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Nintendo announces $230 million loss, Wii U and 3DS sales down

by on May 8, 2014
 

Japan Nintendo

Nintendo has just announced their financial results for the last fiscal year. While the company made ¥571 billion ($5.62 billion) in net sales, it still fell short of the ¥590 billion ($5.81 billion) projected in January. While the ¥23.22 billion ($230 million) net loss is better than the expected ¥25 billion ($250 million) loss, the company had reported a ¥7.10 billion ($70 million) net income the previous year. Operating losses were higher due to inventory write-downs and research and development costs, along with lower hardware sales and weaker than expected Wii U software sales.

Only five game titles have sold over a million units on the Wii U, including Super Mario 3D World, New Super Mario Bros. U, and New Super Luigi U. The console has also sold only 2.72 million systems in its first full year on store shelves, which is a sharp decline from the 3.45 million sold during its first four months which fell in the previous fiscal year. However, Nintendo expects to sell 3.6 million Wii Us for the current fiscal year, expecting Mario Kart 8 and the new Super Smash Bros. to help move units.

While the 3DS is currently selling much better than its console counterpart, sales for the handheld system are also down. Even with the release of the XL and 2DS models, the 3DS sold only 12.24 million systems versus the 13.95 million sold during the previous fiscal year. Nintendo expects the downward trend to continue and to sell only 12 million units by the next year. However, 3DS software sales are topping the charts, with Pokemon X and Y selling 12.26 million copies combined and Animal Crossing: New Leaf selling 7.66 million copies total, in addition to Luigi’s Mansion: Dark Moon, The Legend of Zelda: A Link Between Worlds, and Mario & Luigi: Dream Team selling 2 million copies each.

Nintendo is predicting sales to go up by 3.2 percent to ¥590 billion ($5.81 billion), with a net income of ¥20 billion ($200 million) for the current fiscal year.

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