Nintendo Has Poor Financial Results Due To Strong Yen [Gaming Giant Loses Profits Based On Currency Exchange And Price Cuts On Nintendo DS]

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Nintendo may be the darling of this console generation, having sold millions of millions of Wiis to people who only bring them out for a party once or twice a year. Kidding, of course. Jokes aside, Nintendo do so well in their last financial quarter. They posted a net loss and cited the strong value of the Japanese Yen as hurting exporting to North America and Japan.

Per the WSJ, Nintendo cites the strong value of the Yen as canceling out the gains from recovering consumer purchasing power as well as price-cuts and new products in the Nintendo DS family. When it was all said and done, Nintendo lost about $288 million this last quarter. Compared to that time last year, they made roughly double that.

While pricecuts in the DS family in Japan and Europe stimulated demand, they also cut into Nintendo’s profits, as you’d imagine.

Despite all their issues this last quarter, Nintendo still expects to do a booming business this fiscal year, which runs until March 2011 for them. With the Nintendo 3DS expected to come out sometime between now and then – you’ve got to imagine that the new 3D handheld will surely boom their bottom lines. Unlike Sony and Microsoft – who often sell new consoles at a loss and make it up on the licensing fees per game, Nintendo usually has some profit on the consoles, even when they’re first released.