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Welcome to the cork gaming podcast, we are 3 friends who love to play and chat about games. With this blog and the podcast we hope to bring gaming news with some fun and laughs.

Friday, 17 January 2014

Nintendo to post annual loss

Poor old Nintendo has warned that it expects to post a net loss of 25 billion yen (£147m) for the financial year ending March 2014, citing much weaker-than-expected sales of Wii U and 3DS hardware.

Nintendo had said it expected to report a full-year profit of 55 billion yen (£323m). Full-year sales are now expected to come in at 590 billion yen (£3.5b), down from the previous guidance of 920 billion yen (£5.4b).

The company also expects to post a full-year operating loss of 35 billion yen (£205m), versus its previous forecast of a 100 billion yen (£587m) profit.

Nintendo president Satoru Iwata said today: "Wii U sales showed some progress in the year-end sales season as we released various compelling titles from the summer onwards, launched hardware bundles at affordable price points and also performed a markdown of the hardware in the US and European markets; however, they fell short of our targeted recovery by a large margin.

"In particular, sales in the US and European markets in which we entered the year-end sales season with a hardware markdown were significantly lower than our original forecasts, with both hardware and software sales experiencing a huge gap from their targets.

"In addition, we did not assume at the beginning of the fiscal year that we would perform a markdown for the Wii U hardware in the US and European markets. This was also one of the reasons for lower sales and profit estimates."

Basically it comes down to poor Wii-U sales overall for nintendo, it is now unlikely that they can significantly compete with likes of Xbox one and the PS4. Most third party developers have shown lack of interest for developing for the Wii-U, with the majority thinking it isnt powerful enough. 

The 3DS is nintendo's saving grace but with a recent court case decision, they now have to pay some of their profits form every 3DS to a patent holder. all in all its not good for nintendo and some are saying iwata needs to stand down from his position.