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Nintendo expected to report gargantuan loss

Strong yen and slow 3DS sales to blame.

Nintendo will tomorrow report a gargantuan loss, according to a Japanese newspaper.

Nintendo will post a loss of about 100 billion yen (£820 million) for the first half ending 30th September 2011, the Nikkei business daily reported today (via Reuters).

That's a substantial increase on the 55 billion yen loss Nintendo forecast. Nikkei said it expects Nintendo to post a first half net loss greater than the 35 billion yen it projected. Shares dropped by 7.5 per cent following the news.

Nintendo has this year suffered a battering from an increasingly strong yen and slow Nintendo 3DS sales.

Earlier this year it announced a huge 3DS price cut, and boss Satoru Iwata slashed his own wage in half.

Nintendo will be hoping 3DS games such as Mario Kart 7 and Super Mario 3D Land, couple with the cheaper price of the console itself, will boost sales this Christmas.

And despite the losses, Nintendo expects to make a full-year operating profit of 35 billion yen (£287 million).

Nintendo will announce its second quarter report tomorrow.

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About the Author

Wesley Yin-Poole avatar

Wesley Yin-Poole

Deputy Editorial Director

Wesley is deputy editorial director of ReedPop. He likes news, interviews, and more news. He also likes Street Fighter more than anyone can get him to shut up about it.

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