Despite being best known right now for one of the most successful games in history, Nintendo has announced an operating loss for the period from April to June.
That is due to the strong Japanese currency as Nintendo makes nearly three quarters of its sales overseas, and also because of weak demand for its traditional games consoles.
It posted an operating loss of 5.1 billion yen (43.8 million euros) for the 2nd quarter of the year. That compares with a profit of 1.15 billion yen in the same period a year earlier.
Even amid hopes for long-term profits from Pokemon GO the company said software issues mean it will have to delay the launch of a key accessory until September.
That accessory – Pokemon GO Plus – alerts players to nearby Pokemon so that they don’t have to always be looking at their smartphones.
How much the company can make from the hugely popular game will become clear next quarter when it announces results for the period since Pokemon GO’s release.
Its main source of Pokemon GO income is set to come from its 32 percent stake in Pokemon Company which owns the licensing rights.
Its shares have shot up in recent weeks on hopes for Nintendo to reap rewards from other character franchises like Super Mario and Zelda as it moves away from protecting its console business at all costs and delves deeper into mobile gaming.
They lost value earlier this week when Nintendo pointed out the smash-hit game would have only “limited” benefit for its earnings and fell further on Wednesday on word of the delay in the release of Pokemon GO Plus.
Crazy #Nintendo #share movements! From
Bloomberg</a> <a href="https://t.co/EDazWGJGGE">https://t.co/EDazWGJGGE</a> <a href="https://t.co/M9WxRQCtMS">pic.twitter.com/M9WxRQCtMS</a></p>— Hannes Bernstein (HannesBernstein) July 27, 2016
“I believe Nintendo can leverage the success of Pokemon GO, bringing the game to its consoles or introducing other characters to similar games,” said Masayuki Otani, chief market analyst at Securities Japan. “This is just the beginning for Nintendo.”
The game, launched on July 6, is now available in nearly 40 countries. Research firm Sensor Tower estimates it has been installed more than 75 million times across Apple and Google platforms globally.
Nintendo is also to launch a new console – the NX – in March 2017.
Here's the latest rumor about Nintendo's next console https://t.co/B07p0taMKI— TIME.com (@TIME) July 27, 2016