For 30 years now, Nintendo, parent company of Redmond-based Nintendo of America, has known one thing: Profit.
But the times, it seems, are officially a-changin'.At the mercy of stagnant sales, a weak economy, and an appreciated yen, the company synonymous with video gaming is drawing up its first yearly profit report ever in the shade of red.
An estimated $264 million loss, Bloomberg reports.
"Nintendo faces a very harsh time now," said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments Ltd., which manages $28 billion of assets from Tokyo. "Competition in the video-game industry is getting severe, and Nintendo must fight for customers who are using smartphones and tablets."
Earlier this year Nintendo slashed prices of its new 3DS portable 3D gaming system from $250 to $170. Some sources reported that the company was losing money on each sale at that point.
And with the majority of Nintendo's income coming from the United States and Europe, the strengthening yen of its Japanese headquarters has driven the reported revenues even lower.
Nintendo now will bank on the recently previewed Wii U home console that's expected in March of next year.
At least after lowering its 2012 profit forecast by a ridiculous 82 percent and cutting costs across the board, the company won't have far to go to get back in the black.