Nintendo has remarkably posted its first annual loss. They have blamed the poor sales of its Wii console which faced strong competition from other challengers in the market such as the Xbox Kinnect. It was not a complete shock for the Japanese company as they had expected losses of 65billion yen but actually fared better with 43.3billion. The company said it now expects to see a profit this year as the strong Yen had been the main factor their losses.
With the strong Yen Nintendo has seen production costs rise but as the Yen is now expected to fall it will help the company enormously. A key factor to the games market going through a tough time is the Smart Phones are what people use now. Stuart Miles from Pockt-Int.com said: “The games console market is declining altogether because mobile phone devices are allowing casual gamers to play much more easily wherever they happen to be.”
Nintendo which was the market leader for video games has suffered from the strong competition from smart phone games. It used to have titles such as Mario brothers and Pokemon to supplement the lack of consoles it might not sell but it seems this has not been the case. There are changes afoot though with 2D Super Mario bros game being launched this August which they hope will ease the finances.
The company had also been selling their new 3DS device at below cost due to ever increasing market competition.
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