Nintendo recently posted a net loss of 43.2bn yen (530 million dollars) for the 2011 fiscal year (which stretches from April 2011 to March 2012), a first for the company. These losses were in spite of their newly released 3DS handheld console dominating the Japanese market, outselling Sony’s PlayStation Vita 10:1. Last year the company reported a net gain of 77.6bn yen (959 million dollars). The companies’ losses this year were not, however, as bad as previous estimates had predicted.

Hardware sales were not able to reach predictions Nintendo announced three months ago, predictions Nintendo had reworked downward from previous estimates. Globally, the Nintendo 3DS sold 13.51 million units, the Wii 9.84 and the DS ‘family’ 5.1, while expectations had had the 3DS at 14 million units, the Wii at 10 and the DS ‘family’ at 5.5. Even though actual hardware sales did not fall too far from what Nintendo had predicted, the results are still disastrous for the company. Software sales, meanwhile, were 36 million for the 3DS, 102.37 million for the Wii, and 60.82 for the DS ‘family.’

Regarding these results, the company stated: “While [Nintendo] did post a loss for the recently completed fiscal year, the continuing momentum of the Nintendo 3DS and the global introduction of the highly-anticipated Wii U home console will drive the company back into profitability in the current year.” In a separate announcement, Nintendo predicted a net profit of $245 million for the upcoming fiscal year.

Nintendo went on to say that by the middle of its current fiscal year (around August 2012), the 3DS will cease to be sold below cost of making one, meaning they will start to see a profit from the handheld. The company also announced that New Super Mario Bros. 2, Animal Crossing and a new Brain Age series title are in the works, with the latter releasing in Japan sometime this summer. These games, along with other upcoming ones, will definitely give Nintendo a boost in software sales and help move consoles.

In addition, Dragon Quest X: Waking of the Five Tribes Online was reported to have a Japanese release date set for August 2. No release date for other regions has been announced yet. The title marks a first for the Dragon Quest franchise: never before has an MMORPG entry in the series been released. A Wii U version will follow, although at this time there is no information on it available.

Dragon Quest X is set to sell for 6,980 yen ($86), and a separate version will also be available that includes a USB flash drive for 8,980 yen ($110). A flash drive is required to play the game.

Although details are scarce, these big games look to get Nintendo out of the red this coming year and hopefully help the company reach its $245 million goal. Stay tuned at Toonari Post for more details.

Image Courtesy of   Barone Firenze / Shutterstock.com

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Nintendo sold 3.61 million 3DS’ in its previous quarter. Since then, sales have dropped to 710,000 units in the last three months. Profits have also declined from lack of sales for other Nintendo products. The company lost 25.5 billion yen in the last 3 months ending June 30. They also had to lower profit and sales forecast by 82 Percent and 18 Percent, respectively.

Hearing news of this, Nintendo slashed the price for its latest innovation, the Nintendo 3DS, to $169.99 from its original price of $249.99 — a 30 percent drop. Price will come into effect as of August 12, making for a successful holiday season for Nintendo.

This was not the first price cut they made this year. Due to a drop in sales earlier this year, the Nintendo Wii also went down in price, from $200 to $150 on May 15. In the eyes of the consumer, spending $249.99 on a handheld system is no bargain, when a Nintendo Wii system costs $100 less.

What does this mean for the majority of consumers who have already purchased a Nintendo 3DS?  According to Nintendo, loyal customers will receive 20 free downloadable games from the Nintendo eShop. For 10 of those games, Nintendo has no intention of selling them in the future and they are redesigned exclusively for this purpose. Games included on that list are: Yoshi’s Island: Super Mario Advance 3, Mario Kart: Super Circuit, Metroid Fusion, WarioWare, Inc.: Mega Microgames and Mario vs. Donkey Kong, all originally from Nintendo’s Gameboy Advance console. Starting September 1, those members will also have access to 10 new games before they become available to the public. Super Mario Bros., Donkey Kong Jr., Balloon Fight, Ice Climber and The Legend of Zelda are some of the games featured on that list.

Another way Nintendo is trying to boost sales and profit is by releasing remakes of Nintendo classics such as Zelda: Ocarina of Time, Mario Kart, Starfox 64 and Kid Icarus.

They are hoping that its features will be enough to sell the product as well, with its access to Netflix, they are calling it a must have. In addition, the Nintendo Video service provides access to all sorts of 3D video viewing. Finally, Users have access to the Nintendo eShop, where they can purchase downloadable games, view game trailers and have access to product information.

Satoru Iwata, the president and CEO of Nintendo, is taking full responsibility for their losses, which has led him to voluntarily cut his $2 million pay check by 50 percent. He is not the only one taking a pay cut. Other representative directors are taking a 30% pay cut, and executives are deducting 20 percent from their salary. These will be very favorable moves for shareholders.

Nintendo is in the process of working on a new project, Wii U, which is expected to launch next year. In an interview, Iwata says that this new project will not be cheap and sell for about $250. Due to the company’s sacrifices and innovations, Nintendo expects to see an increase in its profits.

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