Smartphones and tablets hurting Nintendo? Report revealed that Japan’s popular gaming company posted its first ever operating loss this week.
Last month, Apple unveiled its first ever high-definition tablet computer with a 5-megapixel camera, a dual-core CPU and with a quad-core graphics that is reportedly capable of delivering better gaming experience. In fact, Apple’s exec said during the product’s press conference that the new iPad, or the iPad 3, is the perfect gaming device despite the lack of physical controllers, and gamers are reportedly “in love” with it.
Aside from Windows laptops and computers, Apple’s tablet computer is also targeting the lucrative gaming market, which is headed by Japan’s pride, Nintendo. But the bad news came this week from the Mario Bros. maker. According to the New York Times, Nintendo reported on Thursday its first ever operating loss amounting to $460 million for the year ending March 31.
One analyst told the newspaper that smartphones and tablet computers are hurting Nintendo, particularly involving consumer electronics market which is the actual target of Apple’s widely publicized “Post PC” revolution that brags portability, intuitive user interface, and vibrant ecosystem courtesy of the growing applications list featuring high-end games.
Nintendo’s chief, Satoru Iwata, is reportedly not satisfied with the numbers. He specifically mentioned his company’s handheld gaming device, the Nintendo 3DS, despite the continuous price drop just to convince customers to buy one.
The next coming quarters could be more challenging for Nintendo. Apple, according to reports, will introduce a new smartphone before the holiday season, the iPhone 5, while Google Android’s top phone maker, Samsung, is scheduled to unveil its new Samsung Galaxy S3 which will boast a quad-core chip, supporting more games with heavy graphics and special effects.
To protect its business, and also its brand, Nintendo is widely expected to announce its successor to the Wii, the so-called Wii U, which features a tablet controller and according to rumors, Nintendo will launch an app-store like online store that will retail “simple games” and non-gaming apps.
- Nintendo reports first annual operating loss, Apple to blame (tuaw.com)
- Death By A Thousand Cuts: The iPhone Is Killing Nintendo (cultofmac.com)
- Facing new rivals, Nintendo posts first ever loss (business.financialpost.com)
- Hard choices ahead for Nintendo (canada.com)
- Nintendo reports $458-million deficit (windsorstar.com)
- Nintendo announces first loss ever (bizjournals.com)
- Nintendo faces rocketing smartphone gaming pressure (slashgear.com)
- Mobile Devices Inflict First Loss On Nintendo (news.sky.com)
- The iPhone is Killing Nintendo (iphonelife.com)
- Lowered 3DS and Wii pricing decimates Nintendo’s earnings (shortformblog.com)
- Could a 3D iPad succeed where the Nintendo 3DS has failed? (news.cnet.com)
- By the numbers: in portable gaming, Nintendo’s loss is Apple’s gain (theverge.com)
- Nintendo Will Report Its First-Ever Operating Loss Tomorrow (mynintendonews.com)
- Nintendo reports its first anual loss in years (therepublika.com)