Nintendo Reports Loss of $926 Million

Nintendo Reports Loss of $926 Million

Mario, Donkey Kong and Kirby may well have to trade their luxury palaces for beat-down, smelly shacks if things continue this badly for Nintendo, who has just revealed their massive losses they’ve suffered this year.

Nintendo is reporting that net losses for the first half of the year are currently at a huge $926 million dollars, placing the blame on ‘unfavourable exchange rate changes, declines in hardware and software sales, and decreasing margins thanks to price cuts and inventory markdown’.

Earlier this year Nintendo was forced to cut the pricetag of the relatively new 3DS by an exceptional amount, a decision that has seen a slightly rise in hardware sales. However the lack of strong gaming titles outside of the Legend of Zelda: Ocarina of Time 3D has caused a general decline in software sales for the Big N. Sales of Wii hardware, and software, have also been on the steady decline.

The overall result means that predictions forecast a significant loss in the Nintendo camp for the entire year – that is, of course, unless The Legend of Zelda: Skyward Sword sells about 10 hundred million copies. Which it may well do. We’ll see. I’m sure Nintendo can still cope though, they are a multi-billion dollar empire.

Here’s hoping the fortunes of Nintendo change next year, with the planned introduction of the Wii U. I’d be very sad to see them go – the last thing we want is for Nintendo to go down the Sega route, and I hope they can revitalise their fortunes come 2012.

What do you think though reader? Are you shocked by Nintendo’s losses, or do you think this has been coming for a long time? Let us know in the comments!

You know that Dan Curtis dude who wrote this? He’s one cool cat, and should definitely be immediately followed on Twitter. You know you want to.

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