Nintendo To Post First Annual Loss, Grossly Underestimates Losses
Posted on Thursday, January 26 @ 08:31:22 Eastern by
Anthony Severino

Remember all those "It prints money" pictures of Iwata and Miyamoto laughing all the way to the bank? That shit is in the past.
Nintendo vastly undershot estimated losses for the fiscal year... by about 40 billion yen. Nintendo originally forecast a loss of 4.2 billion yen, but has increased expectations expotentially to 45 billion yen.
Nintendo President Saturo Iwata attributes the higher than expected losses to lower than expected hardware sales through the holiday season:
We had higher expectations for the year-end season, but failed to meet them.
This is the first annual loss Nintendo has posted in thirty years.
[Source]
drazze
Joined: Aug 2006
wildmario
Joined: Jan 2007
Chunibrow
Joined: Mar 2010
De-Ting
Joined: Nov 2006
wildmario
Joined: Jan 2007
Rinnon
Joined: Nov 2005
But I digress. I don't think people were hating on Nintendo for making a profitable system, I think they were hating on Nintendo for perceivably abandoning the "core gamer" in favour of the "casual gamer" with their Wii system through the use of gimmicky novelty. I don't think it actually WAS entirely common knowledge that Nintendo was making a profit on it's system sales and MS and Sony were losing. But I could be wrong there.
sliverstorm
Joined: Jun 2007
Of course, both Sony and Microsoft have games as a division of a larger entity--it would be interesting to see how their standalone games departments performed.
wildmario
Joined: Jan 2007
It may have not have been common knowledge that Nintendo sells on a profit, but it was still known enough by many avid gamers. By Nintendo going the casual/family route, Nintendo was also proven right that if they had tried to directly compete against Sony and Microsoft's market, Nintendo would have been whooped again, so they had to do something to make up their shrinking profit margins. I won't go into details on whether or not this was a good thing, but I will say that Nintendo opened up a new can of worms on the casual market for consoles.