Nintendo posts huge operating loss for first half of 2011

As expected, Nintendo has posted a huge net loss of some ¥70.3 billion ($926 million) for the six months to September 30 2011.

Nintendo's official posting has confirmed yesterday's predictions that the company has taken a tumble from its previously strong financial position, though the picture is not quite as gloomy as Japanese newspaper Nikkei had feared.

Nintendo Co Ltd posted the ¥70.3 billion net income loss for March - September 2011, which was worst than it initially forecast and is way down on the ¥2 billion net income loss for the same period last year. Sales can in at ¥215 billion, which is well below firm's half-year forecast of ¥240 billion.

In light of the loss, Nintendo also revised its full-year net income down from a ¥20 billion profit to a ¥20 billion loss. In total, the company shipped 9 million hardware units and more than 73 million software units during the half year.

One of the primary issue for the Japanese company is believed to be the soaring value of the yen, damaging profits repatriated from overseas.

For the period, the firm sold 8.13 million units of 3DS software, and combined sales for its NDS hardware line (DSL, DSi, DSi XL) were 2.58 million units. Combined software units sold for NDS handhelds hit the 28.99 million mark.

Wii moved 3.35 million units for the period, and 36.45 million software units were sold for the system.

The slide denoting consolidated sales units, number of new titles, and unit forecast is posted below.

Figures here are quoted from reports on the investor relations page of Nintendo's website.