Nintendo Misses Profit Expectations by Half, Sells Only 3.45 Million Wii Us for Fiscal Year
April 24, 2013 12:24 PM
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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.
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RE: Lesson as old as time
4/24/2013 3:13:44 PM
I bought the Wii U when it launched with the expectation that there would be a steady flow of games released for it over the coming months. I don't think a single title has been added. Extremely disappointing.
RE: Lesson as old as time
4/24/2013 5:40:18 PM
I really don't get why people do this. You don't need to own the hardware, you just need to play games. If there are no games, why buy the hardware?
Last time I was almost bitten by this was when UT3 launched. I almost bought a copy because they promised a native Linux client. Good thing I waited for them to make good on their promise.
RE: Lesson as old as time
4/24/2013 8:56:39 PM
Yeah. That's a good way to end up paying too much before the inevitable price drop. When I bought my 3DS I waited until the price drop was announced along with the Ambassador Program. I bought it just before the price drop, registered to be eligible for Ambassador status, then used my 30-day price-protection to get 110% of the difference back, and settled in with all the Ambassador perks and a late-comer price. *DEAL WITH IT*
I'm been a life-long Nintendo consumer whore since the NES days but even I skipped the 3DS and Wii U launches.
"It seems as though my state-funded math degree has failed me. Let the lashings commence." -- DailyTech Editor-in-Chief Kristopher Kubicki
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