Nintendo posts first-ever annual loss

Selling 3DS systems at a loss contributes to the Mario factory posting $458 million operating shortfall for the year; Nintendo predicts return to profit next year.

Nintendo today confirmed what it had been predicting for some time: the fiscal year ending March 31, 2012, ended with the firm's first-ever annual operating loss. A 36 percent drop in hardware and software sales year-on-year meant a 36 percent drop in revenue, leading the firm to report a ¥37.3 billion ($458 million) loss for the financial year, on ¥648 billion ($7.99 billion) worth of sales.

Mario and friends hope to return to profit next year.

Both losses and sales were smaller than Nintendo had predicted. The firm had predicted full-year sales of ¥660 billion ($8.14 billion) and an operating loss of ¥45 billion ($555 million). The firm said the loss was due to 3DS not fully recovering "from the sales slump early in the fiscal year," despite an aggressive price cut rolled out worldwide from August of last year. That price cut means Nintendo is currently selling 3DS consoles at a loss, but it expects to begin making a profit in 3DS sales again from September of this year.

Nintendo expects to return to profit in its next fiscal year. It is expecting sales to rebound to ¥820 billion and to record a profit of ¥35 billion. It predicts these to average out to $10 million and $440 million respectively over the course of the year. This return to profit will be driven by the release of the Wii U across the world at the end of this calendar year and a number of key software releases.

The firm highlighted the planned releases of New Super Mario Bros 2 for the 3DS in August, Animal Crossing on the 3DS "this fall," and a new Brain Training title "this summer" as reasons for cheer in the coming fiscal year. The firm also outlined plans to expand its Nintendo Network programme that will allow Wii U and 3DS owners to play online, and will be used to provide DLC for its games. The firm also confirmed it was looking into allowing full-game downloads via the Nintendo Network in the future, but it did not offer a timescale for this.

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Discussion

238 comments
Justinps2hero
Justinps2hero

Nintendo will be just fine. Making quality products for years, this loss is accountable, & judging by how good the 3ds is, this blip will be forgotten in the next financial year.

I've spent more money on Sony over the last decade, but I can see that Nintendo is still top dog in the market place.

jackwaterga
jackwaterga

they didn't loss anything in the gamecube era¿?

imm_84
imm_84

Nintendo should Stop naming there new innovations with Names that have been used for years ... since family ( who buy games for their children ) dont know the difference.  Most parents think that they already got his child an equivalent product  DS  3DS .. whats the difference ... oh 3d ... wont pay 200$ for just 3d ..   and now they are doing it again with Wii U !?  ...  did you forget the impact sales of new name with new innovation  Wii ... DS ... Gameboy ... Nintendo  ....  Big life changes .. dont stick to one name ...  a major thing dont loose the grown ups who were raised playing nintendo ... by not offering HD of online communications properly ..  if you dont know how .. let apple help out .. get a 3rd party to make all the computer tech ( like xbox live )    Good luck nintendo ... I really wish you keep making success ... 

-Nintendude-
-Nintendude-

This must be only because of Wii U is in production (right?) and that's an expensive thing to do before release. Nintendo is always selling everything for profit by using less expensive parts and a bit more aged hardware instead of using new just released parts and selling for loss. (Like the other 2 do.)

rushiosan
rushiosan

Give people good games, then they'll give you money. That's obvious.

 

What remarkable game did Nintendo release since Skyward Sword last year? They're losing money for obvious reasons. Nobody wants a "new" Mario game, we've seen it all. We're not on the 90's anymore. 3DS was so promising bro, what happened?

wiidsduelpack
wiidsduelpack

Nintendo is losing money because of R&D for Wii U as well as the manufacturing of the system. The system has been confirmed for the holiday of this year. Stop thinking we are stupid Nintendo

im2cool123
im2cool123

did the nintendo bank actually lose money or is it just a case of not making as much as last year?

mario113
mario113

@69ing chipmunks If that is the case what about pokemon snap that was original and they haven't made a sequeal yet or maybe Drill Dozer, magical starsign, pushmo, and dillions rolling western just to name a few

69ingChimpmunks
69ingChimpmunks

This is news? The only time Nintendo actually makes sales is when they re-re-release a Mario, Zelda, or Pokemon game. I say re-re-release because they haven't had a truely original idea for any of these games in YEARS.

beny_pimpster
beny_pimpster

lost of selling a system? aint it somewhere on gamespot before posted the total cost of making the 3ds was only 100 dollars??

Wormkid_64
Wormkid_64

I'm not surprised,the 3DS had that slump,and the Wii has been slowing down for some time now. But no biggie. With the 3DS selling like it is now and the release of a new console,Nintendo will be back to putting money in the bank.

Devil_wings00
Devil_wings00

Well it really isn't suprising. The only exciting thing last year about nintendo was a new zelda game and a new gimmick based handheld. I hope nintendo does well with the wii u but many people won't be sucked in by the gimmick this time. I bought a wii and I really only break it out when the one or two titles that ARE NOT shovel ware get released in any given year post 2007. I only brought it out to play zelda in all of 2011. Unless the wii U is dirt cheap I can't see the thing flying off the shelves like the wii did. I know I'm all gimmick controllered out and the wii u is going to have to affordable and special for me to pick up.

hitman047m4
hitman047m4

@RitsukoEX I do not think the Wii is dead... in game support, unfortunately it is getting to that point due to the lack of 3rd party support. Technologically, it could use a lift up when it comes to processing power and graphics, but that is for the more shallow gamers who only care about the pretty visuals and no gameplay whatsoever, because there are games on the Wii that did not needed the horsepower or the HD tag to make them awesome. In fact, if gamers and game developers were not so shallow when it comes to video games, I think the Wii would have had more 3rd party support and more titles coming from other regions during its 5+ years of existence and beyond. This has to be the 5th+ article I read in 2 days related to Nintendo status, news, etc, and there is a lot of negativity coming from some part of the gaming community when it comes to express their opinion. I guess some people/gamers do not believe in diversity and choice. I do not understand this campaign of alienation that some gamers have against Nintendo... but I guess some people like to put more wood into the fire and overreact for anything.

dawnofhero
dawnofhero

Please, stop being a bunch of gamer nazis and just have fun with what you like to play...

mario113
mario113

[This message was deleted at the request of the original poster]

Lamesy
Lamesy

Kazawazawhat? mario113, hardcore gamers despise Kinect and Move just as much as Wii. Possibly more, for invading and casualizing their systems.

mario113
mario113

@maxstar360 I know they always try new ideas but whenever they show them people always hate on them then when sony and microsoft have the same idea all of a sudden it is magnificant stupid hipocrites

MaxStar360
MaxStar360

Today, I watched a Youtube video where some idiot was saying nothing else except "Wii U is dead because it sucks!". Really, that was the whole video! It made me realize something. Nintendo will ALWAYS have haters, sadly. They could make the best console and/or handheld the world has ever seen and it *still* would not matter to most of these childish haters that pick on Nintendo either because they simply like a different company more or because they think it fun to hate Nintendo. Am I wrong?

sknight175216
sknight175216

You have to lose money to make money. They'll be fine.

Lamesy
Lamesy

@NoelXYuel Posted Apr 27, 2012 4:18 am GMT You mean they didn't have a annual loss during the GameCube era? I really feel like that was their weakest console war. True, but Ninty had GBA (and at some point DS) to rely on churning out straight profit. Right now they're dealing with their console's weak close out AND their handheld's first ever flubbed launch. 3DS has already recovered to the point where its future is strong, but right now they're still giving away money on every system to atone for the launch greed. Once the portable crutch is reinstated, they'll turn a profit almost regardless of Wii U's performance.

nintendoboy16
nintendoboy16

@RisukoEX You call me out for defending the Wii (while acknowledgeing it's fading life, but know games are still coming out) and Nintendo and call me a fanboy because of it? On your profile, you say you're a 360 fangirl, but you call me out as a Nintendo fanboy. How does that make any sense? :?

RitsukoEX
RitsukoEX

@nintendoboy16 from your name I know. you're a Nintendo fanboy. but that reply was.. the weakest reply I ever read. The Wii train is NOW DEAD!

fightingfish18
fightingfish18

Hmm. Not sure what to make of this. I'm not gonna be so bold as to claim that Nintendo is going away, as they most likely have more money stashed than they know what to do with. But this doesn't bode well, and with the recent Wii-U news about certain games not getting supported, it is starting to look like they could possibly have a Sega Dreamcast-esque situation on their hands - great system, great games, but not quite up to the competition. Not saying that's how it'll be, as I haven't played a Wii-U yet.

franzito
franzito

Nothing to cry over it. I'm sure they have some billions saved for future games, marketing and such.

mario-nin-freak
mario-nin-freak

This is just a result of the 3DS launch. They were kind enough to lose money on the 3DS so that people would buy the console :P But hey, atleast they were willing to correct a mistake and take a sacrifice to do it!

oasis112
oasis112

the 3DS needs good games to come they cant expect to make money from a console that has very little games and release an under average game at best a few times a year

comb5
comb5

@spoonybard-hahs $1200 is very modest for a computer, hardly epeen status. I just brought it up because you said I will get bored with my Wii due to the game selection. My expectations of the Wii aren't much. I missed a whole generation of Nintendo games and after I beat those I'll be done with it. Then it's back to my PC for gaming.

spoonybard-hahs
spoonybard-hahs

@comb5 What the hell does your $1200 rig have to do with it? We're talking about quantity of quality games available for a console, not your epeen.

Metal_Gear_LR
Metal_Gear_LR

its no surprise nintendo fell behind during the closing of the current gen consuls, it didnt have what everyone wants, good online play, better graphics, and DLC...hopefully the wii U will provide this equally as the ps3 or xbox...sadly I think by the time wii u comes out to play they may fall behind on what the other systems have in their playing hand. I worry for you nintendo....I dont think the company will die but i can see them falling behind, as for me I'll always be playing my mario, zelda, and metroid games and you can take that to the bank

comb5
comb5

@spoonybard-hahs I have a $1200 dollar gaming PC as well. I bought my Wii solely for the purpose of playing Nintendo games.

spoonybard-hahs
spoonybard-hahs

@nintendoboy16 What happened to Sega is an isolated case. So far. The difference between Sega and Nintendo is that Nintendo will not change how they make games. The fact that they can throw out updated versions of twenty year old games and still make money proves to them that they do not have to change a thing in the software department. And, incidentally, Sega being out of the hardware market isn't proof that their failings are a result of that. The Dreamcast was a decent machine, it was just too late. Even if Sega was still producing hardware there isn't anything to say that their software would have been as lackluster as it is now.

warhawk-geeby
warhawk-geeby

Unfortunately I don't think Nintendo are going to bounce back as well as they may hope... I'm not bashing them, because I genuinely love the company to bits. But they've focused on Mario and Zelda for far far far too long. The Wii did well on launch because it was something completely new, the WiiU however is just a console with a tablet as a controller. It looked promising at first, but even Samsung's latest smartphone makes the tech look dated now - and it hasn't even been released :? I don't know.. Nintendo need to change their game plan if they want to make a real go of it outside of Japan. If they don't though I think the next gen might be their last..

FatmanAB
FatmanAB

@guitardeth3 aha srry i just read it :) i thing it also because the strong yen make the 3ds less profitable in thier HQ in japan thanks (deletes my comment)

guitardeth3
guitardeth3

@FatmanAB I explained this before...

FatmanAB
FatmanAB

[This message was deleted at the request of the original poster]

nintendoboy16
nintendoboy16

@RitsukoEX -Xenoblade Chronicles recently released in the US -Kirby's 20th anniversary -Pandora's Tower released in Europe -X-Seed will be alongside Nintendo in publishing The Last Story -Europe is getting a remake of Fatal Frame 2/Project Zero 2 The Wii dead? Not yet, and it's going out with a bang before the Wii U releases.

nintendoboy16
nintendoboy16

@z50macdaddy It's seen in almost every Nintendo article, good or bad.

z50macdaddy
z50macdaddy

wow alot of negativity in the comments

coop36
coop36

They arent going to die from losing a couple hundred million. I also think people are going to be surprised at how well received the WiiU will be. Even though Im sure Pachter absolutely loves this kindof news for some reason.

shinspikes
shinspikes

Playstation all stars battle royale was just debut on gametrailers.com And yes it is a complete smash bros rip off. Whether thats a bad thing or good, can't say yet.

megakick
megakick

Wii U might make it worse :/

im2cool123
im2cool123

this is not good, but also proof that nintendo is not going anywhere. that is very good. nintendo is reporting a loss for the first time in decades and then look at the ps3 which sold at a loss from sale number 1 and so on for a long time, a very long time. i do not know why people say nintendo is backing out. if you look at how successful each of the big 3 gaming companies are, then it is obvious nintendo is the only one who knows how to play the game, not just better, but actually well

jhpeter
jhpeter

Nintendo can still be saved, just release a 3DS slim with a bigger screen, 2 analogs, a battery cover...

moviequest14
moviequest14

@Nilbogssa : Yes , forced to add on a control peripheral that has been entirely optional for every game it's been made for? Funny how a select group of people that *can* experience only slight eye-strain from time to time suddenly becomes ''almost everyone'' , yes , I suppose we should bash all video games now too because the light/images on the screen can give *some* people seizures right? Oh yeah , bloody blasphemy to cut the price on something so it will sell better , it's totally like that didn't help double the sales of almost every system right? Also 100% coincidence that sales picked up at the same time the major promised first party titles right? Had Nintendo waited until now once these 1st party titles were out the 3ds might not be doing as well as it is now , but it would still be doing much better.The psp sales were rather small (compared to other handhelds like the ds) as will the Vita (probably equal psp sales) as nothing near massive because for the most part people won't pay a hell of a lot for ANY system. Please explain with your almighty wisdom and lol'ing if the price cut was the reason for the success why the 3ds was the fastest selling system of ALL TIME hitting 5 million before ANY other system , even ps2 or ps3 or wii or any? I thought the only reason people bought it was because it was cheap , there were 5 million right there that paid full $250 for it.

RitsukoEX
RitsukoEX

Finally! that Wii train is DEAD!

DrKill09
DrKill09

@nintendoboy16 Hey, I never thought I'd see Sonic on Nintendo consoles, but it happened. And Sega were a GOOD company. Their only problem was marketing. Nintendo haven't made a good console since the SNES. It's their time to go.

ale1ale3
ale1ale3

 @jackwaterga ha ha ha, you made me laugh a lot friend, not they didn't... it was because the played EXTREMELY safe back then ;-)

nintendoboy16
nintendoboy16

 @rushiosan What games did Operation Rainfall beg for? Why did Xenoblade finally release in America? Why is X-Seed handling The Last Story's release in America?

 

Also, you're aware Skyward Sword released in the holiday season, right? What else could they have released then?

wiidsduelpack
wiidsduelpack

 @mario113  @maxstar360 Sony and Microsoft don't have the selling power of Nintendo. Stop being a fanboy. ONLY FANBOYS RANT. Sales are praised for a company, not vague statements