Apr 27, 2012 11:16 AM EDT
Nintendo Entertainment System, one of the largest video game industries, is suffering a net loss of 43.2 billion yen,$533 million, for the first time in 30 years. Their fiscal year ended March 31, 2012 as posted in the company's website.
The company felt its huge loss due to low sales for the Nintendo Wii console and 3DS system.
"The net sales were down due to a decrease in the unit sales of the "Wii" and "Nintendo DS" hardware and software around the world," said Yoshihiro Mori, Nintendo's Senior Managing Director.
"There were a few other factors which led to the decline of sales; the effect of the price reductions of hardware systems, the impact of absorbing the inventory markdown taken into account in connection with the price reductions, and the stronger yen against the average exchange rates of the U.S. dollar and Euro, which were used to convert the sales in foreign currencies to those in yen, compared to the previous fiscal year," Mori added.
Nitendo's net sales were 647.6 billion yen,$ 8 billion, however, the company is facing an operating loss of 37.3 billion yen,$460 million. With the appreciation of the yen against the U.S. dollar and Euro, in comparison with the exchange rates at the end of the previous fiscal year, the company faced an exchange loss totalling 27.7 billion yen,$342.5 million, and the ordinary loss was 60.8 billion yen,$751.7 million.
Despite the losses, the company is optimistic and is hoping to maintain steady sales for "Mario Kart 7" and "SUPER MARIO 3D LAND" game titles, which has been doing well until now.
"For the fiscal year ending March 31, 2013, we aim to make the 'Nintendo 3DS' spread more widely and to make the 'Wii U' spread from the beginning of its launch. We will continue to strive to expand our business by providing games and services which make use of the features of those hardware systems," assured Mori.
Nintendo will be looking to revamp its current gen console with a new Wii U system which is scheduled to make an appearance at the E3 video game conference later this year.
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