For the first time in Nintendo‘s history it released it’s profit statistics and the results were negative. One of the greatest gaming companies in the world lost over $500 million dollars during the last fiscal year. You may be wondering how this could be possible considering that the previous year they managed to pull in just under $1 billion dollars in profits and were doing a good job of dominating the video game market. Well, they did not release any new systems this year or any new franchises to encourage consumers to spend more money on their products. In fact, the company was forced to reduce the price of the Nintendo 3Ds, one of their top selling products, to around $170, which is less then it costs to produce, generating a net loss.
Although things currently look grim for Nintendo, they could stills trike back in the coming year. With the release of the Nintendo Wii U there will be a huge increase in sales as well as new franchises to support this new product. Nintendo seems to be counting on countering this negative year with an extremely successful upcoming year.
I personally feel as if Nintendo is slowly being fazed out of the gaming world as more and more gamers switch to major consoles such as the Xbox and the PlayStation. Although I respect Nintendo for everything it has contributed to the gaming world, despite a select few games, I am not incredibly drawn to Nintendo’s products. I don’t foresee any major comebacks for Nintendo in the upcoming year. Although they will most definitely do better financially with the release of new products, I feel that the only way for Nintendo to live up to the company it once was, is to create something completely new that can dominate the market without competing with better companies with bigger audiences and better games.
This is just my opinion. What do you guys think about Nintendo and are you surprised by these statistics? Let me know in a comment!