Log In

Reset Password
BERMUDA | RSS PODCAST

Nintendo makes first loss in seven years

File - In this Sept. 29, 2010 file photo, a visitor operates a Nintendo 3DS featuring 3-D imagery during a press conference by Nintendo Co. President Satoru Iwata where he launches the new game machine which will hit the Japanese market in Feb., 2011 in Chiba near Tokyo, Japan. Nintendo reported Thursday, Oct. 28, 2010, it sank into the red for the fiscal first half, battered by a rising yen that hurts exports and plunging sales as demand for its game machines ran out of steam. (AP Photo/Shuji Kajiyama, File)

TOKYO (AP) — Nintendo sank to a first-half loss, the first in seven years, as a rising yen and long-delayed release for its 3-D gaming machine set the scene for a weak full-year result.

Kyoto-based Nintendo Co., which makes Pokemon and Super Mario video games, said yesterday it posted a 2.01 billion yen ($24.7 million) loss for the six months through September. First-half sales dropped nearly 34 percent to 363.2 billion yen ($4.46 billion).

Nintendo last month shocked the gaming world by announcing its much awaited 3DS, a handheld packed with glasses-free 3-D technology, wouldn't be ready for the year-end shopping season when Nintendo rakes in about two-thirds of its earnings.

It will be released in February in Japan — missing Christmas and then January, a key sales month because of the New Year's gifts Japanese children get. Releases for Europe and the US will follow in March.

The half-year loss is the first for the maker of the Wii home console and DS handheld since 2003. Nintendo did not break down quarterly numbers. It posted a 69.5 billion yen profit for April-September 2009.

Nintendo spokesman Yasuhiro Minagawa said the yen's strength against the dollar — which reduces earnings brought back to Japan — drove down first half sales by 28.1 billion yen ($345 million).

Because of 3Ds delay, Nintendo last month slashed its full-year earnings forecast to 90 billion yen ($1 billion) profit from 200 billion yen ($2.4 billion) profit. That would represent a 61 percent plunge in profit from the previous year.