Nintendo’s hot streak of posting positive fiscal results has come to an end as the company announced its first annual loss in 30 years.
The game giant reported a net loss of 43.20 billion yen ($514 million) in the financial year that ended on March 31st, compared to a 77.62 billion yen ($924 million) profit the year before.
Revenue dropped by 36% to 647.65 billion yen, while an operating loss of 37.32 billion yen was reported for the year.
Nintendo does not release quarterly earnings.
The losses come as Nintendo’s current gaming systems approach the end of their lifecycles. Their current Wii console will be replaced this Christmas with the new Wii U.
Read: Nintendo’s New Wii U Coming Xmas
While Sony and Microsoft pit their high end consoles against one another, Nintendo has been virtually unopposed in the low end market. However, the depreciating price of the Xbox 360 and PS3 has seen the Wii’s pricing lose its competitive edge, in addition to proving technically impotent to smartphone and tablet gaming.
In August of 2011, Nintendo’s 3Ds (a handheld console capable of glasses-free 3D gaming) endured a 40% price cut despite being released less than six months earlier.
Following the release of its next gen console, The Australian reports Nintendo is forecasting a 20 billion yen net profit and an operating profit of 35 billion yen on 820 billion yen revenue.
Nintendo’s results also suffered from well performing yen. The Japanese company keeps a chunk of its cash reserves in foreign currencies, generating profits when the yen is weak and losses when it is strong.
|Nintendo’s Wii U|