Another bump in Nintendo’s road

Things don’t seem to be going too well for the japanese company. Of course, Wii and DS’s generations gave us the impression that almost everything was all fun and giggles to Nintendo; top seller in both with a big acceptance of their products and big fat profits.

At the last E3 they shown off their next gen console, the Wii U which appeared to take the breath away from developers. However,  most people didn’t feel the same excitement as developers  and Nintendo’s shares dropped almost 8% just after the announcement. Yesterday the company released their quarterly financial results for the three months ending in June 2011 and again things didn’t look good at all with the company operating at a loss of 25.5 billion yen (about $325 million), its worst profit margin in 27 years. Also, net sales are down fifty percent from the same period last year, totaling just under 94 billion yen.

If it was because of this profit drop or because Sony’s PSVita announce for the same $259.00 we can’t say for now, but also yesterday Nintendo announced a $80.oo cut at 3DS’s price, which is $249.90 and will be available for $169.90 next month. Analysts say that, sure, Sony pushed Nintendo in the reduction direction, however it wasn’t out of fear. “I would not call it desperation but more a very aggressive defensive action by the market leader to hold on to market position.”

Never the less, all signs point that the company war going to sell the portable at a loss. Today, company’s president, Satoru Iwata, explained how the decrease was possible without making more losses: a major salary cut to all Nintendo high positions. That cut will be of 50% for Iwata, 30% for company directors and  20% for executives. All those bad news next to self-sacrifice announces makes everything too similar to a Dragon Ball Z episode so that’s how I’m ending this: Will Nintendo 3DS sell as expected? Will Iwata please both buyers and investors? Will Nintendo be able to win this console fight? Stay tuned to Game Comments to know how this fight unveils.

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