Nintendo posts rare quarterly loss as sales sink over 25%

After nearly four years of profits, the Mario Factory posts a rare $288.3 million loss; Wii sales near 74 million, DS tops 132 million; Super Mario Galaxy 2 goes quadruple platinum.

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Ever since the Wii launched in November 2006, Nintendo has posted quarterly profit after quarterly profit.

No longer.

For the three months ending June 30, 2010, the company reported a rare loss of 25.2 billion yen ($288.3 million), versus a profit of 42.3 billion yen ($484.8 million) the year prior. Net revenues were 188.6 billion yen ($2.16 billion), a 25.6 percent decrease from the year before.

Super Mario Galaxy 2's 4 million in sales was a bright spot in Nintendo's dismal April-June quarter.

In a supplemental statement, Nintendo said that the reason for the decrease was falling sales of DS hardware and DS and Wii software. The strengthening yen was also a major factor, since it decreased the value of the Kyoto, Japan-based game giant's prodigious overseas income, which accounts for 86.5 percent of its overall sales. As a result, the company estimated its foreign exchange losses were 70.5 billion yen ($808 million), eating up most of its profits and pushing its ledgers into the red.

Contrary to many analyst reports, the company said global sales of its Wii hardware actually increased during the three-month period to 3.04 million, with 28.17 million Wii games purchased. The console has now sold 73.97 million units worldwide, far ahead of its rivals the PlayStation 3 and Xbox 360, with some 165 million Wii games sold as of June 30, 2010.

The DS has now eclipsed 132 million units of hardware sold, with a whopping 740.93 million DS games sold internationally as of the end of June. However, Nintendo said "fewer new software titles contributed to driving hardware sales," so just 3.15 million members of the DS suite of portables were sold April-June period, along with 22.42 million games.

Nintendo also offered updates on some of its latest software releases. Super Mario Galaxy 2, which launched in North America on May 23, has now sold over 4.09 million units. The game was enthusiastically embraced by review outlets, including GameSpot, which gave the game a perfect score of 10.

Discussion

219 comments
kirtar34
kirtar34

I'm not a businessman in any sense, so the numbers don't mean that much to me. I'd imagine if anything is causing Nintendo to have a loss, it'd be from people salivating at the 3DS and saving their pennies. And in regards to Nintendo not catering to adult fans: okay, so they don't have any games where the lead character tears off someone's head with his bear hands and I haven't seen any of their games cover the entire screen with gore, but that doesn't mean Mario and Zelda aren't for adults. Doesn't the requirement for bloodshed seem a little... juvenile? I'm a little bored with the standard storyline "you've been hurt or offended to some random degree; seek revenge on those bastards by blowing their heads off." Really, I just want to enjoy a game that reminds me of my roots back in the early 90's. Enter Nintendo. They haven't forgotten where they've come from and what made gaming great to begin with. If anything, they're staying true to themselves. If you want to rip some guys throat out with as much realism as possible, I have no comment. Just don't start bashing Nintendo for it. 'Cuz deep down, we all have some fond childhood memory from the SNES.

MasterJosh47
MasterJosh47

see that is the reason i dont buy a wii nintendo doesnt have any good games for adults thats why i got a ds for rated E games like pokemon mario cart and zelda and a xbox 360 for grown up games cant wait for the 3ds though

super600
super600

I think nintendo's developing something secret or their using money to develop the 3DS. I hope the 3DS and the secret thing their developing destroys these haters hatred. Nintendo at least tries to make games fun unlike Activision. Nintendo also doesn't backstab their workers when they make a deal with them.

itsTolkien_time
itsTolkien_time

Tylendal ought to be correct. With SMG2 turning 4 million and an expected level of Wii sales it is unlikely such a significant loss could be reported without Nintendo placing a lot of investment into the development of something.

Flint247
Flint247

I don't get why people hate Nintendo for re-releasing the same franchises. If people love them, why in the world would you stop making them? Especially if you are making a LOT of money for them? If Nintendo suddenly stopped making Mario, Zelda, Star Fox, etc games, people would throw a fit and you know it. It's only when companies continue a franchise that's been rehashed many times with no drastic change at all that makes things repetitive and annoying. But Nintendo knows how to keep their franchises fresh and enjoyable. But, let the haters hate and stress themselves out, the rest of us will be enjoying Nintendo's success. :D

kavadias1981
kavadias1981

Regarding the comments moaning about Ninty releasing the same franchised games over again; think about it from a business standpoint. They sell in their millions everytime. They are financially successful, popular and receive very positive reviews across the board. Why shouldn't they continue to milk it? Do you think Capcom would keep releasing Streetfighter games if they weren't hugely popular? The same goes for Square with Final Fantasy? Koei with Dynasty Warriors? Activision with CoD? If it sells then hell yeah you milk the fudge out of it until it bites the bullet. It is called good business.

Ganados0
Ganados0

Move and Kinect are mere peripherals doomed to failure while Wii and DS feature unique interfaces as standard. PS3 and 360 gamers only have sequels to games they just got to look forward to while Nintendo have invested in making Metroid Other M and Zelda Skyward Sword unique games. Nintendo's in it's own league, Sony and Microsoft who dont like second and third place will testify this too -- especially Sony who quote: "really have no competition this gen and therefore win."

Tylendal
Tylendal

Reading over some of the comments on this article remind me why I stopped posting on the forums. Some people just have no idea how business works. Personally, my thoughts, reading this, are that Nintendo is obviously spending a lot of money on developing something.

Flint247
Flint247

Oh well, haters will be haters... Good thing, Nintendo doesn't listen to them. :D

chimpmeister
chimpmeister

@zskrabs24 Couldn't agree more. Nintendo has aging outdated hardware, on both the handheld market and the console market, and they just keep rehashing the same old junk (Mario, Zelda, Metroid, etc.). Nothing new, nothing original, nothing adult oriented, just a bunch of gimmicks (DS revised like 5 times with useless 2nd screen, terribly designed Wii console with low-resolution and retarded motion controls, etc.). RIP Nintendo, your time is finally coming to an end . . . you can only milk the market so much.

Flint247
Flint247

@zskrabs24 "I can't stand it to see people say that Nintendo's E3 was amazing when absolutely ZERO games caught my interest." We have an opinion, that's why. If no game caught your attention, that's fine. I haven't found many PS3 games interesting, yet, I don't flip out or stress over people who like games I don't care for. That's why we all have different tastes. No one is the same. I disagree with most of your paragraph.

64-bit
64-bit

same period for other competition is even more losses. as simple as that.

Serious
Serious

I do believe that the introduction of PS Move and to a lesser extent the Kinect have hurt Nintendo's Wii sales.These two items have been revealed since 2009 E3. Many potential buyers are waiting to see which console to get. Another item that has hurt them is their own 3DS.Why get a DSi now when the 3DS is coming out in less than a year. A friend of mine was going to get a DSi this summer but now decided to wait.

monson21502
monson21502

@leach112, the wii is fun for the first few months. but once you see that you can sit down and bowl/pitch by making a litle arm jester and get the same results as if you stood up made the real life acts. it really takes the fun out of it imo. this will be why kinect wins the motion wars. sony`s move wil suffer the same thing and will be forgotten by its buyers in a few months. with kinect every game or match will be new and fresh as you will use your whole body. i think japan will go nuts for this. dance central will be number one on these charts when it launches. you can bet the house on it...

zskrabs24
zskrabs24

None of the games that any nintendo lover say on here change my opinion of the system. I do not really classify any wii game to be in the "hardcore gaming" realm. i am an adult. i want to play adult oriented games. Mario is not adult oriented. Zelda is barely adult oriented. the action is stylized and cartoony. Punch-out is too cartoonish and immature. Maybe 3 games in total bring adult oriented gameplay to the wii and they are more than likely multi platform. I can't stand it to see people say that Nintendo's E3 was amazing when absolutely ZERO games caught my interest. Maybe Goldeneye, but i've out grown PS2 level graphics. I spent plenty of time in the generation already, why would i want to go back when the 360 and ps3 bring amazing graphics to life on even crappy games nowadays. and now with the prospect of 3D gaming, i see no reason to take a generational leap BACKWARDS to play games that would be a million times better without the hardware limitations that the wii brings. i know this post is completely off topic from this article but so is everyone elses comment so i feel like i am in the clear. I have great respect for nintendo. my first system was a SNES and i love that system, however, as i have grown older, nintendo hasn't. they have stopped catering to the generation of people that were with them from the beginning and now they have forgotten about us older gamers and now moved on to the younger generation. i feel betrayed and forgotten by nintendo.

Takeno456
Takeno456

Wow so this batch of comments is almost the same as the ones about the rise in Sony sales article. I swear every time a sales report gets put on this site people go crazy. Like I said in the other article the way people react to financial reports on this site is strangely similar to Wall Street workers.

gabsponge
gabsponge

@killip seriously, I couldn't agree more.

kavadias1981
kavadias1981

Nothing lasts forever but Iwata is a clever CEO who knows exactly how to adapt the business to keep Nintendo successful. Returning to the hardcore gamer is exactly what Ninty needed to do and we have the 3DS and a great lineup of Wii and DS games to look forward to (in my opinion of course). I look forward to feeding Nintendo some more of my money.

gamermanps2
gamermanps2

I knew nintendo were dying but I didn't know it would start this soon. Move and kinect aren't even out yet.

killip
killip

@ FooFighter92 @ GamerofMario1 Im not saying Nintendo aren't original -they above all games company's come out with original ideas -the problem is that there is never any games for Nintendo's consoles. You can sit there and tell me all the Nintendo made games all you want -and i'll agree with you, because Nintendo know how to make a great game, but waiting for a new Nintendo game to come out once every 7 month is a joke, and not worth buying the console for it. There's also the problem that when a 3rd party developer does come out with a great game like: Okami, No more heroes and Monster Hunter, they don't sell enough and ends up being they won't risk making other games like it again, so it goes back to the 'safe zone' of genericism. And overall, yes most games just aren't original. It's just one generic hero coming out after the next, or they are using game protagonist from when games first started. And they end up doing the same stuff they always did. And im not saying every game, im saying the majority.

KrazzyDJ
KrazzyDJ

The quarter in which the 3DS releases should see Nintendo post a big enough profit !!!

amaan4ever
amaan4ever

when the 3DS releases M$ and Sony will be hiding behind a rock

jeroux06
jeroux06

Either Mario Galaxy 2 or Red Dead Redemption will win Game of the Year!

GamerofMario1
GamerofMario1

@killip: It is not my fault a lot of publishers like to make shovelware. And here are some good multi-platform games: Resident Evil 4: Wii Edition The Beatles: Rock Band Tiger Woods PGA Tour 10 Ghostbusters the Video Game Prince of Persia: The Forgotten Sands But you are right about most other multi-platform games. The ones I listed were the rare outlier. But if games aren't as original as they used to be, explain SMG, Kirby's Epic Yarn, and Cooking Mama.

GamerofMario1
GamerofMario1

@burrito_tester: Nintendo doesn't make Cooking Mama or Zhu Zhu Pets games. Majesco makes Cooking Mama, and Zhu Zhu Pets was made by Activision. Keep the facts straight.

leach112
leach112

Quite telling that 74million Wiis have been sold but only 165 million games. So basically the average Wii owner has only 2 games for the console. Me thinks things will only get worse for Nintendo.

RealWreckless
RealWreckless

[This message was deleted at the request of a moderator or administrator]

Fusionmix
Fusionmix

132 million DS units? GG, Nintendo. GG. I may loath your casual-catering tendencies with the passion of a thousand burning SNESes, but cannot ignore your market-plumbing genius. It says something when your two competitors have to get off their hardcore thrones and start churning out lookalike copies of Wiimotes in between hosting hilariously embarrassing E3 summits.

nini200
nini200

@taxonomic I think your Thumbs Down says everything for me. K, now go play your StarCraft 2. Have a Good One. :)

Senor_Kami
Senor_Kami

This isn't as bad as it seems if it really was mostly fluctuations in currency that led to it.

zzamaro
zzamaro

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

Phil-teh-Pirate
Phil-teh-Pirate

O MA LAWD!! Quick! Re-release Wii Sports as Mario Tennis, Mario Bowling, Mario Golf, Mario Paint, Mario Party, Mario Baseball and Mario Strikers... We need instant mega bucks!!

FooFighter92
FooFighter92

@killip First, I'm not a fanboy to make that clear, but I will have to disagree with you on this one. You talk about how important originality is... well if there is a company that has worried about been original, it's no other that Nintendo... With the Wii and the DS (lite, 3DS, XL or whatever) and all that. And for the record, yes, I do think originality is importat; but I also think is overestimated...

ybother10
ybother10

no biggee they got the 3ds coming and will probaly make new systems

killip
killip

@GamerofMario1 Nobody likes a fanboy, and you clearly are. And yes it is bad when 80% of the games on the Wii shelf is absolute trash. You have a list of games that you have given me (all of which are great and i have owned or played at one point in time), but you fail to mention all the multi-format games that come out: 9 times out of 10 it is a crappy PS2 port with really bad motion controls; it's not a console -it's a joke. And if you want to talk about top 5 best games of all-time-none of this generations games should be on it, because games just don't go for originality like they used too; it's just a recycled formula, repeat.

XanderZane
XanderZane

I think the DS has surpassed the PS2 in hardware sales. If not, it will before this year is over. It was expected that Wii sales would drop as some point. Over 73million people own one. What % of the planet is that? What's going to happen when this baby drops to $129? There is still a lot of great games out there for the Wii. I'm definitely getting 007 Goldeneye, Kirby Epic Yarn and Donkey Kong Country Returns. It's amazing, that even with the shrinkage in sales Nintendo still continues to outsell the PS3 and XBox 360.

burrito_tester
burrito_tester

Keep your hopes up that nintendo goes bankrupt! All nintendo does is make stupid games like cooking mama or ZU ZU pets the video game ( thats a real game on DS) whats next? Sponsor Elmo?

da_chub
da_chub

im up to 144 stars, it is ridiculus how awesome and hard SMG2 is. Best Nintendo game in years.

GamerofMario1
GamerofMario1

@killip: Ok, so it is bad that Nintendo found a good marketing scheme and want to get new gamers into the market? Video games are selling much more because of Nintendo. Don't be a hater. ;) Alright, if that wasn't enough, than here's some more great games: Warioware: Smooth Moves World of Goo Okami No More Heroes Super Paper Mario Sin and Punishment: Star Successor New Super Mario Bros. Wii Little King's Story Punch-Out!! and many more. :) And plus, look at http://www.gamerankings.com/browse.html. In the top 5 best games of all time, Wii has #2 and #3. Xbox doesn't. PS3 has #4.

killip
killip

@kuda001 Completely agree with you on that one. There next console will be epic.

kuda001
kuda001

This is to be expected that their strong sales in software and hardware would eventually decline especially hardware. However Nintendo are always thinking about the future and hopefully the 3DS and perhaps an improved Wii can turn things around but i don't think they will reach the same sale and profit levels from previous periods. I'm hoping all the money earned in this generation of consoles/handhelds and the lessons learnt can help develop superior successors.

killip
killip

[This message was deleted at the request of a moderator or administrator]

grasshopper6
grasshopper6

no big deal they made a lot of money prev. year and they got 3DS coming

Emerald_Warrior
Emerald_Warrior

It's not like it's a 90% drop like poor Capcom. Everyone is hurting in the economy right now. I don't think we should worry about Nintendo yet. But I wish they would focus on real games more and less on casual and party games.

vaejas
vaejas

@EternalYoshi: "If the DS isn't doing so well as it was before, then doesn't that mean the Osbourne effect is finally catching up to them? If so, they can't create anymore re-releases of the DS." If by re-release you mean any new hardware between the DSi LL and the 3DS, then yes I don't imagine they were going to shoehorn anything in before the 3DS is released. Then 99% of DS/i owners will be behind the curve and eager to buy another upgrade, which probably means hardware shortages for at least a year. People will like a faster better, backwards compatible DS. And if they don't like naked-eye 3D even after seeing it themselves, there's that slider to essentially disable it. So there should be almost no barrier to upgrading.

Trainz2006_fan
Trainz2006_fan

Have they ever considered that perhaps people are getting a little bit sick of the same games that come out including the annoying shovelware titles?

Dman360
Dman360

if they aint goin' bankrupt, i don't see what the big hoopla is