Nintendo, the world’s largest maker of video games and the creator of the Wii console has projected its net loss for the year ending March 2012 to reach ¥20bn, a sales report by the company revealed. The figure is the greatest net loss ever reported since 1981.
The company admitted it is facing a hard time and attributed the weaker-than-expected sales to the strong yen and the stringent competition against online games in social media sites like Facebook and games on mobile phones.
For years Nintendo’s sales from the Americas and Europe has accounted for 80% of its revenues. The firm recognized that the weakening of the currency from these regions against the yen made their products uncompetitive as the yen surged 13% for the past quarter against the euro and 4.5% against the dollar based on Bloomberg data.
The Kyoto-based Wii console maker sold 710,000 units of Nintendo 3DS from April to June, after which the company slashed its price by 40% in August. The measure saw sales increased by three times the following three months.
"Sales of the Nintendo DS hardware and Nintendo 3DS software were weaker than expected. In addition, the yen appreciation was beyond expectation," the company said in a statement.