Not all fun and games anymore
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Games manufacturing giants running out of free lives?
Big names in the gaming industry seem to be in trouble if the latest financial quarterly statistics are to be believed.
The last quarter saw Sony report major losses, while rivals Nintendo were cautious about predictions for the coming year.
Sony blamed their poor results on financial disruptions along with the stronger yen, as well as a lack of demand for their products.
Sales of Nintendo’s Wii games console, as well as its DS handheld game player, seem to have been the tourniquet against a major loss for the company.
Strong sales have offered some stability in times of trouble, with a reported 21 per cent rise in profit over the October-December period of 2008.
However, the company lowered its forecast of profit for the first quarter of 2009 while targets for Wii sales were also slightly lowered.
KBC Securities’ Hiroshi Kamide commented on Nintendo’s position: “It will be a major shock for Nintendo bulls out there if they are reducing Wii unit guidance because people expect this to go up.”
While Nintendo may be reporting a slump, the company’s forecast of an operating profit of ¥530 billion ($5.9 billion) would still be a record figure. By contrast, Sony is facing its biggest recorded operating loss in a period of 14 years.
Nintendo’s Wii has been the success story of the past couple of years. The revolutionary console has outperformed both Sony’s PlayStation3 and Microsoft’s Xbox 360 since its launch in 2006. The innovative interactive gameplay coupled with ease of use proved to be a major winner for the company.
Can the once strong Sony stand up and face the future with confidence? 2009 certainly looks bleak for Sony with a forecast operating loss of ¥260 billion ($2.9 billion)till March.
Last year saw the company recorded a profit of ¥475billion, a big difference from the company’s current stance. Whether it can once more regain its former position as leader in the cut-throat digital world, remains to be seen.
