Nintendo just posted an annual loss of more than $530 million, as the company struggles with the decline of the Wii console and the lackluster launch of the 3DS handheld machine.

The company was hurt in part by the 3DS price cut that it was forced to make after initial sales of the handheld device fell short.

So where does the company go from here? The biggest move is the planned release of the Wii U later this year, which puts a 6.2-inch touch screen into the controller of the console.

Nintendo is expected to give more details on that machine at the upcoming E3 video-game convention.

The company has so far resisted pressure to make its games available for non-Nintendo mobile devices and smartphones.

Nintendo says it plans to start turning a profit on the 3DS by the middle of the upcoming fiscal year. It’s also looking ahead to the release of games including a new installment of “Brain Age” and “New Super Mario Bros. 2″ for the 3DS.

By the way, some sites are calling it Nintendo’s first annual loss in 30 years; others are saying it’s the first in the company’s history, which had been our understanding. The furthest records we could find go back to 1981, and it’s definitely the first loss over that time period. We’ve asked for clarification, and we’ll update this post if we hear back.

Comments

  • Guest

    We’d prefer to see a cross-platform strategy from Nintendo. I think I speak for everyone when I say I carry a smartphone that has enough processing power to play games. Why must I carry a separate Nintendo game device?

  • Guest

    They should kills their hardware and port their apps to iOS. Who would have ever thought that Apple would become the leader in gaming?

    • Hulk

      So a company that practically played an enormous part in system evolution and revolution and a game play mechanics should fold tents and kiss the boots of Apple?  Do Nintendo not deserve to retain their pride?  You people will forver blindly kiss the ass of Apple.  Look forward to a dead industry where people sell themselves just to access facebook games.  How pathetic a direction this charming industry is heading because of people who lack the appreciation and care to invest some soul into it.

      • Guest

        No such thing as pride, Hulk. Only money. Remember when Sega didn’t license their games and instead made gaming systems of their own? They make far more revenue now in just selling their games on consoles and phones.

      • Guest

        I give you the logical business strategy they should pursue. You give me emotion.

        They can retain their pride into bankruptcy, or retain their business by charting a new, more sustainable direction. The choice is of course theirs.

  • Hogan

    Why is there still emphasis on the 3DS’ underwhelming launch?  The machine has rocketed in sales now, surpassing even the original DS for sales in it’s first year.  As for the operating loss.  People are sending doom and gloom messages as a result of this, yet they fail to appreciate just how enourmous Nintendo’s war chest really is.  They are not on the brink of bankruptcy.  Sega survived many system failures, yet Nintendo have enjoyed success with almost all of their ventures.  So why not post something positive, rather than focus on the bad news bandwagon that surrounds the company?

    • http://geekwire.com Todd Bishop

      Thanks for the comment. Nintendo just posted an unprecedented annual loss. The 3DS launch gets a big part of the blame, because it forced the company to cut the price dramatically, and they continue to lose money from it, even as the unit sales have rebounded. Doesn’t that make sense to report?

    • Guest

      It’s just business, Hulk. Based on your posting history, you seem very concerned that these articles will cause Nintendo to go out of business. They will continue to sell to their core customer base, but the mainstream customers want smartphone games and multipurpose home consoles that can do things like high-definition streaming video playback. Nintendo has stuck to an antiquated model that, quite frankly, is suited for a much smaller enterprise. We would recommend a major restructuring to lower costs.

      You can still use Nintendo 3DS though. Don’t worry; nobody will take yours away.

  • ChristopherCLara
  • Greg137

    Let nintendo live in the lie, then watch them die as a company(its a joke, people)… BUt seriously Nintendo should quit trying to force feed their consumer base gimmicks like motion controls, and go back to making good games … if they wanted to include motion controls they should have considered making them optional.. People don’t like having gimmicks force fed to them.. Casual gamers may like them and that is fine(its your arm, and if you want to hold it out for 10 minutes straight just to fly a stupid loftwing go ahead, but Some of us have sensitive bones which don’t respond well to such abuse, and many worry of carple-tunnel.. The Wii has a classic controller, but because Nintendo is too lazy, and because they earn money from every wii mote that goes through the dry wall, and breaks (replace ment costs).. That or they have entered into some shady deal with a battery company..
    Anyway because of that the Wii’s flexibility is hampered and many gamers are being left out in the cold.. So, what other choice to people have other than to buy a brick of a costly gimmick, or do without… So, many choose to do without, and so Nintendo is now losing money… The Wii has great flexible potential, but Nintendo’s determination to force feed gamers by not offering additional controller options is what is killing them as they remain as inflexible as ever… Many gamers who are put off by motion controls are not buying Nintendo products because of the fact that nintendo won’t let gamers join who don’t like motion controls join in the fun… Nintendo doesn’t want you as a customer if if you don’t like motion controls… So, why should we sponsor a company that forces players to use a heavy brick that looks like a unicorn sex device, that doesn’t always respond, sucks batteries of one third of their power wasting all of that remaining energy(the remaining two thirds), and is heavy enough that if it slips, and hits a wall( is almost garenteed to go through the dry wall), and if it doesn’t via wrist strap it is paving the way to put the owner in the hospital with carple tunnel syndrome or wrist stress fractures!?!?!? There are planty of wii games that give players the choice, or at least use digital functions, so you aren’t ruining your wrist in the process… Nintendo could learn a thing or two from the third party developers for their Wii system…

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