Latest bad news for Nintendo comes with the revised sales, where it faces the first annual loss in more than three decades. This Kyoto-based videogame maker reduced its full-year sales point of view for a second quarter.
Nintendo ha reduced the sales forecast for its novel Wii-U console, but still hopes to make an annual profit. This view can be attributed to the weak yen. After the disappointing sales, it has forecasted that it will sell only four million Wii-Us in the year up to March, down 27% from its preceding forecast.
The results that have arrived after end of trading on the Tokyo Stock Exchange do not speak well for the financial condition of the company. This shock is also mixed with an overall operating loss of 20bn yen for the year. Earlier, it had anticipated a 20bn-yen operating profit. Financial experts are hoping to have atleast 12bn-yen operating profit on average.
The firm has increased its annual net profit forecast to 14bn yen. All thanks goes to its failing home currency. Last year, it had incurred a loss of 43bn yen. Weaken currency has provided two-pronged benefit for the company. Firstly, it has lead to growth in the value of its foreign currency resources in short-term and secondly, it overturned its stable loss of price competitiveness against foreign competitors in the longer-term.
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