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Nintendo has posted its first financial loss in almost 30 years despite huge Wii and DS sale’s.

Posting a net loss of 43.2 billion yen ($533million/£329million) over the last financial year, compared to a net income of 77.6 billion last year things are not looking good for Nintendo . Whilst its certainly a large loss analysts had projected that Nintendo would in fact lose around 65 billion yen over the year, so Nintendo still have cause to celebrate….sort of.

Whilst sales of the new(ish) 3DS are strong, Nintendo have been selling them at a loss in order to entice consumers in. The Wii is looking old fashioned , and with the announcement of the Wii U, its unlikely that Wii sales will increase.

Another issue for Nintendo, a company that have arguably dominated the handheld gaming market for the past 5-10 years, is the rise of the smartphone market. There are so many games available for mobile phones that the market has become saturated with them. Whilst the games on mobile phones are not often to the standard of a Nintendo produced game, they are easier to play for 5-10 mins at a time and whilst on the move. This is where Nintendo will likely feel their losses the most. Gaming on the move is a big thing right now, and its so convenient to play a game for a few minutes on the phone that is always with you rather than take another item to carry for those moments of boredom or time in your life.

Perhaps with the Wii U and the announcement of some triple A title’s Nintendo can pull back their losses by the end of the year.

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