Loss Reported by Nintendo
The largest video game console maker in the world posted its first quarter loss in two years due to a stronger Yen and the lack of new game titles to lure potential buyers for its handheld console.
Nintendo had a net loss of 25.2 billion yen (289 million USD) during the quarter that ended last June. The Kyoto-based company had 42.3 billion yen profit same period last year.
Both Wii and DS suffered loss but the handheld plunge deeper. The handheld console sales fell by 33% in the United States and almost 50% globally.
New games for the DS dropped by 33% in Japan and 20% in North America.
The Yen became stronger against both the Euro (from 124 to 107 per Yen) and the US Dollar (from 93 to 88 per Yen) since the quarter ending March. A stronger Yen means a reduction of the company’s overseas sales.
The next console to be released is the Nintendo 3DS which will allow users to play games with “3D effects without the need for any special glasses”, a process called autostereoscopy. It will come out March 2011.