Pokemon Go fails to lift Nintendo
Video game maker records loss of $232m for the fiscal first quarter through June
Japanese video game maker Nintendo sagged into a loss of 24.53 billion yen (Dh852 million; $232 million) for the fiscal first quarter through June, despite the global success of the “Pokemon Go” augmented reality game.
The result yesterday was worse than the 673 million yen ($6.4 million) profit forecast by analysts surveyed by FactSet. The manufacturer of Super Mario games and the Wii U console had an 8.3 billion yen profit the same quarter a year ago.
The Kyoto-based company’s quarterly sales fell 31 per cent to 61.97 billion yen ($586 million).
Nintendo has warned the Pokemon Go perk will be limited. The Pokemon Co, a Nintendo affiliate, will get licensing fees and other compensation for the mobile game distributed by Niantic Inc, but that won’t have much impact on Nintendo income, according to a company statement last week.
In one disappointment for Pokemon Go fans, Nintendo and Pokemon said yesterday that the release of Pokemon Go Plus is being delayed by two months until September. Pokemon Go Plus is a device that can be used when playing Pokemon Go, which lets players know when Pokemon are around.
Investors
The Pokemon Go game became available after the first quarter ended, anyway, and to play it basically is all free. But some investors are expecting a boost for Nintendo as the Pokemon craze encourages other types of sales, such as games and other content of not just Pokemon but other Nintendo products. Nintendo’s shares have see-sawed since the game’s release earlier this month, as markets flip-flopped between hope and disappointment for the biggest hit in games in years. It closed at 22,305 yen, down 5.5 per cent in Tokyo.
Nintendo’s earnings have suffered from lagging sales of its game consoles, including the Wii U and the 3DS hand-held.