Nintendo posts first net loss ever

Kyodo

Nintendo Co. said Thursday it posted in fiscal 2011 its first-ever group net loss, of ¥43.20 billion, since it began releasing consolidated earnings results in 1981, due mainly to poor game console sales and the yen’s sharp appreciation.

In the current business year ending next March, however, the Kyoto-based maker of game consoles and software expects a group net profit of ¥20 billion on consolidated sales of ¥820 billion, up 26.6 percent from the previous year. The company is counting on the releases later this year of new game titles and the Wii U home video game console equipped with a touch screen.

For fiscal 2011, Nintendo incurred a group operating loss of ¥37.32 billion on sales of ¥647.65 billion, down 36.2 percent from a year earlier. The results compare with a consolidated group profit of ¥77.62 billion and operating profit of ¥171.08 billion on sales of ¥1.01 trillion logged in fiscal 2010.

Nintendo attributed the operating loss in fiscal 2011 to price cuts for its Wii console and the 3DS portable device, which is capable of showing 3-D images. The company said it incurred foreign exchange losses of ¥27.7 billion due to the strength of the yen.

The company plans to pay a full-year dividend of ¥100 per share for fiscal 2011, down from ¥450 the previous year.