Reuters is reporting that Nintendo is poised to post massive losses for the first half of this fiscal year that ended on September 30th. The company initially forecasted a 55 billion yen loss, but their new figure is now expected to check in at the 100 billion yen ($1.32 billion) mark. Nintendo will supposedly be making these losses official on Thursday of this week.
Hot on the heels of Nintendo’s massive success from the combined smash sales of the Nintendo Wii and the Nintendo DS, the company put out the handheld that’s not been doing them nearly the same level of justice. The Nintendo 3DS had actually performed so poorly at stores after launch that Nintendo elected to slash the system’s price by a large margin in order to reclaim some of their lost footing.
That price cut came in the early goings of this past August, less than two months before the first half of the fiscal year closed; so, it’s hard to say how the company will perform in light of the cut on the handheld. We do know, by looking at a few weeks of Japanese hardware sales data, that Nintendo is enjoying a nice boost in 3DS sales in its home nation.
Assume, then, that this big loss has been largely influenced by the pre-price cut 3DS and falling sales of the Wii. Nintendo’s home console seems to have reached the tipping point between being a sales rocket and a product that everyone already owns. The Wii obviously stopped selling well in recent years…it moved so fast at the onset that everyone who wanted the console went out and bought it.
It would be hard to suggest that Nintendo is operating unaware of these problems. The company has reacted in several ways that, hopefully, stand to right the ship; the aforementioned 3DS price cut and the upcoming Wii U both serve as ways in which Nintendo is attempting to pad their future.