Nintendo Expected To Report Massive Losses Tomorrow [Nintendo Set To Post Huge First Half Losses Tomorrow, Will The Second Half Treat Nintendo A Little Better?]

Tweet

Nintendo fanboys around the world might want to sit down, because Japanese newspaper Nikkei reported earlier today that they expect Nintendo to post a huge recurring loss tomorrow for its first half ending September 30, 2011. Just how huge is “huge?” Nikkei warns to expect losses totaling 100 billion yen.

That’s $1.32 billion or £820 million for those of you who live outside of Japan. No matter where you live, however, one thing is for sure: that’s a ton of money, and much more than Nintendo’s forecasted losses of 55 billion yen. Unsurprisingly, Nintendo stock fell 7.5 percent once Nikkei’s prediction hit newsstands.

So, what’s to blame for Nintendo’s losses? Like many other Japanese companies, Nintendo has taken a hit while the yen continues to strengthen, but it also has 3DS woes to blame for its first half losses. Weak post-launch sales were bad enough for Nintendo, but then it went and slashed the price, which may mean more units in the hands of consumers in the long run, but a major hit to profits for the moment.

Never fear though, because Nintendo still has a profit forecast for the full year of 35 billion yen. It isn’t great, but it’s much better than ending the year in the negative. As well, 2012 should hopefully be a better year for Nintendo – with high profile games like Super Mario 3D Land and Mario Kart 7 hitting shelves in just a few weeks and the holiday season fast approaching, 2012 should welcome a boost in both 3DS sales and 3DS titles.

What do you make of these numbers? Is Nintendo in real trouble, or is it just having an off year? Do you think it’ll be able to bounce back in 2012 thanks to an increased 3DS user base and the Wii U, or could the Wii U’s launch spell even more trouble for Nintendo? Head down to the comments section and share your thoughts!

Tweet

You may also like:

Nintendo Cites 3DS Price Cut As Cause For Massive Loss...

Nintendo Revises Financial Forecast, Expecting Bigger...

Nintendo Braces For First Annual Loss In 30 Years...

Sony Reports Significant Year-Over-Year Losses For Q2...