Nintendo reports its first annual loss in 30 years

According to Develop, Nintendo didn’t make any money last year. The company that blew the casual gamer market wide open with the Wii, that aims its products at prepubescents who manipulate their parents’ spending, the company that owns the Pokemon franchise — recorded a loss of $531 million dollars the financial year ending March 31. I’ll just let that sink in for a moment…

Their year-on-year revenue is down 36%, so no more chucking stacks of money at each other in between meetings.This marks Nintendo’s first annual loss for thirty years, the only time it has accounted a year in the red since it began shipping games consoles.

Not even shifting approximately 13.5 million 3DS units across the period prevented their posting a loss. The company dropped the price of its 3DS systems like a bad blind date to bolster the handheld’s shaky start on the market. That price reduction meant each system sold at a loss, but Nintendo predicts that 3DS will again be selling at a profit-per-unit price by September 2012.

The company declared that it “continues to pursue its basic strategy of ‘gaming population expansion’ by offering compelling products that anyone can enjoy, regardless of age, gender or gaming experience.” Will the Wii U capture the imagination of grandmothers and three-year-olds as the Wii did, or will they continue to look to Zynga and Rovio to satisfy their need for success?

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