Nintendo Reports First-quarter Loss
Nintendo reported an operating loss in the first quarter, hurt by unfavorable currency rates and slow software sales, although hopes for growth are running high on the worldwide success of Pokemon GO. The firm's first game for smartphones was launched three weeks ago but has already been responsible for a rise of some 50 percent in the company's market value.
Nintendo posted an operating loss of 5.1 billion yen ($49 million) for the April-June quarter, versus a profit of 1.15 billion yen in the same period a year earlier.
Nintendo maintained its outlook for operating profit to climb 37 percent to 45 billion yen in the year ending March. Last week the company said that Pokemon GO would have a limited impact on earnings and that it did not plan to revise its targets for now. Its main source of Pokemon GO income is expected to come from its 32 percent stake in affiliate Pokemon Company which owns the licensing rights.
But the Japanese company also has an undisclosed stake in Niantic - the game's developer which was spun off from Google, and it will sell Pokemon GO Plus - an accessory that alerts players to nearby Pokemon so that they don't have to always be looking at their smartphones.
Nintendo said on Wednesday that the device will be launched in September due to software adjustments.