The Japanese consumer electronics company Nintendo reported a loss of 23.2 billion yen on May 7, 2014. The latest figure reversed a year-earlier profit as disappointing sales of its Wii U console during Christmas 2013 affected the final results. The console’s decreasing demand led to Nintendo moving 2.72 million units internationally during 2013, which is less than a third of its previous prediction for 9 million.
The popular console manufacturer stated that the net loss reversed its net profit of 7.1 billion yen in 2013 on sales of 571.7 billion yen, which were decreased 10%. Despite that, the Japanese company is hoping to make a comeback with a 20 billion yen net profit in the current financial year. In recent times, the console manufacturer has experienced a downfall when compared to its main rivals like Sony and Microsoft.
Nintendo said that the sales were not as expected and added that price cuts, as well as slower demand for the Wii’s high margin software affected the results. Earlier, Nintendo blamed poor earnings on high development and marketing costs for the Wii U, which was launched in late 2012.
Meanwhile, sales of the 3DS handheld console have had more success, but the company reduced prices on both consoles in order to increase sales.
Photo Credits: CDN