14 DAY TRIAL // Video game hardware maker and publisher Nintendo has announced that it posted a net loss of 48.3 billion Yen (624.2 million dollars and about 476 million Euro) for the nine-month period which ended on December 31, 2011, and has lowered its estimates for the entirety of the current fiscal year, which is set to end on March 31.
During the same period of 2010, the company had managed to deliver a profit of 49.5 billion Yen (638.4 million dollars and 487.2 million Euro), but during 2011 the company has faced with both lower than expected sales of the new Nintendo 3DS handheld, especially during its first few months on the market, and lower demand for the ageing Wii home console.
Net sales have also slowed down significantly when compared to 2010 and Nintendo has said that for the entire year it expects to post a loss of 65 billion Yen (840.1 million dollars and 641 million Euro).
Nintendo has also been hit by the price cuts for both the Wii and the 3DS and by the relative strength of the Yen against other currencies.
During the nine-month period, the Wii has sold 8.92 million units, a steep decline when compared to the 13.72 managed during the same period of 2010, while the normal DS has seen a decline from 15.7 million to just 4.64.
The Japanese company has also been forced to cut down sales projections for the new 3DS, which is now expected to move 14 million units for the current fiscal year, down 2 million from the number that was set when the handheld was launched.
When Nintendo announced the worse than expected results, analyst firm Wedbush Morgan has announced that it has cut its guidance for the company and says that it could face a tough 2012, mainly because the PlayStation Vita will provide tough competition for the 3DS and the prospects of the Wii U are not yet clear.