Nintendo has announced that it expects to lose 20-billion yen (a shade under $264-million) for its fiscal year ending March 2012. Software sales are down, hardware sales are down, and the Japanese yen continues to be one of the strongest currencies in the world, which is bad news for a company that’s dependent on exports and global sales. This will be the first lost since the company started releasing its financial results in 1981.
In some positive news, worldwide sales of the Nintendo 3DS portable console have hit 6.68-million units. Considering its rough start and the fact that many pundits called it a “doomed” system, the sales are impressive. Like I’ve said in the past, I expect 3DS sales to be strong in the long run.
The exchange rate issues will continue to plague Nintendo for some time to come. There’s not much the company can do to counter that factor…outside of relocating the entire company to China and Mexico. Hmmmmm…I’m going to put a pitch together. I think I can convince at least 40 percent of Nintendo of Japan that Cabo San Lucas is where they want to be.