Alongside Satoru Iwata's pronouncement that the Wii U will be on sale by the holiday season this year, Nintendo has had to report some ignominious news about its financial situation. The company has reiterated its expectation that it'll generate a loss for the full 2011 fiscal year, now placing the number at ¥65 billion (about $835 million), and it has also had to revise down estimates for sales during the latter part of the period. Previous forecasts had placed sales of the 3DS at 16 million between April 2011 and March 2012, but now Nintendo expects to only sell 14 million. In total, the company has sold over 15 million of the dual-screen 3D portable console, of which 4.7 million have ended up in Japan, 5.5 million in the Americas, and the rest around the globe. The Wii, which has sold over 94 million units to date, also saw its expected annual sales revised down, from 12 million to a round 10 million. Looks like that holiday season can't come soon enough for Nintendo.
Nintendo to make a loss of $835 million in 2011, despite selling 15 million 3DS units



There are 48 Comments. Add yours.
Nintendo + android = win
They are on a burning platform named 3d
Posted on Jan 26, 2012 | 3:52 AM EST via mobile reply Recommend (4) Flag actions
You do realize that every company loses millions every time they release a new console, right? Sony spent, allegedly, 3 billion developing the Playstation 3.
Posted on Jan 26, 2012 | 7:21 AM EST reply Recommend (5) Flag actions
That has rarely been the case for Nintendo, who have always maintained a profit for their hardware lines. The price drop on the 3DS might be the first time they took a loss on hardware in order to move units.
Posted on Jan 26, 2012 | 8:11 AM EST reply Recommend Flag actions
There’s still a couple years worth of development costs for a company to absorb, Nintendo has traditionally sold their hardware at greater than the CoG (cost of goods) but that doesn’t make it “profitable” when it launches.
Posted on Jan 26, 2012 | 1:31 PM EST reply Recommend Flag actions
So you’re answer is that Nintendo should quit hardware and make games for people who don’t pay for them and it’s so easy to pirate it?
Posted on Jan 26, 2012 | 10:05 AM EST reply Recommend (3) Flag actions
What a ridiculous statement.
Posted on Jan 26, 2012 | 10:11 AM EST reply Recommend (1) Flag actions
It seems that large scale companies can’t be profitable these days without ecosystems. Which nintendo does not have.
I am sad that they did not go with “entertainment system” thing with the wii u, instead of just a game console.
Posted on Jan 26, 2012 | 4:16 AM EST reply Recommend Flag actions
Don’t forget about the effect of the strong yen
Posted on Jan 26, 2012 | 5:07 AM EST reply Recommend (1) Flag actions
I disagree. I’d say the main reason I bought Nintendo was because of their ecosystem, the exclusive games and clear market differentiation.
Posted on Jan 26, 2012 | 7:08 AM EST reply Recommend Flag actions
But they only have games. True, probably the best games any videogame company makes, but still just games.
I don’t own any game console at this moment, but if i were to buy one, even though i am a long time mario+zelda+doneky kong fan, Xbox360 is much more appealing with it’s multimedia prowess.
Posted on Jan 26, 2012 | 7:37 AM EST reply Recommend (1) Flag actions
If you want multimedia you want blu-ray. No? I have a ps3 and an HTPC with xbmc, covers all the bases
Posted on Jan 26, 2012 | 10:24 AM EST reply Recommend Flag actions
who needs blue ray on xbox when you can stream every movie. thats the only reason i got a xbox because i really dont see myself ever buying physical copies anymore. its also why netflix is so profitable.
Posted on Jan 26, 2012 | 11:43 AM EST reply Recommend Flag actions
They got comfortable, and now they lost 900mil.
Posted on Jan 26, 2012 | 4:36 AM EST reply Recommend Flag actions
That’s not true. They’re just great at doing two things: making great games and making the hardware to accomodate it.
Check back in a decade. All consoles will be dead. Either that or you won’t recognize them.
Posted on Jan 26, 2012 | 10:08 AM EST reply Recommend Flag actions
I sincerely hope they success with Wii U, we need innovative players to stay on the market and Nintendo is one of them.
Posted on Jan 26, 2012 | 4:47 AM EST reply Recommend (1) Flag actions
Agreed. The WiiMote was never something that captured my imagination, but it clearly resonated with a whole bunch of people and was the definition of innovative technology use. The gaming world needs Nintendo to remain strong.
Then again, let’s not forget Nintendo’s situation before the Wii, it wasn’t exactly setting the world on fire with N64 sales. There’s still plenty of opportunity, particularly when you consider that Microsoft and Sony won’t have new consoles for a long-ish time after the Wii U is out.
Posted on Jan 26, 2012 | 5:29 AM EST reply Recommend Flag actions
Smooth… you just unintentionally reinforced your own point by completely ignoring the GameCube!
Posted on Jan 26, 2012 | 7:38 AM EST reply Recommend Flag actions
Haha, damn. I did, didn’t I? :D
Posted on Jan 26, 2012 | 9:18 AM EST reply Recommend Flag actions
gamecube is awesome. I am forever upset at the world for not giving it its proper chance. Yeah it sucked at online, but it had one of the most comfortable controllers, wavebirds are sweet, cool design, etc. I was randomly on amazon and I just bought mario party 5 for cube,. woo!
Posted on Jan 26, 2012 | 10:27 AM EST reply Recommend Flag actions
That was Microsoft’s big start in gaming really. Remember the retail industry revolt at Nintendo’s pricing for the Gamecube? It was too low a price, they needed to make more money, etc. Then they couldn’t shift enough Xboxes at launch price, and Nintendo may have even brought the price down a little bit further – ‘oh what a great price point’. Yeuuch, Then Microsoft noticed and dropped its price too…
I miss the Gamecube (I still have mine, I mean in the industry), the Wii is not a suitable replacement.
Posted on Jan 26, 2012 | 2:41 PM EST reply Recommend Flag actions
Three years ago, the hype was still strong and some people said it was only a matter of time for Nintendo to steamroll over Microsoft and Sony.
But since Nintendo had only one winner on their hands and otherwise did everything the same way they’ve always been thing it, it was merely a matter of time for the next “corporate recession”.
Nintendo might fall back to a distant third in the future. Again.
Posted on Jan 26, 2012 | 5:06 AM EST reply Recommend (1) Flag actions
When was nintendo ever a distant THIRD?
Posted on Jan 26, 2012 | 7:39 AM EST reply Recommend (1) Flag actions
…Seriously? Try the sixth console generation:
> PlayStation 2 – 150 million
> Xbox – 24 million
> GameCube – 21.74 million
> Dreamcast - 10.6 million
There they are, right there in 3rd place. And boy, are they ever distant.
Posted on Jan 26, 2012 | 8:26 AM EST reply Recommend (2) Flag actions
So … once. And not at all distant by any definition. Gotcha.
Posted on Jan 26, 2012 | 10:12 AM EST reply Recommend Flag actions
naw, after all 129 million isn’t distant at all.
Posted on Jan 26, 2012 | 11:24 AM EST reply Recommend Flag actions
2 million isn’t all that distant.
Posted on Jan 26, 2012 | 12:55 PM EST reply Recommend Flag actions
It’s distant from 1st, and it’s 3rd place. Distant 3rd. Don’t be pedantic prick.
Posted on Jan 27, 2012 | 3:37 PM EST reply Recommend Flag actions
It’s distant from 1st, and it’s 3rd place. Distant 3rd. Don’t be pedantic prick.
Posted on Jan 27, 2012 | 3:37 PM EST reply Recommend Flag actions
> So … once
Yeah, once. “Again” means that he’s predicting that it will happen another time, the first time being the sixth console generation. Anything else in this extremely simple and accurate comment you need explained to you? Or is your Nintendo fanboyism so strong that it’s not even worth it?
Posted on Jan 27, 2012 | 3:38 PM EST reply Recommend Flag actions
By the one winner, you meant the Nintendo DS, right?
Posted on Jan 26, 2012 | 11:44 AM EST reply Recommend Flag actions
Maybe Nintendo should stop relying on Mario for most of their income. Herp.
Posted on Jan 26, 2012 | 5:44 AM EST reply Recommend Flag actions
If they dont , their loss will be greater .
Posted on Jan 26, 2012 | 7:34 AM EST reply Recommend Flag actions
How COULD Nintendo lose money at all? I mean, all their products ARE selling, its not like their hardware is sitting on shelves, and they make a profit on every unit sold, right? Its not like the PS3/Xbox 360 situation (until recently) which was a loss of XXX on every unit sold, to hopefully be made up from game sales.
I wouldnt buy any Nintendo hardware, I wish they had their IP available on iOS and Android, but surely enough people are buying the 3DS and Wii? How could they lose “a billion bucks”?
Posted on Jan 26, 2012 | 6:09 AM EST reply Recommend Flag actions
It’s easy . The Wii is being sold at cost last few years , it’s 6 years old .A 30% drop in game sales last year . 3DS didnt get expected sales numbers .
Posted on Jan 26, 2012 | 7:39 AM EST reply Recommend Flag actions
Source for the first info?
Posted on Jan 26, 2012 | 7:41 AM EST reply Recommend (1) Flag actions
But even then, the Wii is making profit, its not a loss on each unit sold like the other consoles were for year after year, the 3DS is pretty crap in my opinion, but its not like they are just sitting on shelves, they are selling, and so they dont quite have Apple/Samsung like success straight away, combined with a game sales decline, and THAT costs poor Nintendo ~ a billion bucks?
Posted on Jan 26, 2012 | 10:18 PM EST reply Recommend Flag actions
3DS lite to the rescue.
Posted on Jan 26, 2012 | 7:08 AM EST reply Recommend (1) Flag actions
iPod Touch is eating 3DS’ lunch. It would only take an Apple gamepad to send the Wii U into dire straits. My guess is that a lot of casual gamers that bought the Wii three years ago has moved on to the Apple ecosystem.
Posted on Jan 26, 2012 | 8:46 AM EST reply Recommend (1) Flag actions
I think that the very strong Yen is destroying any profits they may be making when the repatriate funds back to Japan, a lot of Japanese companies are suffering because of this. Good thing is is that there products are selling relatively well, including the 3DS kalimah.
Plus we keep bashing all these companies but we are still feeling the effects of the worst financial decline since the great depression. Only Apple seems to be immune from this.
Posted on Jan 26, 2012 | 9:19 AM EST reply Recommend (1) Flag actions
its not only ipod but all mobile gaming like android and windows phone.
Posted on Jan 26, 2012 | 11:46 AM EST reply Recommend Flag actions
correction: its not only iPod but all mobile gaming like iPhone.
:-) Ok, its more than fair to say iOS and Android gaming, Windows Phone? Yeaaah, not so much!
Posted on Jan 26, 2012 | 10:16 PM EST reply Recommend Flag actions
yeah but microsoft forsaw this happening thats why xbox live is on the phone and not a portable gaming system.
Posted on Jan 27, 2012 | 12:34 PM EST reply Recommend Flag actions
Is using the giant stacks of money from selling out of the Wii for three years straight to dry their tears an option?
Posted on Jan 26, 2012 | 9:22 AM EST reply Recommend Flag actions
haha maybe. They probably have pretty decent cash reserves!
Posted on Jan 26, 2012 | 9:23 AM EST reply Recommend Flag actions
I love Nintendo, and have ever since I was a little kid. I want them to stay strong, I wish they could figure out a way to get Nintendo content onto iOS and Android and still have a successful business model. I would LOVE playing Mario Kart X on my iPad. XD Hmmm… it’s been a while since I played those old games.
Posted on Jan 26, 2012 | 10:40 AM EST reply Recommend Flag actions
After playing tonnes of asphalt 6 and real racing on my ipad I would also love to see this. Gyro steering is so intuitive it’s crazy.
Posted on Jan 26, 2012 | 10:57 AM EST reply Recommend (1) Flag actions
An official Super Mario game would sell millions of copies evens if they sold it for $10. It wouldn’t eat into their current games and hardware because they aren’t selling these retro titles anymore. It may even add to their customer base by building an appetite for Nintendo’s current products a la Apple releasing iTunes for Windows hoping to entice them toward the Mac platform. Nintendo would make money in the short term selling the retro titles and may make money in the long term by adding to its customer base.
Posted on Jan 26, 2012 | 11:39 AM EST via mobile reply Recommend (1) Flag actions
but nintendo would then be losing money to apple buy having to give up 30% of their revenue
Posted on Jan 26, 2012 | 11:49 AM EST reply Recommend Flag actions
Something to say? Choose one of these options to log in.