Nintendo reverses profit forecasts - MCV

Nintendo reverses profit forecasts

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Having previously predicted that it would post a small profit for the year ending March 31st, Nintendo has now said it expects to make a loss following a poor 2011.

An operating loss of 45,000m is the new forecasts, down from a 1,000m profit. Nintendo made an operating income of 171,076m in its last full financial year.

If correct it will be Nintendo's first full-year loss since it started reported earnings in the pre-NES era.

It has also lowered its net sales forecast from 790,000m to 660,000m. Again, this is massively down on the FY 2011 number of 1,014,345m.

The earnings forecast has been modified to reflect the trends of stronger than expected Yen appreciation and the sales unit forecasts revised based on the current sales performance,” the company stated.

For the nine months ending December 31st sales reached 556,166m, a 31.2 per cent drop year-on-year.

Nintendo has also reported an operating loss of 16,408m for the period. In the same timeframe last year it enjoyed a profit of 158,795m. Net losses reached 48,351m which, again, is down on last year's 49,557 profit.

All this, of course, is despite the launch of Nintendo's latest hardware the 3DS.

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