Nintendo Posts Loss, But Drop in GameCube Price Yields Sales11 Oct, 2003 By: Erik Gruenwedel
Citing currency losses and sluggish sales, video game manufacturer Nintendo Co. for the first time announced it would post a six-month net loss of 3 billion yen ($27 million) for the period from April to September, according to Reuters in Japan.
The Tokyo-based maker of the GameCube console and Game Boy Advance handheld device predicted in May a net profit of 15 billion yen ($135 million).
Analysts downplayed the news, claiming the bulk of Nintendo's dollar-based assets suffered largely due to a burgeoning yen.
Nintendo, in a statement, said the losses “are only on paper” and were due to “drastic fluctuations in currency exchange rates.” The company noted sales would improve with coming titles Mario Kart: Double Dash!!, Mario Party 5, Pok?mon Colosseum and Super Mario Advance 4: Super Mario Brothers 3.
Last month, Nintendo of America dropped the GameCube price to $99, $80 below competing consoles PlayStation 2 and Xbox. The company said it sold more than 61,000 GameCube units in the week following the price reduction. Analysts remain unsure whether the price drop will help Nintendo reach projected year-end unit sales of 6 million.