Nintendo has fallen victim to fading fortunes as gamers flock to Facebook and free social gaming sites. The Japanese gamer announced shock net loss of possibly 20 billion yen ($264 million) for the year ending in March, despite releasing the first 3D handheld console earlier this year.
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|Nintendo 3D S in lavander pink, announced this week.|
This marks a major fall from grace for the gamer, who earlier predicted 20 billion-yen profit.
If the loss comes to pass, it will be the first time Nintendo has ever posted a loss since it began releasing earnings in 1981.
Full-year sales forecast was also cut by over 100bn yen to 790 billion, in spite of the gamer recently slashing the price of Nintendo 3D S flagship by $100 in Australia to $249 and worldwide, in a bid to push sagging sales of what was thought to be a breakthrough 3D gaming device.
“We are cutting costs steadily and plan to release major titles seamlessly” to recover earnings, Nintendo President Satoru Iwata said at a press conference in Osaka, yesterday.
Nintendo shares fell 0.6 percent to 11,110 yen at the close of trading in its native Japan, bringing the decline to 53 percent so far this year, according to Bloomberg.
This comes as Facebook recently revealed it had 200 million regular gamers on its site playing the likes of Farmville and Zygna and Mafia Wars, as gaming flock to free mobile sites ahead of traditionally pricey titles and consoles.
And the top 10 games boast 12 million users a piece, said Facebook CEO Mark Zuckerberg revealed last month.