Nintendo 3DS losses now match its profits following Yen value rise
Japanese games-maker Nintendo’s troubles regarding its 3DS handheld gaming gadget surface again today after it was revealed that the sudden increase in value of the native Yen has meant the console’s recent price drop has cost the company losses equal to its profits.
Following a painful public apology from Mr. Iwata himself, Nintendo addressed a slow opening season for its poorly pre-selling 3D portable by slashing the price to around (or less) than half of its original asking price and offering free games and services for those early buyers. This losing the company ¥70.3-billion in just six months. Assisted by the re-release of popular classic, The Legend of Zelda: Ocarina of Time, the 3DS seemed to enjoy satisfying sales for the first time since its public release back in March. The console saw a 260% turn-around of sales in the United States alone.
However, that magic star had a short lived effect. That was in regards to units shifted. The financial earnings are something entirely different and we now find out that the recent sharp rise in strength of the Yen means that Nintendo’s expected first year’s net profit for the 3DS portable, previously stated as ¥900-billion has dropped to ¥790-billion – and recent losses during the price cuts in the last few months has sadly mirrored the money gained.
Will Japanese gaming-giant Nintendo bow to Apple’s iPhone? Not likely, says Iwata. Read the Gadget Helpline’s coverage of the Nintendo President’s comments in our article – HERE.
Tags: 3d, 3ds, Apple, earnings, equal, finance, Handheld, iOS, iPhone, iPhone 4S, iwata, legend of zelda, losses, Mario Kart, nintendo, ocarina of time, Portable, problems, profits, Rise, sales, strength, super mario, Yen