Nintendo Records First Ever Annual Loss

Nintendo have announced a loss of ¥43 billion ($654 Million) for the financial year ending March 31st, the first annual loss in the company's one hundred and twelve year history.

More than half of this loss (¥27.7 billion / $421 Million) was attributed to unfavorable exchange rates, thanks to the fact that the company does more than three quarters of its business outside of Japan. Despite the disappointing result for the company, the loss was less than Nintendo had predicted thanks to an upsurge in 3DS sales.

Sales overall, however, are down 36.2% from the 2011 financial year, which were in turn 29.3% lower than 2010, on the back of a steep decline in sales of the company's flagship Wii console.

Next year, Nintendo anticipate a return to profitability, with sales of ¥820 billion ($12.5 billion) forecast, an increase of 26% on this year's ¥647 billion ($9.8 billion). Additionally, Nintendo anticipate cost reductions in the manufacturing process will lead to the 3DS system being able to be sold at a profit, rather than making a loss as it has been since the surprise and significant price cut the device received soon after release.

Nintendo also plan to release their next home console - the Wii U - by Christmas this year (in all territories), which should result in a sales boost on their books in the last three months of the financial year.

Source: gi.biz