Japanese video game giant Nintendo, after two years of record growth, saw sales drop by more than half in the first quarter. Revenues amounted to 816 million euros, 50,2% less than in the same period last year.
The main reason is the negative performance of the latest portable device launched by the Japanese group: the Nintendo 3DS which sold only 710 units in this second half. Nintendo's turnover had already decreased by 25,6% in the first quarter of 2011 due to the strong market swings. The nintendo 3DS, the latest portable device has sold 4,32 million units since the beginning of the year; while the Wii, in the first quarter saw 1,36 million sales and 1,56 million in the last three months.
The Group also suffered due to the appreciation of the yen against the dollar. It also recorded an operating deficit of €328 million and a net loss of €220 million. However, according to a note, the group has made large investments linked above all to research and development activities for the new Wii U which will be released in 2012. But the Japanese giant must focus more on the marketing of the 3DS, with which play 3D without glasses. The first move he launched was a more than 40% drop in price. At home, the 3DS will cost 15 yen (from 25 yen), less than 140 euros. The reduction will be effective in Japan from August 11, while in Europe and the United States it will be necessary to wait at least until September, but no precise date has been confirmed.
Declining popularity, the appreciation of the yen, and rising spending have led Nintendo to revise its forecasts for financial results for the year downwards. The expected profit is 175 million euros (20 billion yen), against the 990 million (110 billion yen) expected and the 698 million (77,6 billion yen) collected last year.
Source: Lemonde.fr
