Nintendo posts first annual loss of $460 million, predicts turnaround next year

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Nintendo has announced its first annual operating loss following an initially lukewarm response to its new 3DS handheld and an aging Wii console -- set to be replaced later this year. Nintendo made an operating loss of 37.3 billion yen ($459.54 million) from 2011 to 2012, but intends to spin it around to a 35 billion yen operating profit in the forthcoming year. Net sales have dropped by 36.2 percent compared to last year, despite price cuts on its existing hardware like the 3DS and Wii. The Japanese games manufacturer has also seen increased competition from new rivals like Apple and Android manufacturers as mobile gaming continues to go from strength to strength. Nintendo also laid some of the blame at the weakened yen in international markets, but expects the incoming Wii U, cheaper 3DS production and incoming titles like New Super Mario Bros. 2, Brain Training and Animal Crossing will help turn its fortunes around.

The company sold 36 million 3DS game titles, compared to 80.2 million on the original DS. The original DS still managed to sell 5.1 million units in the last year. 3DS sales were given a shot in the arm following a significant price cut that saw Nintendo selling the devices at a loss.

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[Nintendo posts first annual loss of $460 million, predicts turnaround next year][2] originally appeared on [Engadget][3] on Thu, 26 Apr 2012 03:37:00 EDT. Please see our [terms for use of feeds][4].

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