Nintendo are struggling in the current economic climate and have reported their first annual loss in 30 years. Part of the reason is said to be due to the price cuts for the 3DS handheld system and Wii home console.
Ninteno said it hit the red with a net loss of ¥43.20 billion in the fiscal year ending March 31st. Last year they recorded a profit of ¥77.62 billion.
They recorded an operating loss of ¥37.32 billion with revenue dropping by 36% to ¥647.65 billion yen. Nintendo do not report on a quarterly basis.
This loss hits just as Nintendo look at the next generation of hardware. They have a lot riding on the success of the Wii U which is released later this year.
The market has changed in recent years, because while before it was a three way battle between Sony Corp, Microsoft and Nintendo the popularity of free and inexpensive games has taken the market in a new direction.
Nintendo had to cut the price of the 3DS by 40% in August and sales improved thanks to the release of Super Mario 3D Land and Mario Kart 7. They sold 13.53 million units in the last year and aim to sell 18.5 million in the coming year.
Kitguru says: Nintendo have raised concerns in previous months that Apple have diluted the market, with inexpensive ‘casual’ games which are widely available via the App Store.Nintendo report first annual loss in 30 years,