Nintendo expected to post £823m loss tomorrow
It would appear that even a damn good product launch can't save a company from losing money, even a company as big as Nintendo with huge losses forecasted
Nintendo is expected to announce a loss of around £823 million tomorrow for the year ending September 30. The announcement has come amid concerns for the company after it slashed the price for the Nintendo 3DS by a third to try and boost weak sales.
The reasons behind the loss are not yet clear but experts have put one of the reasons being the strength of the Yen, this is because Nintendo makes nearly 80% of its sales overseas and with the Yen increasing in value the stregth of its cash abroad significantly drops.
While it is a significant announcement it should be taken into account that many companies in Japan are suffering the same problems as their currency gains strength, weakening their overseas revenue streams.
With the Nintendo Wii U due to make its debut next year all eyes will be turned on Nintendo's upcoming console as the company tries to find a place in a market which had become increasingly competitive in recent years.
What do you think, will Nintendo be able to ride the storm? Let us know what you think via the comments box below...