All Japan news’s two console gaming giants reported weak figures for the quarter and slashed estimations for the full year amid growing competition and increased recovery efforts after this March’s natural disasters which affected consumer confidence.
Sony announced on Thursday a Y15.5 billion ($200 million) loss for the April-June quarter, negatively affected by the disasters, lower TV prices and an online security breach of its PlayStation 3 networking services. The company lowered profit estimations for the full year ending March 2012 to Y60 billion, from Y80 billion.
The profit for the full year would still be good news for Sony, which has finished in the red the last three years. Sony also lowered sales expectations for the full year to Y7.2 trillion, from Y7.5 trillion.
Nintendo, on the other hand, appears to have a much tougher year. It reported a Y25.5 billion ($327 million) loss for the quarter and its shares immediately tumbled 20 percent to a six-year low on the Osaka Stock Exchange, on Friday.
Nintendo decided to cut the price of its 3DS console by 40 percent, starting August 11 in All Japan news and from September in foreign markets. The decision comes less than six months after the console’s launch and analysts think the move may lead to recovered market share but will affect profits even harder.
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