Nintendo lost money. It is the first time in recent memory that it has done so. Some of the blame falls on the value of the yen. But, more important, sales of its Wii console and newer 3DS handheld device fell. Reuters reported that
The operating loss of 37.3 billion yen in the year that ended March 31 compared with a consensus estimate of a 41.4 billion yen loss, based on forecasts by 20 analysts surveyed by Thomson Reuters I/B/E/S.
The real threat to Nintendo’s ongoing profitability is rivals Sony (NYSE: SNE) and Microsoft (NASDAQ: MSFT) which continue to have sales successes with their respective PS3 and Xbox 360 products. And, all three face competition from the migration of games to smartphones, which is a trend none of the three has been able to combat.