Nintendo may postpone the release of Pokémon Go accessories as deficit in first-quarter earning season
- Category: Uncategorised
- Published on Thursday, 28 July 2016 09:45
- Written by Super User
- Hits: 1200
It is reported that Nintendo suffered great deficit than expected in the first-quarter earning season as the poor performance of Wii U. As a result, Nintendo plans to postpone the release of Pokémon Go accessories.
In the first-quarter earning season by June 30, Nintendo encountered $232 million deficit, performing weaker than the same quarter a year earlier.
According to the statistics of Bloomberg made, marketing analysts predicted it would lose 3.4 billion yen in first-quarter earning season, excluding the fluctuation in exchange rate. Its operating deficit would be 5.1 billion yen. But Nintendo still keep the earning expectation at 35 billion yen.
Nintendo has been struggling in finding new users of traditional console and handhold game player.
Nintendo teamed up with other two companies to release Pokémon Go which made a hit. It realized its shortcomings and attempted to explore in mobile games field. The uncertainty of Pokémon Go dividends made Nintendo concerned moer aspects. It announced on Wednesday that Nintendo would postpone the release of Go Plus till September, an accessory made for Pokémon Go.
Tomoaki Kawasaki, analyst of Iwai Cosmo Securities Co., claimed the attention of market has been switched to Pokémon Go from short-term profit.
Mitsubishi UFJ Morgan Stanley Securities Co indicated Pokémon Go Plus bring 45 billion yen in revenue in this fiscal year.
The surge of yen let Nintendo lose a great profit in oversea. Among its revenue sources, three fourths are from oversea markets. If the surge of yen, traded 110 yen against a dollar, and 125 yen against an Euro, Nintendo will suffer 35 billion yen deficit.
Though Nintendo holds some share of Niantic and the latter share price increased by 100%, Nintendo still has limitation rights of Pokémon Go. Nintendo suffered share price decline since last Friday.
2016 is an important year to Nintendo to explore in mobile game industry. It plants to release 5 mobile games by March, 2017, including two apps will be releasing by the end of this year.
In addition, it is about to release next generation of NX in March, 2017.