Reuters report: Nintendo set to announce first ever operating loss
A new report from Reuters indicates that Nintendo will announce its first ever operating loss tomorrow. This comes “after estimating a 45 billion yen deficit for the business year just ended.”
David Gibson, an analyst for Macquarie in Tokyo, offered some commentary as to why Nintendo has encountered struggles with the market:
“They have been beaten by smartphones and tablets, in particular, for consumers spending and, more importantly, time.”
Nanako Imazu, an analyst for CLSA in Tokyo, estimates that Nintendo will only be able to break even with the Wii U by selling it for roughly $350.
While this may all seem like doom and gloom, Imazu believes Nintendo will be able to bounce back with titles such as Mario Party 9 and Dragon Quest X. Imazu said Nintendo obtains nearly four-fifths of its revenue in overseas markets.
Two more remarks from Imazu and Gibson respectively:
“Nintendo has to deal with the change and let Mario games be played on non-Nintendo devices. I think it will take at least couple of years to see that.”
“With its 8,000 yen a share in cash, it can afford to still make a bet that its hardware will sell.”
You can find more information about Nintendo’s financial situation and upcoming results here.
