For the first time in history, Nintendo anticipates that it’ll experience its first annual loss since 1981.
Nintendo Co., the world’s largest maker of video-game machines, forecast its first annual loss in at least 30 years after the yen reached a postwar high and the new 3DS console had weaker-than-expected sales.
The net loss may be 20 billion yen ($264 million) for the year ending in March, compared with a previous projection for a 20 billion-yen profit, Kyoto, Japan-based Nintendo said in a statement yesterday. That compared with the 12.2 billion-yen average profit of 22 analysts’ estimates compiled by Bloomberg.
Nintendo, which gets about 80 percent of its revenue from the Americas and Europe, is predicting lower profit after the yen gained against the dollar and surged to a decade high against the euro, trimming the repatriated value of overseas sales. President Satoru Iwata cut the price of the 3DS by 40 percent in August as gamers flock to Apple Inc. (AAPL)’s iPhone and iPad, and Facebook Inc.’s website.