Japan’s Nintendo increases profit thanks to weak yen

Japan’s Nintendo increases profit thanks to weak yen

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Japan-based game console manufacturer Nintendo on October 30, 2013 said that weak sales of its Wii U console affected its bottom line, however, the company managed to increase its profit in the six months to September 2013, due to a much weaker yen.

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Nintendo said that its net profit for the half-year period was 600 million yen, which means that the company reversed a 28 billion yen loss in 2012, however, the operating loss of 23.3 billion yen still remains for now. The company stated that its weak earnings resulted partly because of high development and marketing costs for the Wii U, but sales of the 3DS console, as well as related game titles turned out to be better.

In order to save sales figures, the company cut prices of both products. Nintendo in a statement said, “The Wii U hardware still has a negative impact on Nintendo’s profits, owing mainly to its markdown in the United States and Europe”. The Wii U was launched late in 2012 and the company hoped at the time that the release would result in huge success, like that of the original Wii console.

This season, the competition is expected to become intense, as Sony will be launching its PlayStation 4 and Microsoft will be launching its Xbox One.

Photo Credits: SB Nation