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Nintendo Posts Annual Loss Following Below-Expectation Hardware Sales

by Tom Malina - May 7, 2014, 8:18 pm PDT
Total comments: 14 Source: Nintendo

The publisher targets a profit for next fiscal year as it rethinks the strategy for the struggling Wii U.

Nintendo has announced an annual net loss of 23.2 billion yen ($229 million, or £134 million) for the fiscal year ending March 31, 2014, citing the lower-than-expected worldwide sales of both Wii U and 3DS, in addition to the retail markdown on Wii U in various territories, as the main factors.

The Wii U shifted just 2.72 million units over the last year, still missing the reduced forecasts Nintendo made in January, which means that lifetime-to-date sales since the system's launch in November 2012 sit at 6.1 million. This was compounded further by disappointing yearly software sales of 18.86 million units, in spite of titles like Super Mario 3D World, New Super Luigi U and The Legend of Zelda: The Wind Waker HD all selling over a million copies.

The Nintendo 3DS fared much better despite also falling short of the company's targets, moving 12.24 million units in the last 12 months, taking the lifetime total up to 43.3 million. Bright spots on the 3DS software sales front include Pokémon X and Y, which sold 12.26 million copies, and Animal Crossing: New Leaf, which pushed 7.66 million copies, while Luigi's Mansion: Dark Moon, The Legend of Zelda: A Link Between Worlds and Mario and Luigi: Dream Team all crossed 2 million in sales.

In response to these figures - the second net loss in the last three years for the publisher - Nintendo is forecasting a profit for the coming fiscal year, predicting 12 million sales for 3DS and 3.6 million sales for Wii U. Referring to the latter system, the company said it would make efforts to "enrich the value of the Wii U GamePad" by releasing more software that took advantage of the controller, such as games using NFC technology and Nintendo DS releases on Virtual Console. However, the 3DS platform was identified as the primary area where Nintendo would "strive to generate robust profits" as it looks to build upon the established install base with further software sales.

Talkback

ToraMay 07, 2014

I think the problem is, they keep having expectations for themselves.  Anyone with a brain knows that Nintendo is going down a scary road to oblivion.  Mark my words.  It will only be a matter of time before Mario's on android and IOS.

BlackNMild2k1May 07, 2014

On the bright side, the attach rate is 3:1 for games sold vs install base for the year.
Not everything is bad news.

the asylumMay 07, 2014

Smash 4 may get more U's moving, but 3 million? HAH. Unless the Dynasty Warriors/Zelda hybrid really REALLY impresses, 3 mil is a delusion, not a goal.

And let's not kid ourselves, Bayonetta 2 won't help. The first one struggled to sell on the PS3/360, and it was hyped to hell and back nonstop.

Nintendo admitted their WiiU pillars were Smash and Mario Kart. Time to see if they have a GTAV level of marketing in them.

Ian SaneMay 08, 2014

Quote from: Tora

I think the problem is, they keep having expectations for themselves.

I don't know if you were trying to funny but I laughed at this.  That's such a witty mean thing to say about someone. :)

nickmitchMay 08, 2014

I wonder if the bump in their Construction-In-Progress has to do with building a plant to make the NFC figurines.

Pixelated PixiesMay 08, 2014

Quote from: nickmitch

I wonder if the bump in their Construction-In-Progress has to do with building a plant to make the NFC figurines.

So...figures caused these figures?

sorry

nickmitchMay 08, 2014

It figures you would make that joke.

Pixelated PixiesMay 08, 2014

Quote from: nickmitch

It figures you would make that joke.

How you figure that?

I think you can now say there's historical evidence that Nintendo has no capability to forecast their sales.  Coming from Supply Management, I can attest that forecasting is an educated guess at best, but if that's the case, then Nintendo's forecasters have been sleeping in class.

I hesitate to think Nintendo will actually reach profitability next year, unless they expect to reach it by cutting cost above all else.

nickmitchMay 09, 2014

Quote from: Pixelated

Quote from: nickmitch

It figures you would make that joke.

How you figure that?

You figure it out.

Pixelated PixiesMay 09, 2014

Ha!

MiyamotoMay 09, 2014

Time for Iwata to go. He has had plenty of chances. The warning signs have been there for a long time. The company is as greedy, lazy and cynical as it has ever been. A change at the top and a change of approach starting with putting the wants of consumers before the wants of shareholders.



Pixelated PixiesMay 10, 2014

Quote from: Miyamoto

Time for Iwata to go. He has had plenty of chances.

- Miyamoto

Someone is hoping for a promotion.

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