Nintendo is reporting its first annual loss since it became a public company, losses of around $530 million. The company was first publicly listed in 1962, and then joined the Tokyo stock exchange around 1983. The majority of its losses are attributed to price drops and lackluster sales of the Nintendo 3DS, in combination with a low value yen.
After launch sales of the 3DS started to taper off, Nintendo discounted its handheld console up to 40% starting with Japan and then also in North America and Europe. This price drop caused Nintendo to take a loss on each individual 3DS sold. Quickly lowering manufacturing and component costs means this will reverse later in 2012, and Nintendo will profit once more on 3DS hardware sold. This, combined with yen increasing in value, are positive signs for Nintendo.
Analysts are quick to say Nintendo's losses are due to competition from Sony, Microsoft and a growing social and mobile market. Gamers, however, will agree that Nintendo's lineup of 3DS and Wii game releases is lackluster at best.
Nintendo says it will return to profitability in 2013, predicting about $244 million in profits. Gamers respond with, "Show me the Wii U's launch lineup, and then we'll talk."