Bad news for Nintendo. As the world's largest gaming company, Nintendo has been dowsed with the ice-cold reality of facing a crashing $264 million net loss for this year. This is its first annual loss in 30 years and it is not going to be pretty.
The decline of Nintendo?
With grim financial reports last quarter, Nintendo has been attempting to ward off the inevitable by cutting prices on its newest handheld console, the 3DS. And though 3DS sales have improved since its 40 percent cut back in August, Nintendo's forecasted net loss of 20 billion yen casts a large shadow over the company's future.
Speculation surrounding Nintendo's downfall has attributed mobile gaming, spurred on by Apple's iPhone and iPad, as a cause for Nintendo's failure. Nintendo's Wii and 3DS have generally catered to the casual gaming market. With the growth of iOS gaming, the casual market has shifted its attention towards Apple, leaving Nintendo behind with damaging losses.
It seems not even hardcore Nintendo fans can save Nintendo this time. The trend towards accessible apps provides a serious threat to video-game companies invested in handheld systems; direct competition with the iOS juggernaut appears futile and unprofitable.
Does Nintendo's financial reports indicate the decline of handheld consoles under the success of gaming apps provided by mobile devices? Or is Nintendo's loss just a bleak outcome of the 3D fad? Or maybe with Japan's rising yen, Nintendo's profits have suffered due to the foreign exchange losses, provided most of its revenue come from the West.
Whatever the case may be, Nintendo has a few promising projects that might just help provide some financial respite for the company. The future of Nintendo rests on projects like next-generation console the Wii U and The Legend of Zelda.
Zelda. You know what, there is a chance Zelda, Link and Robin Williams may save Nintendo with the much anticipated The Legend of Zelda: Skyward Sword.
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