Nintendo Cuts Losses In Half Thanks To Strong 3DS Sales
Video game console and gaming manufacturer Nintendo has cut its losses to half of what analysts expected. In filing on Wednesday the company reported first quarter results which have rebounded thanks in large part to aggressive pricing for the company’s relatively new 3DS hand-held gaming console. Smarter pricing helped the company double 3DS sales.
Nintendo’s current outlook places global operating profits at $447 million for the full fiscal year.
The gaming firm also noted that just 710,000 Nintendo Wii systems shipping during the quarter, far less than the 1.56 million sold in 2011. 3DS console sales however increased from 710,000 in 2011 to 1.86 million during the same quarter 2012.
In its filing Nintendo revealed it expects to ship 10.5 million Wii consoles in 2012 with even more sales thanks to the upcoming Nintendo Wii U gaming console which will release during this years holiday shopping season.
After reporting its first ever loss last quarter Nintendo was also helped along by strong 3DS software sales.
In the meantime many analysts believe Nintendo could face a tough road ahead. Nintendo’s first Wii system focused on “casual gamers” who were taken in by the systems motion controls, however the advent of mobile gaming for iOS, Android and Windows Phone OS’ have left many casual gamers turning towards mobile options in place of home gaming systems.
If all else fails Nintendo could always become a software developer, following in the footsteps of former console manufacturer Sega which has become a successful gaming developer.
Do you think the Nintendo Wii U will revitalize the company or send its gaming console business packing?
