Nintendo Reports More Losses

Despite Nintendo’s recovery with the 3DS, the company continues to struggle after another report of quarterly losses; Nintendo now expects an annual loss of 45 billion yen.

“We had higher expectations for the year-end season, but failed to meet them,” Nintendo President Satoru Iwata told reporters in Osaka.

According to analysts the losses were attributed to a strong yen, the unprecedented price cut of the 3DS and the mobile smartphone and tablet market.

“To say that (the days of console) are over is likely an overstatement,” said Shigeo Sugawara, a senior investment manager at Sompo Japan Nipponkoa Asset Management. “But social network and Internet delivered games are growing and structurally changing the future of the industry, which is a strong wind against Nintendo.”

Beset on all fronts, can Nintendo weather the storm of 2012 with its momentum on 3DS sales and the upcoming Wii U?

Source: Reuters