Nintendo today announced that it came out of the last quarter with a net loss of $589 million, and lowered it's full year projections from a $260 million profit to a $260 million
loss.
Nintendo says that the poor results are due to several different factors, among them are sales declines on software and hardware, as well as a hit on profit margins due to price cuts.
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The color of the logo matches the color of the numbers on Nintendo's quarterly results |
It is of course no secret that the
3DS handheld console has not done at all as well sales wise as Nintendo was hoping, but at least Nintendo are seeing increasing sales now that they have implemented a significant price reduction on the system.
Nintendo states that the decrease of game sales are due to lack of "hit titles", with the only exception being the 3DS version of The Legend of Zelda: Ocarina of Time.
So what to make of this?
I am not surprised that Nintendo is experiencing severe setbacks in their earnings.
The Wii seems to really be a "done" console by now. There are very few games of significance coming out for the system, and the general public seems to have tired of the novelty of motion controls, which the Wii really pioneered.
Furthermore, both Microsoft and Sony have by now tried to steal the motion controlling thunder from Nintendo, by bringing out their own versions of motion controls in the form of the Move and the Kinect (With Kinect itself adding a new novelty of controller free motion control gaming).