Nintendo Misses Profit Expectations by Half, Sells Only 3.45 Million Wii Us for Fiscal Year
April 24, 2013 12:24 PM
comment(s) - last by
Nintendo expects a profit surge for March 31, 2014 thanks to new games for the Wii U
Nintendo was betting on
the Wii U
for help in the sales department, but it looks like the new console has disappointed so far -- and it shows in the company's latest earnings report.
For the fiscal year ended March 31, Nintendo posted a year-over-year sales drop of 1.9 percent to 635.4 billion yen ($6.4 billion USD). The company was originally hoping for 670 billion yen.
Nintendo was able to report
a small profit
of 7 billion yen, but that's only half of the 14 billion yen that it had previously predicted. The gaming company also saw a wider operating loss than expected, coming in at 36.4 billion yen instead of the projected 20 billion yen.
Many are blaming the Wii U gaming console for Nintendo's lower-than-expected figures. Only 3.45 million Wii Us were sold worldwide for the last fiscal year, which just missed Nintendo's projection of 4 million sales. About 13.42 million units of software sold for the new console as well. The company sold 3.98 million original Wiis and 13.95 million 3DS handheld units.
"For the 'Wii U' system, launched in the fiscal year ended March 31, 2013, there were some delays in software development that resulted in intervals between new software title releases at the early stage of this year," said Nintendo. "Taking this into consideration, for the fiscal year ending March 31, 2014, we plan to concentrate on proactively releasing key Nintendo titles from the second half of this year through next year in order to regain momentum for the platform.
"We also strive to reduce costs to improve hardware profitability."
Nintendo expects a profit surge from the 7 billion yen this year to 55 billion yen next year (March 31, 2014) thanks to new games for the Wii U.
In January of this year, Nintendo had announced that it was
cutting its Wii U sales targets
from 5.5 million to 4 million by March 2013. At that time, Nintendo President Satoru Iwata explained that Wii U sales were lower because of the popularity of mobile devices for gaming and the fact that this is the first time Nintendo has released two versions of a console at once.
The Wii U
launched November 18, 2012
. The Basic Set ($299.99) features 8 GB HDD, a Wii U Pad controller and it in comes in white. The Deluxe model ($349.99), on the other hand, offers 32 GB HDD, a Wii U Pad controller, power cradles for the Wii U Pad, an HDMI cable and it comes in black.
In addition to an earnings report, Nintendo has also announced that Iwata will become the new Nintendo of America CEO. He is replacing Tatsumi Kimishima, who will now become the general manager within parent company Nintendo Co. Ltd. Nintendo said the reason for this is to streamline its international business. Reggie Fils-Aime, the president and COO for Nintendo North America, will remain in his current position.
This article is over a month old, voting and posting comments is disabled
RE: Lesson as old as time
4/24/2013 12:47:38 PM
Exactly why I didn't buy it. No Mariokart? Super Smash Bros? Mario Sunshine? etc.. Big hits for my kids. They had no interest so it didn't go under the tree at Xmas.
RE: Lesson as old as time
4/24/2013 9:24:57 PM
Pretty much the software is lacking. They apparently didn't learn from previous experience. This time I don't feel bad about some of you bashing the system.
“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls
Nintendo Profitable Again, Cuts Wii U/3DS Sales Targets
January 30, 2013, 3:06 PM
Nintendo: Wii U Sales "Not Bad"
January 7, 2013, 11:00 AM
Nintendo: Wii U to Launch Nov. 18 for $299/$349
September 13, 2012, 5:17 PM
India Could Rock Google With Its Biggest Antitrust Fine Yet -- $5B USD
March 10, 2014, 8:12 PM
Apple Releases iOS 7.1, The First Major Update to Its "Rethought" Mobile OS
March 10, 2014, 1:52 PM
BlackBerry CEO Jokes that iPhone Users are "Wall Huggers"
March 10, 2014, 12:20 PM
Average Mobile Phone Bill in U.S. is Growing Despite Competition
March 10, 2014, 10:25 AM
Aussie Tried to Drop Drugs into a Prison Using an Aerial Drone
March 10, 2014, 9:32 AM
Quick Note: New Generation HTC One (M8) Photos Turn Up on Weibo
March 10, 2014, 9:04 AM
Most Popular Articles
Bitcoin King Pt. II: Mt. Gox's Dictator Karpelès Proves Tragically Flawed
March 7, 2014, 1:12 PM
Bitcoin King: Mt. Gox CEO Mark Karpelès' History of Arrests, Firings
March 5, 2014, 9:05 AM
USAF Moves Forward With Long Range Bomber Program Despite Budget Crunch
March 4, 2014, 9:44 AM
Windows 8.1 Update 1 Leaked Early
March 7, 2014, 9:30 AM
Apple Won't Let UK Sons Unlock Their Deceased Mother's iPad
March 6, 2014, 12:44 PM
Latest Blog Posts
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information