In news that I'm sure will be heartbreaking to hear for KGB Nintendo super-fans Pat and Zack, the big N just posted a huge loss for the 2011 fiscal year. That means that from April 2011 to March 2012, Nintendo lost over $530,000,000. That'd be like losing a million dollars 530 times. Which seems like an awful lot.
Hardware sales have not been as quick as Nintendo had hoped for, and even ended up falling short of the revised numbers they predicted earlier this year. According to reports, the 3DS sold 13 million units, the Wii 10 million, and the DS sold 5 million. It seems safe to say that the bulk of the blame for the sluggish sales can be placed squarely on the fact that there's just not a lot of games coming to these systems. The 3DS had one of the worst launch line-ups ever, and only recently have quality titles hit the system with any sort of regularity.
The Wii is obviously at the tail end of its life cycle, and the Wii U remains a giant question mark with consumers and investors alike. A re-unveiling of the new system is planned for E3 this summer, and Nintendo needs to impress with what they show. With the expected announcement of next-generation hardware from Sony and Microsoft sometime in the next 12 months, Nintendo's Wii U is already facing an uphill battle in terms of winning core gamers over.
In fact, Nintendo has so much faith in what they have to offer, they are predicting a net profit for fiscal 2012. The house of Mario hopes to bring in $245 million this year, with the launch of the Wii U and stronger sales of the 3DS leading the charge. If anyone out there remembers the Nintendo 64 days, you may have a strong case of deja vu. It seems that Nintendo has floundered when attempting to reach anything more than the casual market. The Wii caught the public's imagination with its then-innovative motion controls, but quality games were hard to come by, and most 3rd party developers abandoned the Wii late in its life cycle. The Wii U announcement at last year's E3 brought the promise of major 3rd party support, but whether or not that comes to fruition is another matter.
|I just wanted an excuse to use this image again.|