Nintendo Records First-Ever Full Year Loss in 2011

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Nintendo Records First-Ever Full Year Loss in 2011

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Plummeting sales have resulted in a $531 million annual loss for Nintendo.

The 2011 fiscal year was not a good one for Nintendo. The company reported sales of 647 billion [$7.9 billion] in its year-end financial report, a 36.2 percent drop over the previous year's mark of 1.01 trillion [$12.5 billion], which was itself a 29.3 percent slide from FY2009. Nintendo did manage to avoid a full-year loss in 2010, however, scraping by with 77.1 billion [$952 million] in net income, but could not dodge the bullet this time around. The company ended the year with a 43.2 billion [$533 million] loss, the first full-year loss in the company's history.

The Nintendo 3DS was a relatively bright light in the darkness, ringing up sales of 13.5 million units worldwide, including more than 5 million in Japan alone, which the company said "is the fastest record of all dedicated game platforms." Unfortunately, while Super Mario 3D Land and Mario Kart 7 recorded strong sales, the company suffered from a slower-than-expected start in holiday season sales, which kept the company from achieving the expected bounce-back from the sales slump in the early part of the year. The strong yen continued to hurt Nintendo as well, costing the company 27.7 billion [$342 million] in exchange losses.

Nintendo remains optimistic, however, saying that it expects to begin turning a per-unit profit on the 3DS, which it is currently selling below cost, by the middle of the 2012 fiscal year. It also expects new releases in the Mario, Brain Age and Animal Crossing franchises to perform well, and of course hopes are high for the upcoming Wii U console. The company predicts net sales of 820 billion [$10.1 billion] and a net income of 20 billion [$247 million] for FY2012. That's a far cry from the days when Nintendo ruled the world with a iron fist, but it's a start.

Source: Nintendo

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So THIS is why Movie Bob is so upset!

Sad news. Hopefully they can put on a mindset as if they're the underdog.

Very unfortunate for Nintendo. Still, they aren't the only ones hurting, or even the ones hurting the most of the Big 3. But yeah, a loss is always bad. Hopefully the WiiU is successful, considering that so far it's the only one that has my interest.

Nintendo projected this months ago and it started an avalanche of "Nintendo is doomed" articles from "experts" talking about how Nintendo should scrap 3DS and Wii U and sell 1 dollar smartphone apps.

Now that the loss (though less than projected) has actually been posted, the next wave of "Nintendoom" nonsense is already overtaking the web.

Every company has bad years. I'm not surprised. They didn't have a lot to offer last year. The 3DS which suffered the majority of the year from an under developed game library. Also, with the anticipation of the WiiU, I'm quite sure Wii isn't moving at all. I would be surprised if this trend went another year. But, as they say, hope for the best, prepare for the worst.

This is much worse than I first thought it was.

From

http://www.nintendo.co.jp/ir/pdf/2012/120426e.pdf

Cash as of 31st of March 2011 = $10 billion

Cash as of 31st of March 2012 = $5.6 billion

nearly 50% of Nintendo's cash reserves gone in 1 YEAR.

Kumagawa Misogi:
This is much worse than I first thought it was.

From

http://www.nintendo.co.jp/ir/pdf/2012/120426e.pdf

Cash as of 31st of March 2011 = $10 billion

Cash as of 31st of March 2012 = $5.6 billion

nearly 50% of Nintendo's cash reserves gone in 1 YEAR.

Yea, I bet this will probably lead to some drastic restructuring if they want to remain solvent.

I grew up with Nintendo, and I gotta say, they just don't make em like they used to.

Maybe they should make some decent fucking games for the Western side then.

And everyone complaining on Yahtzee's review of Kid Icarus: Uprising get all quiet suddenly.

Kumagawa Misogi:
This is much worse than I first thought it was.

From

http://www.nintendo.co.jp/ir/pdf/2012/120426e.pdf

Cash as of 31st of March 2011 = $10 billion

Cash as of 31st of March 2012 = $5.6 billion

nearly 50% of Nintendo's cash reserves gone in 1 YEAR.

I thought this was in regards to their EARNINGS rather than their actual cash on hand.

CardinalPiggles:
Maybe they should make some decent fucking games for the Western side then.

QFT. My thoughts exactly.

Go figure the soccer moms and nursing home crowd grew bored of the Wii while the 3DS library was a whole load of stuff we've already played. Maybe Nintendo needs to scrap the gimmicks and start making games for gamers again

thomaskattus:

Kumagawa Misogi:
This is much worse than I first thought it was.

From

http://www.nintendo.co.jp/ir/pdf/2012/120426e.pdf

Cash as of 31st of March 2011 = $10 billion

Cash as of 31st of March 2012 = $5.6 billion

nearly 50% of Nintendo's cash reserves gone in 1 YEAR.

Yea, I bet this will probably lead to some drastic restructuring if they want to remain solvent.

How the shit did they spend 5 billion dollars?

Is someone buying people so they can hunt them in the forest or something? That's a lot of money.

SuperTrainStationH:
Nintendo projected this months ago and it started an avalanche of "Nintendo is doomed" articles from "experts" talking about how Nintendo should scrap 3DS and Wii U and sell 1 dollar smartphone apps.

Now that the loss (though less than projected) has actually been posted, the next wave of "Nintendoom" nonsense is already overtaking the web.

If they started making 1 dollar apps I might fly to Japan and do something terrible.

Nintendo is fine, I need my Pokemon fix, I just wish they'd be more serious with their IPs.

I'm hankering for another SNES-N64 Era in terms of games.

Say what you will about the N64, but that leap in Mario 64 compared to all titles before it was astounding. So many new ideas and so many things done right on the first try...it was obscene.

Maybe if Nintnedo had actually done anything this pasy year except stagnate then this wouldn't be a problem. Yes i know they still make a few decent games here and there but is a Kid Icarus game and a slightly phoned in Zelda game really going to get kick things back into gear? Nintendo has been crusing on their past glories more and more as this generation has progressed. Meanwhile the gaming landscape changes around them and they are powerless to do anything about it.

If you take away the massive loyaty factor Nintendo inspires and just look at its actions of the past 5 years or so do you really see a company at the cutting edge of gaming? No. You see a company that got REALLY lucky and that now is getting rapidly passed by.

**Meanwhile on the Wii**

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Nintendos slow march into the history books.

I grew up on nintendo. But they have made some dumb moves in recent times and it makes me wonder if the Wii U is gonna get them out of the hole. I'm an accounting major and yes the depletion in cash is worrying. You see cash is the lifeblood of a company. It doesn't matter if they are worth $1million or $10 billion a serious depletion in cash flow like that will cause them to get in major financial trouble and my only hope is that they don't get bought out. My mate had a theory that microsoft or sony would buy them within 5 years and I really really hope that they prove him wrong.

Xanthious:
Go figure the soccer moms and nursing home crowd grew bored of the Wii while the 3DS library was a whole load of stuff we've already played. Maybe Nintendo needs to scrap the gimmicks and start making games for gamers again

Exactly! Been saying for years that the casual crowd has no loyalty. Nintendo underestimated the value of loyalty and sold out to the "I don't wanna use a right analog thingy" crowd. Well, those people moved on to other non Nintendo games and all the people who spent years waiting for a normal control scheme? We're playing the competition systems.

Microsoft should take notes too, that Kinect friendly dashboard may eventually alienate gamers who prefer controllers.

*shrugs* they're still doing better then a lot of company's so they'll be fine.

As much as I love Nintendo for what they've done in the past, I have to say they had this coming. It's absolutely pathetic.

I don't see things getting any better for the Wii U. I think it'll follow a similar fate as the Wii, a good start with system sellers like Smash Bros and Mario, then a another 3 or four years of slow death. I have no faith in their business strategy changing for the better anytime soon. If they do end up coming back strong, I'll be glad to say I was wrong.

If Nintendo dies, I'll be the saddest I have ever been when a company disappears. Not because they have been good recently, mind you, but for what they were. As they are now, I almost hope they do die. It's nearly as soul-crushing as watching the zombie that is Interplay thrash around in its death-throws.

lynnfire:
I grew up with Nintendo, and I gotta say, they just don't make em like they used to.

But good lord do they keep trying. And that is a huge part of the problem.

Cashing in on nostalgia can only last so long.

Good. And not in the hateful sense, or in the 'Do it my way!' sense. In the sense that Nintendo, like every big company, needed a shot in the arm.

I've seen Nintendo over the course of my life rise and fall. A lot. The one thing the company is damn good at, though, is rising to the challenge when they take a haymaker to the face. This is probably gonna hurt them, and result in some cuts, some changes. That's good. Because companies NEED that to stay competitive. Microsoft and Sony won't be lazing around; both felt the sting of being shuffled into a distant second behind the motion-control monolith. If Nintendo wants to avoid being shuffled to the back of the line yet again, they need something to put the fear of god into them, and this might do it.

Mind you, if their corporate culture has changed too much since the heady days of yore, instead of rebound they might become even more isolated and insular... in which case, expect a year or two of the most insane rehashing of older properties you have ever seen in your life, followed by a buy-out unless they manage to get at least a couple AMAZING gems in the mix.

CardinalPiggles:
Maybe they should make some decent fucking games for the Western side then.

YES
cmon Nintendo release Fire Emblem for fucks sake
the other ones have sold...

DVS BSTrD:
So THIS is why Movie Bob is so upset!

Well, that and people care about things he doesn't care about.

lol why didn't they try to hedge those foreign exchange losses? With all those sales they could afford someone who understands how to use forward purchase contracts on cash balances.

My first thought was: earnings management! That they washed deadwood assets off their books through their costs, and accrued semi-bogus expenses that reverse next year, so that next year will look super awesomesauce! Then I read the line about sales. And you only fake that by under-recording receivables. And who does that?

It saddens me, I wish Nintendo would stop making so many kiddy games, and gimmicky consoles, and get back in the game.

Sad to hear, but Nintendo will keep standing, at least for now.

Ouch. Maybe this'll help Nintendo realize that it takes more than early massive hardware sales to keep things going. After everyone buys your console, you gotta give them games to play on it.

Still, at least they're not doing as bad as Sony. Those poor guys are tanking in nearly every category but videogames.

I love Nintendo, and I grew up on them, but as soon as I saw that they're expecting fucking Brain Age to save their sales...I...just I...

Dear Nintendo,
Please stop squashing my hopes and dreams and go back to making great innovative games, please.
Love,
Mizzy

Nintendo Wii: no games.

Nintendo DSi: slowed to an agonized crawl.

Nintendo 3DS: no games.

Gee, who would have thought Nintendo would be doing so poorly. Heads up, Nintendo: you actually have to continue to release content for your platforms if you want people to keep giving you money.

you know what this means, guys? Another OOT re-release! What doesn't have OOT on it? They'll port it there.

OH! PC version.

Not to say much, but it was kinda bound to happen.

The Wii has had the problem of excessive shovelware on it instead of some decent games. It's also the problem of bad 3rd party support, seeing how the Wii had a good idea with Red Steel & Red Steel 2 (gunplay + sword fighting), but they've never really capitalized on what people would buy. It's kinda bad when you can look in a game store and overlook bunches of games, not because of lack of interest or funds, but because of some mind-boggling bad crap.

Hopefully Nintendo responds accordingly and realizes you can't just rely on the casual crowd; you need more than that if you dare to stay afloat these days. You can't just use gimmicks which do show some promise but not to the degree we'd like and expect it to keep selling; you have to integrate them PROPERLY. You can't just rely on the initial hit; you have to keep giving something to come back to and some new bait to get the fish outta the water. You can't keep letting excessive crap flood your market; you have to put some quality control out there.

I hope they bounce back from this one and really make a good impression this year tho.

Nintendo has no gam....es?
Animal crossing, Kid Icarus, Luigi's mansion 2, Mario kart 7, Super Mario 3D land. And thats only on there handheld.
Not to mention the Wii U which we can assume is coming out this year or next and if the rumors are right it will have PIKMIN 3!!! And an HD mario game.
Oh and there still making games for the wii. They've released Xenoblades for the American audience which will certainly appreciate that, and they released Skyward sword for the wii to. It might not seem like there pushing the wii to hard but they have another console and another in the oven.
Nintendo reached out to the Hard core fans becuase they knew they couldn't beat Microsoft and Sony or at least didn't want to play that game. Instead of being hurt by that you can aknowladge that fact that Nintendo was trying to gain new coustomers. There probabally the only AAA company that is still freindly to those who've stucked with them. When the 3D's got a price cut they actually gave free stuff to those who bought before the cut. Did they have to do that? Nope. They did it cause nintendo cares.
Look I just want people to get that Nintendo isn't going anywhere and that just becuase there 3rd parties suck, most of there games are top notched. Sure they make a lot of Mario games but most of there Mario games are fun. (3D land was pure Joy)

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