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Nintendo announces a huge financial loss

Has to compete with smartphones and tablets
Thu Jan 26 2012, 16:00

JAPANESE GAMING LEGEND Nintendo has reported a financial loss of 48.4bn yen.

The sorry looking figure relates to the last nine months of last year - its financial year will finish at the end of March. It's almost opposite to the 49.6bn yen profit it enjoyed for the same period in 2010.

Nintendo has lowered its earnings forecast to a loss of 65bn yen for the fiscal year. This is more than three times its previous prediction of a 20bn yen loss.

Nintendo spokesman Yasuhiro Minagawa said, "Sales of the 3DS were strong in Japan, but Christmas shopping got to a late start overall in the US and Europe. But we are upbeat about hardware and software sales for next fiscal year."

Nintendo launched its glasses free 3DS handheld console last year but suffered from various problems including complaints about it making users ill. The 3DS has gone through a number of price cuts and by the end of March the company expects to have sold 14 million units instead of the 16 million it projected earlier.

In general the firm is not only up against rival console makers such as Sony and Microsoft but also the makers of smartphones and tablets. The must have devices are a primary source of gaming for casual players thanks to decent hardware and cheap apps.

Demand for the Wii console has somewhat dried up recently with the Xbox 360 and Playstation 3 becoming more popular choices. However, the company will be placing its hopes on its next generation console, the Nintendo Wii U. µ

 

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