Nintendo Takes Hit

Nintendo today posted its first ever quarterly loss since it began reporting quarterly figures in the 2003/04 financial year. The loss comes after the launch of their 3D-capable handheld device, that was brought to market over growing concerns over their competitors gaining an edge, both with 3D technology and through mobile applications on smartphones.

The slump in 3DS sales is believed to be partly down to the limited selection of big-name software currently available for the device, with many of the companies expected big earning titles coming out towards the end of the calendar year.

 

 
Fans line up for UK Nintendo 3DS launch

Nintendo will also have the added element of increased competition come November when Sony launch their latest handheld, PlayStation Vita, which will feature both a touchscreen on the front and a touchpad on the back. As well as sixaxis motion sensing and a three-axis electronic compass. The unit will retail for $249 (£229 / €229 / 24,980 Yen) for the Wi-Fi only version and $299 (£299 / €299 / 29,980 Yen) for the Wi-Fi and 3G version.

There is also increasing competition from Apple, who now offers a choice of over 100,000 games and entertainment-based applications via their AppStore, and have now sold more than 200 million iPhone, iPad and iPod devices to play them on.

To help counter their losses Nintendo have announced plans to slash their 3DS handheld to $169.99 in the United States on August 12 and 15,000 Yen in Japan on August 11, which is a massive 40 percent price drop, and a move that is unprecedented within the first six months of a major hardware launch. They’ve also announced plans to cut prices across Europe by about a third, with some UK retailers already selling for as low as £169.99 due to unexpectedly low sales figures.

 

 
Can Mario put Nintendo back in top gear?

Along with sales they’ve also slashed their yearly forecast from 175 billion to just 35 billion, a staggering 82 percent, which is their lowest projected forecast since 1985, when everyone in North America was playing Super Mario Bros. for the first time.

It looks like Mario to the rescue once again as Nintendo are pinning their hopes on Super Mario 3DLand and Super Mario Kart to help boost sales coming into the holiday period, released November and December respectively. Then come 2012 they will launch their new Wii U console, which is to include a touch screen controller and high-definition graphics, with hopes of it mirroring the success of the Wii, which has currently sold 88 million units to date.


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Craig Bryan, NoobFeed
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