Maker of games console, Nintendo is posting its first loss in two years as interest in its DS handheld player dropped to the same levels as interest in the philosophy of Ludwig Wittgenstein among Apple fanboys.
The outfit, which was making cash hand over fist a copy of years ago with its daftly named Wii console has been suffering a bit from the stronger yen. This has slashed the value of overseas earnings.
It lost $289 million in the three months ended June, and this compares with about the same level of profit a year earlier.
DS sales plunged by a third in the US last month, mostly because games developers could not be bothered writing anything for its platforms. Nintendo only released 168 titles for the handheld player in the period, compared with 278 games a year earlier.
President Satoru Iwata is betting the farm on a 3-D model of the DS and a heart-rate-tracking “Vitality Sensor” accessory for the Wii console this year to pull the outfit out of the poo.
To be fair, a lot of Nintendo’s problems are not of its own making. It made a fortune flogging stuff to the EU and US only to suffer when the currency rates for these regions fell.
First-quarter sales of DS hardware dropped half to 3.15 million players, while those of software dropped 23 percent to 22.4 million units, the company said.
But its woes could become more woeful, with scattered woe turning into heavy showers of doom next year. Not only has Sony pulled its socks up a bit on the PS3, Microsoft is set to release its Kinnect controller which makes Nintendo's Wii look positively steam powered.