These estimated losses almost double that of the ¥55 Billion (725 million) that Nintendo had previously assessed earlier this year. It’s expected that a bulk of this damage is being caused by the strong yen. Since 80% of Nintendo’s profit comes from oversea sales, the unusually strong yen is taking a nasty chunk out of the company’s bottom line. This new estimate is a 27-year low for the company, and doesn’t bode well for Nintendo’s already declining stock prices.
News such as this isn’t exactly what stockholders and fans of the company want to read, but the silver lining in this dark and gloomy cloud is that none of these numbers are an indication of the upcoming Holiday sales. Nintendo has some big games like The Legend of Zelda: Skyward Sword, Super Mario 3D Land, and Mario Kart 7 coming down the pipes later this year, so they still have the potential to turn things around and move units before the Wii U hits next year.
Hopefully Nintendo can get things back on track, and with the Holidays quickly approaching (and a recently reduced price) the Nintendo 3DS looks like it may be a winner amongst the yuletide-fueled masses. Hypothetically, if things don’t work out for Nintendo then Mario and friends may find a home elsewhere… maybe Apple should buy Nintendo, since they seem keen on getting into the market.
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Source: Reuters
