Nintendo posts massive quarterly loss ahead of 3DS announcement

by Steven Mostyn - Jul 30 2010, 10:08

Eyebrows in the videogame industry may be arched today following news that global market leader Nintendo has posted its first quarterly loss in more than two years.

Citing the progressively stronger yen and also flagging demand for its dual-screen DS portable videogame console, Nintendo’s net loss for the quarter (ending June 30) was $289 million USD, which is a substantial shortfall compared to the $489 million USD profit it registered during the same period in 2009.

Taking a closer look at recent product performance, first-quarter sales of DS consoles dropped by 47 percent to 3.15 million units, while DS software sales plunged 23 percent to 22.4 million units. It’s telling to note that Nintendo published 168 games during Q1 of 2010 compared to 278 games in Q1 of 2009.

On the Wii front, sales of Nintendo’s motion-sensing console actually increased by 36 percent to 3.04 million units during the latest quarter – likely due to the release of first-party juggernaut Super Mario Galaxy 2, which sold in excess of four million units between April and June. That being said, total Wii software sales dropped 9.3 percent to 28.2 million units.

In related news, Nintendo has offered something of a vague tease regarding the price of its upcoming Nintendo 3DS portable console, which it hopes will rejuvenate consumer interest thanks to the inclusion of a glasses-free stereoscopic 3D screen.

Speaking with Official Nintendo Magazine, UK marketing manager James Honeywell said the new 3D iteration of the popular touch-enabled device is expected to sit within the pricing “architecture” established by current DS models.

“We haven’t made any kind of [pricing] announcement at the moment, but the Nintendo DSi is available for around 129.99 GBP,” he outlined. “The Nintendo DSi XL, with the larger screens, is around 159.99 GBP. So obviously, it’s going to fit, kind of, somewhere within that kind of architecture.”

Nintendo spokesman Yasuhiro Minagawa has confirmed via Bloomberg that prices, shipment targets, and official release dates for the 3DS will be announced during a special event scheduled for September 29.

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