Pokemon too late for Nintendo losses

Posted by Kirstie Brown in Personal Finance on 27 July 2016 - Kirstie is a Senior Credit Analyst at checkmyfile.

Japanese video game group Nintendo has reported a 39 billion yen (£280m) loss as they release figures for the quarter ending on the 30th June 2016. Despite owning a stake in the hugely popular Pokémon Go which has reinvigorated the Pokémon franchise, this success has come too late to prevent a substantial loss for the company. Net sales were cited as $587m which represents a 31% decline in comparison to 2015, when it reported sales of $855m.

Nintendo attributed its massive operating loss partly to a stronger Japanese yen, the appreciation of which caused exchange losses of 35 billion yen. Poor hardware performance also contributed to the troubles experienced by the firm this quarter. The Wii U console sold just 220,000 units worldwide resulting in a 53% year-over-year drop. This means that the company sold less than half as many of these consoles as in the same period a year ago.

Since its release, the total number of these consoles sold is just over 13m, compared with more than 100m for its predecessor, the Nintendo Wii. Software for the Wii U remained fairly flat with 4.6m units being reported for the 2016 period – an increase of 0.1 million from the previous year. Meanwhile, sales for the handheld 3DS dropped by 7% to 940,000 units, however the software fared a little better having risen 7% to 8.5m units off the back of games such as Kirby: Planet Robobot and Fire Emblem Fates: Birthright/Conquest.

Investor focus on the gaming company has been heavy in recent weeks with the recent release of Pokémon Go, with shares having more than doubled since the app was released. Nintendo, a Kyoto based company which has created famed video game characters such as Mario, has seen shares rocket since the app was launched in the U.S., Australia and New Zealand on the 6th July. However, they have re-iterated their message from last week, saying that it wasn’t adjusting its forecast for its current fiscal year even with the success of Pokémon Go. Nintendo currently owns a 32% stake in the Pokémon Company which licenses the franchise, and 13% of Niantic, the game’s developer. Nintendo are behind the Pokémon Go Plus accessory, which will let players know when they have encountered a Pokémon without having to constantly look at their phone, however the device has been delayed until September, which means running a risk of missing out on the current hype surrounding the game.

Despite the poor results so far this year, Nintendo remain confident about the future. The company is pinning its future on the Nintendo NX, the codename for a mysterious new console which is due to be released in March 2017, as well as continuing to develop its own smartphone games. As a gaming sector veteran, Nintendo have been hurt by the rise of smartphones which has caused many gamers to switch from traditional consoles to cheaper, and often free, mobile alternatives. With the scheduled release of the Pokémon Go Plus in September, as well as Pokémon Sun and Moon in November this year, Nintendo are banking on a big second half for its fiscal year.

Check Your Multi-Agency Credit Report

30 Day Free Trial

The Cost of Incorrect Information on Your Credit Report

Your credit file is compiled from a number of different sources, including payment history from each of your lenders (past and present) and public data as reported by local authorities and courts. The majority of people find that everything held about them is correct, but due to the large amount of information being shared, errors in the information reported can happen, which can lead to issues when you go to apply for credit.

Published on 2 Feb 2018 by Tom Blandford

Full Article

Your Guide to Open Banking

On 13 January, the UK banks embarked upon arguably one of the biggest changes to personal finances since the introduction of computers. Open Banking is aiming to make it easier for banks, lenders and consumers to access and share information, with a view to creating new products and opportunities through innovation and increased competition.

Published on 15 Jan 2018 by Jamie Mackenzie Smith

Full Article

HMRC Bans Credit Card Tax Payments

From 13 January 2018, it will no longer be possible for consumers to use a personal credit card to make a payment on HMRC’s Self-Assessment tax portal. Historically, this has been a popular option as it allows what is often a considerable sum to be deferred.

Published on 12 Jan 2018 by Tom Magor

Full Article

How to Get the Best Deal When Buying a New or Used Car

Buying a new car is both exciting and expensive, but if you know where to look and when, you can grab yourself a bargain. If you take a little time to look into finance or loan deals as well, you can bring down the overall costs significantly.

Published on 11 Jan 2018 by Kevin Pearce

Full Article

Are football clubs exploiting their fans

With Premier League teams under huge pressure to remain in the top flight of English football, the amount lavished on transfer fees and player wages have soared in recent years.

Published on 8 Jan 2018 by Sam Twyford

Full Article

What The 2017 Autumn Budget Means For First-Time Buyers

Wednesday’s autumn budget brought great news to would be first-time homeowners: if you’re buying a home up to the value of £300,000, you won’t have to pay stamp duty for the property. This, the Conservative Party estimate, will benefit 80% of first-time buyers, saving them potentially thousands of pounds on the total cost.

Published on 28 Nov 2017 by Jamie Mackenzie Smith

Full Article

Blacklists - Ten things you probably didn't know

1. Blacklists are not unlawful. No lender is compelled by law to give credit or to give any reason when declining credit. Each may consult several sources of information before making a decision, including any form of list that may exist. Any list containing personal data is automatically regulated by the Data Protection Act 1998.

Published on 9 Oct 2017 by Barry Stamp

Full Article

Is a credit building card a good idea

A credit building credit card is most often used by people that are either looking to improve their credit rating or take out their first credit card.

Published on 24 Mar 2017 by Kelly Luff

Full Article

Which Credit Report Information Can Landlords See

Whenever you rent a property, you will be required to pass some checks set by the landlord or letting agent to prove that you will be a good tenant and that you’ll be able to afford to rent the property.

Published on 7 Mar 2017 by Kevin Pearce

Full Article

Impacts of late payment on your credit card agreement

We’ve all done it before – had that mad panic when we’ve forgotten to pay a bill. But what happens if you do forget to pay your credit card by the monthly repayment date?

Published on 20 Feb 2017 by Kelly Luff

Full Article
keyboard_arrow_left

keyboard_arrow_right

We have loads of great customer reviews