you cannot count on a cartoony colorful Mario game, even in HD resolution to sell this console.
  • Not surprising to me. A great holiday season can't really make up for a years worth of misteps. However, a strong holiday season should give Nintendo some momentum heading into this year and beyond, and I expect those numbers to rise again.

  • I just want super smash bros.

  • when you don't have more than 2?  main games for your console and a tiny list of games at all for your handheld of course your not gonna make that much money in a year when compared...  3d will sell more with more games... wii u who knows they just need to make sure they have a big name nintendo games on it faster than the 3ds did  and i think it should do ok...  pricing could hurt tho but yeah

  • Wow, looks like the holiday push still wasn't enough. Hopefully 2012 will put them back on their feet. Let's hope the Wii U does the trick.
  • Not surprising. The 3DS might have sold well once the price was dropped, but if you're selling it below a profit, you're not helping yourself.
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