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 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.
“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith
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
Finished Apple Watch Expected to be Showcased at"Spring Forward" Mar. 9 Event
February 26, 2015, 12:17 PM
Google Preps Pixel 2 ChromeBook, New X Server Replacement "Freon"
February 24, 2015, 11:12 PM
Report: Samsung Semiconductor Bounces Back w/ iPhone SoC and Memory Orders
February 24, 2015, 1:40 PM
Comcast Borrows Apple's Branding Flourishes for Its Remotes
February 24, 2015, 11:32 AM
NVIDIA Bows to Outraged Overclockers, Will Restore Feature in Upcoming Driver
February 23, 2015, 12:30 PM
BlackBerry Wages Legal War Against Ryan Seacrest's Typo 2 iPhone Keyboard
February 18, 2015, 5:24 PM
Most Popular Articles
Outbreak of Deadly Superbug at Californian Hospital Kills 2
February 20, 2015, 2:11 AM
Modern Glass (Windows 7 Aero Glass + Modern UI) Style is Coming to Windows 10
February 19, 2015, 1:05 PM
EDITORIAL: Board Wants to Anoint America World Police w/ Global Warrant Power
February 20, 2015, 9:10 AM
Quick Note: Microsoft Gives Dropbox Users Extra 100 GB of Free OneDrive Storage
February 20, 2015, 9:48 AM
DARPA Awards Boeing Contract to Test Jet Based Satellite Launches
February 19, 2015, 11:30 AM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information