Nintendo's announcement of losses for the fiscal year ending March 31 remains shocking, even though we had advance warning in the form of company forecasts. The actual results, with net sales of ¥647 billion ($8 billion!) were ¥12.3 billion lower than forecasted. The full-year loss was 37.3 billion yen ($461.2 million).

Nintendo said its effort to boost 3DS sales was successful, and that software sales were slower than expected in the US and Europe over the holidays. In addition, the reduced selling price of both the Wii and the 3DS, and, of course, the strong yen, contributed to the losses. The 3DS was actually dropped below cost in the 2011 price cut, the financial report reveals.

By the middle of the next fiscal year (the one that started April 1), Nintendo expects to stop selling 3DS below cost - we assume not by raising prices, but by reducing production costs. In addition, it expects to improve its fortunes with New Super Mario Bros. 2, the 3DS Animal Crossing, the new Brain Age game, and an Asian launch of the 3DS. Oh, and, of course, the Wii U.