Nintendo posts a loss of €49m

It still hopes that the Pokemon Go phenomenon can help to turn things around...

Nintendo posts a loss of €49m

A picture of the video game character Mario is shown in the Nintendo booth at the Game Developers Conference | Photo: PA Images

Nintendo recorded an operating loss of 5.13bn yen (€44.2bn) during its first fiscal quarter of 2016.

Sales of its Wii U console fell by 53% to 220,000 units. 12 months ago the Japanese firm recorded its best first-quarter since 2012. After shifting some 13 million units the Wii U has been the worst performing console in the history of the company.

The firm's outlook has been buoyed by the release of Pokemon Go. After a boom in demand for Nintendo stock following the global success of the game - Nintendo stocks dived when the company indicated that the success of the game will not be reflected in Nintendo's bottom line.

Shares in the gaming giant have plummeted 17% in a single day after Nintendo released a statement after trading closed on Friday of last week saying that the economic impact Pokemon Go's success will have on them will be "limited."

This fall came after Nintendo's share value had more than doubled in recent weeks because of the wild success of the Pokemon app.

But now the market has come to realise that Nintendo's part in the game is minimal. Nintendo has about a 13% stake in the game. While it owns 32% of the Pokemon Company, its share of the games actual developer, Niantic, is much smaller.

The company will hope to excite gamers with the release of the new Nintendo NX console -  but that's not due to be released until early 2017.

In the coming months, the company will release its second and third mobile games, "Fire Emblem" and "Animal Crossing." Neither are expected to have the universal appeal of Pokemon Go, but their performance will be closely watched by investors.

news cards