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Nintendo reports $24.7 million half-year loss

updated 06:05 am EDT, Thu October 28, 2010

Apple iPod touch effect starting to bite

Nintendo has reported its first half-year loss in seven years. For the six months to September 30, the Japanese gaming giant reported a $24.7 million loss. This was on the back of its sales slipping by 34 percent, in part due to lower demand for the Wii console, but also due to the Apple iPod touch effect on the DS. When questioned about the Apple effect recently, Nintendo of America's President Reggie Fils-Aime told Forbes that Apple's iPhone and iPod were "absolutely" larger threats than the strong sales of Microsoft's recently revamped Xbox 360.

The loss is the first net loss for Nintendo over the first half of a given fiscal year in the past seven years.

Nintendo's forecast for the full financial year are just as grim, with sales of its Wii console expected to slip further. Adding to Nintendo's troubles is the delay of its highly-anticipated 3DS console to March 2011, its planned upgrade for its rapidly aging DS line of handhelds.

The iPod touch, coupled with the iPhone and iPad is widely thought to be doing for Apple in the casual gaming market what the original click-wheel iPod did for Apple in the music player market. Apple claims that it now sells more iPods in one quarter than the DS line and Sony's PSP combined, although only some of these are used for gaming.

While Nintendo had forewarned the market that it sales were stagnating, its shares closed 0.7 percent down. [via BBC]



By Electronista Staff
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Comments

  1. Peter Bonte

    Fresh-Faced Recruit

    Joined: Aug 2001

    -1

    Mario on iOS

    Apple could buy them for the back catalogue and know-how, Nintendo is a private company so that could make it harder or easier to do, i don't know.

  1. aardman

    Fresh-Faced Recruit

    Joined: Nov 2009

    -6

    I sincerely believe Nintendo's goose is cooked.

    Wii's success is an unexpected one-time thing. It got non-gamers to buy the console and I bet most of those are just sitting mostly unused so there will be not very many repeat buyers when an upgraded model comes out.

    Of course I could be wrong but I'm not buying any NTDOY soon. Which makes me wonder why previous poster says it's privately held.

  1. iphonerulez

    Fresh-Faced Recruit

    Joined: Nov 2008

    +2

    What I don't understand is that Microsoft

    claims the Xbox 360 is a true gaming machine unlike the iOS devices, so why would the iPod Touch and iPad be any competition to dedicated gaming machines. Apple doesn't even have a gaming division and real gamers say that Apple's iOS games are nothing but junk. It's difficult to know who to believe when it comes to sales figures and trends.

    Why would old-school gamers want Mario on a device that doesn't even have buttons? It would just seem too weird giving up one's mastered skills.

  1. coffeetime

    Mac Enthusiast

    Joined: Nov 2006

    +1

    SONY vs. Nintendo

    I would rather have Apple buy off Nintendo than Sony. But I doubt any of it will happen because Japanese is so nationalistic. Nintendo or Sony would rather commit kamikaze than give in to foreigners.

  1. SillyPooh

    Mac Enthusiast

    Joined: May 2000

    -4

    4 Reasons

    1_ Reggie is a tool
    2_ People came to ask themselves: 'Why 2 screens again?'
    3_ Nintendo got themselves pawned on features. Nowadays nobody wants a machine just for games.
    4_ iOS devices kick a**

  1. Jonathan-Tanya

    Fresh-Faced Recruit

    Joined: Oct 2004

    +1

    Casual vs. non-casual gaming

    I love the iPod touch for gaming, as well as the iPhone.
    I also like the Wii, and I have both in my house.

    I'm also a movie buff, and for the longest time the PS3 was one of the better, and less expensive Blu-Ray players (that has since changed, nowadays you can easily buy a cheaper Blu-Ray player)...but I just say that as way of explanation that I was drawn to the PS3 - and often went over to give it a try in the local Best Buy.

    But, I was always so disappointed in the games. Why is it some kind of logic puzzle, just to figure out how you get out of the setup screen and to play the game really quick. I would mash button after friggen button (yes I'm getting upset just thinking about it)--- and, for example on this race game, I would go from room to room, and the friggen race wouldn't even start.

    Obviously I needed a book, a map, maybe a tutor....and eventually I could have mastered this game, but please - I'm not going to do that just to try it.

    Argh...now you take a Wii game, you put it in the drive, you start it, you play, you have fun.

    Both the iPhone and Wii are great for that, but have one thing I consider a problem - imprecise controls.

    Goodness if someone could have accurate controls, along side a not too complicated learning curve - and a great catalog of games, that would be perfect for me.

    I'm not the main market for games, thats for sure, but Apple and Nintendo, can still improve on their successes and do better in this area.

  1. Nigel2112

    Fresh-Faced Recruit

    Joined: Sep 2009

    0

    Innovation

    I absolutely do not want Nintendo to be hurt by Apple's success but come on guys, look at the DS, it looks like a relic from the early 90s.
    Apple has simply overtaken the asians by sheer hard work and relentless innovation.

    Let me be blunt:
    Nintendo better be praying Apple is not planning to bring apps to Apple TV.

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