Nintendo (OTC: NTDOY) posted earnings that missed estimates, with a net loss of $534.6 million after $8 billion in revenue. Last year, the company posted $12.6 billion in revenue with a profit of $960 million, though they are predicting $429 million profit next year, according to Tech Crunch.
The loss is likely a result of the increasing number of games on iOS products giving access to online-hosted games. Naoki Fujiwara of Shinkin Asset Management said, "Nintendo isn't exempt from the impact of smartphones and tablets. The company's performance will be determined by the 3DS, which will probably be profitable this year, and new products as well as the currency." Nintendo President Satoru Iwata cited disappointing sales of the 3DS handheld console for the loss.
Nintendo is combating the competition with a new version of the Wii, called the Wii U. It's competing against an increasing number of games available for downloadon the iOS devices, which are often free. In addition, Microsoft's Xbox Kinect has provided a direct competition to the Nintendo Wii's full-body controlling.
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