Nintendo Reports Net Loss for the First Time in 7 Years

Editor’s note: Before you start spouting things about the Wii’s success and that Kinect and Move will never beat it, allow me to reinstate that I’m only presenting my own opinion. No one says you need to agree with it, but if you don’t, please don’t be rude about it in the comments.

It’s unthinkable, but sadly true. Nintendo has just released the fiscal results for the six-month period from March to the end of September, and it’s not good. They’ve declared a net loss of 2 billion yen, or almost 25 million US dollars. As a loss, it’s negligible compared to some of the reports coming from their rivals, Sony and Microsoft, but the real shock sets in when you realize that they made 69.5 billion yen (about $860 million USD) in pure profit during the same time period last year.

Nintendo Reports Net Loss for the First Time in Seven Years

Nintendo ran into the red these past six months.

The reason for this loss is most likely the lagging sales of Nintendo’s systems: with the Nintendo 3DS slated for release early next year, most prospective DS buyers are holding off on their purchase until the glassesless 3D handheld comes out; sales of the Wii are also down 45% from last year. THINQ.co.uk believes this is because “pretty much everyone on the planet who wants a Wii has already got one.” Not just that, but Microsoft and Sony’s new motion control systems, while definitely reeking of the catch-up vibe, are also undeniably getting a fair share of attention.

Nintendo is by no means in trouble only because of this single loss – the Wii has already been a runaway success and in the almost four years since its launch back in ’06, has surpassed even the wildest expectations. The 3DS is also sure to steal the show come February and March, and will probably be a steady source of income for a while, but where does this leave Nintendo’s home console business?

As I said in my last post, I think the Wii has reached the twilight of its lifetime, the point at which a console gets a barrage of blindingly awesome exclusive games before riding off into the sunset. Admittedly, the Wii isn’t quite done for yet as it still holds the title for the cheapest way to get into motion-controlled gaming; with the competition, not only are the HD-capable consoles pricier, but their motion control systems are sold separately for quite a hefty price, too, while the Wii is motion-ready right out of the box. But these days, more and more people are willing to pony up the extra cash for an HD experience that suits their big-screen TVs.

This is by no means confirmation of anything, but it seems that Nintendo’s iron grip on the industry is finally starting to slip a bit, and therefore, I think it’s extremely likely we’ll at least be hearing about the Wii’s successor soon. A 2011 release is probably a bit too soon, but I still believe that we may be treated to the console’s reveal at the coming E3, with the launch following at some point in 2012.

Source: THINQ.co.uk

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  1. I think the reason they are losing sales is because both the DS and the Wii are coming to the ends of their lives, and naturally most people have a wii and DS so less willl be bought anyway. Hopefully 3DS and the wii successor will be arriving soon

  2. videodrome

    thats profit dip and nothing more, wii christmas and 3DS 2011 1st Q will be huge theres always dips and profits,the DS folowed by wii grew over that 7 years that 7 years of growth is now at sateration,,,the 3DS is the start of the next phase the next 7 years so to speak ,followed by the wii replacment, its the end of DS lifetime as 3DS kicks in A LOSS IS WEN A COMPANY LOOSES MONEY AND OPERATES IN THE RED that has never happened in 120 years of nintendo existence they shall report AS THEY HAVE EVERY YEAR FOR THE PAST 20 YEARS the highest net profits in gaming black is profit red is loss ,nintendo has 120 years of black not red…

  3. wiiboy101

    all 3 just reported there 1/4 console sales= wii 4.97 million/ps3 3.5million/x360 2.8 million, thr truth is wii maintains its lead sales,and maintains a ever widening gap vs x360/ps3 the wii decline reports are proven worthless wii continues to grow away from x360/ps3 regardless of there desperate acts to increase sales a cple of months ndp for usa proves nothing