Nintendo Cuts Fiscal Year Profit Forecast Amid Weaker Demand for 3DS Games Device
The Japanese games console maker reported a narrowed loss for the first six months of its fiscal year even though the strong yen continued to affect results.
TOKYO – Nintendo on Wednesday reported a lower loss for the six months ended Sept. 30, but lowered its profit forecast for its full fiscal year amid weaker demand for the 3DS hand-held games device and a persistently strong yen.
The game console maker posted losses just shy of 30 billion yen ($351 million), compared with a deficit of over 70 billion in the same six months in 2011, when it registered its first ever full year of red ink. Revenue for the period was down 6.8 percent compared to last year.
Nintendo is now forecasting a profit of 6 billion yen ($75 million) for the fiscal year that ends March 31, 2013, compared to its forecast of 20 billion in July. It cited stiff competition for casual gamers from smartphones and other mobile devices, along with the weakness of the dollar and euro against the Japanese currency,.
The company for last year recorded its first annual loss since going public in 1962.
The Kyoto-based company said that it expects to sell 17.5 million of is portable 3DS consoles in the fiscal, reducing its forecast from July by a million units.
The strength of the yen, which is hurting almost all of Japan’s exporters, cost Nintendo 23.2 billion yen ($290 million) in the first half of this financial year alone.
The new Wii U console is scheduled to be in shops around the world in time for the holiday season. The company is forecasting sales of 5.5 million units by the end of March.