Nintendo Announcing Greater Loss Than Expected For First Half. What Will Wii Do?!
Nintendo is bleeding money out of its orifices. It’s a different concept, because since they launched the Waving Phallus-ii back in 2006 they’ve been printing money just to waste it wiping their cruddy bums on. These days? These days they be spittin’ losses everywhere. Double what was expected. Frowns. Frowns afoot.
Remember the days of Nintendo printing money? Those days are over, apparently. According to Japan’s Nikkei, the Kyoto-based game maker is poised to post huge losses tomorrow.
Profits are supposedly down a staggering ¥100 billion ($1.3 billion), which is twicewhat Nintendo forecast.
The two major culprits are struggling hardware sales and the stubbornly strong Japanese yen. Nintendo makes 80 percent of its profits from foreign sales, and lost a whopping ¥40 billion yen in foreign exchange. That’s $526 million gone right there–poof.
Many Japanese companies have recently been complaining about the strong Japanese yen, threatening to move production abroad. Nintendo, who does not manufacture hardware in Japan, shows just how painful the strong yen is even for those companies who have already moved their manufacturing offshore.
Yet even with these huge losses, Nintendo still expects to turn a profit of ¥35 billion ($460 million), the lowest in the company’s past 27 years and less than the company lost on the exchange rate.
My heart goes out to them. Winky wink wink.