It’s Official: Nintendo Posts First Ever Annual Loss

The signs have been evident for some time. Diminished Wii Sales, their first ever quarterly earnings loss, not to mention the disappointing performance of 3DS. No wonder Nintendo lowered expectations last year, predicting they’d be posting their first ever net loss for fiscal year 2011. About those lowered expectations? Yeah, that was the right decision. Today, it became official: Nintendo has posted their first ever annual loss.

The wobbling giant reported $534.6 million losses on the $8 billion in revenue it pulled in in 2011. To put that in perspective, in 2010 they pulled in $960.5 million in profits on earnings of $12.6 billion. EEOUCH. There is a silver lining, however: Nintendo’s original forecast was much bleaker, estimating $804.3 million losses. Unfortunately, they also predicted $8.2 billion in sales. So you lose some, you lose some slightly less humiliatingly.

After the glory of the previous decade, Nintendo’s financial setbacks come as a mild surprise. The Wii remains the best selling console of the current generation with 95.85 million units sold, and the DS is the second best selling gaming device of all time, with 151.52 million total sales. However, Wii’s success was in capturing the casual gaming market, and that has changed considerably in the era of smartphones. No doubt Nintendo plans to reverse this with the upcoming Wii U, which so far looks like Nintendo going after core gamers again. We’ll find out at E3 whether or not it’s anything to shout about.

Via the LA Times.

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3 Comments on It’s Official: Nintendo Posts First Ever Annual Loss

Freedonnadd

On April 27, 2012 at 4:57 am

I dunno mate… I left Nintendo (or rather, it left me), when all this casual gamer business came along. Not that I disaprove of this, no no no let the kids play too, but then exchange one gamer base for the other? And then came MS and Sony with their kinect and PS move, and what did Nintendo do? They upped the ante and came forth with the new and exciting stuff they’re well known for? Noooo, they scoffed and called “shame on you” on their new tecnology. But there is the problem with the casual gamer base, they’re pretty much atracted to new stuff like moths to flame. There is no diehard fan among the casual base, and when the flock left, Nintendo comes limping back trying to win the hearts of us core gamers with a console that, again, has no intention on competing with the other newgen consoles?

as I said, I dunno mate…

howzdis

On April 28, 2012 at 11:16 pm

Couldnt agree more with the above post well put mate.

JMBEC

On June 14, 2012 at 3:42 pm

They have NO shame. Dumbing down and ruining franchises that SOLD WELL ALREADY just to appeal to casual gamers and earn 10 tons of cash instead of 7. Greedy bastards.

Wii U will be for core gamers? Yeeeeeah, I totally believe it… The only old fans Nintendo keeps now are the diehard fanboys. Yeah, the kind of fanboy that adores Skyward Sword just because it’s called Zelda and everyone gives it a 10.

Disappear, Nintendo. Get out. Stop ruining videogames.