Nintendo Reveals $457 Million Loss for Fiscal Year

May 7, 2014 - GamePolitics Staff

It's not a good time at Nintendo HQ this week. Today the maker of Wii U and 3DS revealed a 46.4 billion yen ($457 million) loss for its fiscal year ending March 31. This is the third year of annual operating losses in a row for the company.

The Wii U sold 2.72 million units over the last 12 months. Lifetime sales stand at 6.17 million units. That number is pretty disappointing for Nintendo if you consider how much longer it has been on the market. Sony's PS4, for example, has sold 7 million units since its released in Q4 2013.

"The Wii U hardware still has a negative impact on Nintendo’s profits owing mainly to its markdown in the United States and Europe," Nintendo said in its financial statement, "and unit sales of software, which has high profit margins, did not grow sufficiently."

Super Mario 3D World, New Super Mario Bros. U, and New Super Luigi U, were all cited as million-seller titles, with total software sales hitting 18.86 million units overall.

The 3DS continues to offset those bad Wii U sales numbers. 3DS hardware sales reached 12.24 million, and software 67.89 million. Lifetime sales for the 3DS now stand at an impressive 43 million units.

Pokemon X/Y proved to the be the most popular 3DS game of the year, selling 12.26 million. Animal Crossing: New Leaf had cumulative sales of 7.66 million. Luigi’s Mansion: Dark Moon, The Legend of Zelda: A Link Between Worlds, and Mario & Luigi: Dream Team sold more than two million units during the year.

Looking ahead, Nintendo predicts an operating profit of 40 billion yen ($394 million) for the year ending March 2015. It also expects to increase Wii U sales in the year ahead; the company is forecasting 3.6 million in Wii U sales for the year ending March 31st 2015. It expects 3DS sales to decline slightly to 12 million units.

Source: GameSpot


Comments

Re: Nintendo Reveals $457 Million Loss for FY 2013

And Iwata still won't retire.

Re: Nintendo Reveals $457 Million Loss for FY 2013

Taking a risk may fail, but not taking a risk will guarantee you will fail. the wiiu was a conservative idea from the get go. I wish Nintendo would do that fusion rumor, but I doubt it. For those that do not know, the rumor is that they are building a handheld that could plug in to a docking station that would add more processing power, ram, and a better gpu to turn it in to a home console. 

Re: Nintendo Reveals $457 Million Loss for FY 2013

I don't know, the controller gimmick was certainly a risk. The rest of the console was played conservatively, certainly, but the controller is a different matter. Of course, that particular risk didn't pay off overall. It has a few uses on a handful of games, but beyond that it's pretty much only good for off-TV play, which doesn't motivate system sales.

Re: Nintendo Reveals $457 Million Loss for FY 2013

It's time for Nintendo to make like Sega and get out of the hardware business.

Re: Nintendo Reveals $457 Million Loss for FY 2013

No, it's not.  Sega didn't have the money to support a flagging console and would have went out of business if it tried.  Nintendo has enough bank to afford several underperforming consoles.  Abandoning the console space would be foolhardy.

 

Andrew Eisen

Re: Nintendo Reveals $457 Million Loss for FY 2013

Fanboyism is just the worst ,especially when all someone wants is for everything else to fail.

Re: Nintendo Reveals $457 Million Loss for FY 2013

Because less competition is always a good thing! /s

Re: Nintendo Reveals $457 Million Loss for FY 2013

Home consoles probably, but handhelds they are dominating.  

Re: Nintendo Reveals $457 Million Loss for FY 2013

Shame to see it.

 

That said, I feel it's still not time to hit the panic button. The Wii U is floundering, but let's not forget that Ninty supposedly has enormous cash reserves.

So much of the issues they face stem from the fact that they're such a conservative company and have been slow to adopt a robust online architecture and service platform for their products, but at the same time it's comforting to know that they're less inclined to kneejerk into overcorrecting and truly sinking themselves, with half-baked moves like what happened with the Sega 32x and Saturn.

 

 
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