News Column

Nintendo posts operating loss in April-June for 4th year

July 30, 2014

Nintendo Co. on Wednesday reported an operating loss of 9.47 billion yen for the April to June period, remaining in the red in the quarter for the fourth straight year due to weak sales of its Nintendo 3DS portable game console.

Nintendo posted a group net loss of 9.92 billion yen, compared with a year-earlier profit of 8.62 billion yen, on sales of 74.70 billion yen, down 8.4 percent.

Sales of Nintendo 3DS consoles plunged to 820,000 from 1.4 million a year earlier due to a lack of popular software. Sales of software titles dropped 22 percent to 8.57 million units.

The gaming giant's earnings were also weighed down by the yen's climb against other major currencies, leading to a foreign exchange loss of 5 billion yen.

On a positive note, sales of Nintendo's Wii U home video game console more than tripled to 510,000 units, from 160,000 a year earlier, driven by strong demand for the Mario Kart 8 game software.

A company official said Nintendo will launch new software titles for both 3DS and Wii U to bolster sales.

For the full business year ending next March, the company left unchanged its operating profit outlook of 40 billion yen and net profit projection of 20 billion yen.

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Source: Japan Economic Newswire

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