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Nintendo Returns to Profitability Despite Missing Wii U Sales Goal

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News Posted: Wed, Apr 24 2013 9:26 AM
Nintendo Co. on Wednesday is back in black after reporting its first full-year loss in the history of the company last year. This time around, Nintendo's financial report reflects a profit of 7.1 billion yen (around $71.7 million) for its fiscal year ended in March, up from a loss of 43.2 billion yen ($436 million) in the prior year. At the same time, Nintendo posted an operating loss of 36.4 billion yen, or $366 million.

What those numbers reveal is that Nintendo benefited from a recent weakening of the yen, which hit a four-year low earlier this month, ultimately helping the company squeeze out a profit.

Wii U

As for hardware sales, Nintendo sold 3.46 million Wii U consoles around the globe last year. Nintendo had set a goal to sell 4 million units after previously lowering a forecast of 5.5 million Wii U sales. Despite Nintendo's best efforts, gamers just aren't flocking to its latest generation console the way they did with the original Wii. Even more concerning for Nintendo is that Wii U sales seemed to have stalled after selling 3.06 million from launch through last December. It's hard to see sales gaining much momentum with Microsoft's Xbox 720 and Sony's PlayStation 4 headed to retail by the end of the year.

Nintendo's doing a better job moving its 3DS handheld console. Global sales of 3DS hardware and software totaled 13.95 million units and 49.61 million units, respectively, Nintendo reports. The New Super Marios Bros. 2 title accounted for 6.42 million of those software unit sales.
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sevags replied on Wed, Apr 24 2013 3:42 PM

Nintendo needs to stop making hardware (well maybe they can continue making their portable systems) and start making games for other consoles. Imagine what Mario would look like on a PS4 or Xbox 720.... much much better than on decade old updated gamecube hardware.

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Clixxer replied on Wed, Apr 24 2013 5:13 PM

Yeah man I think you are right. Microsoft and Sony own the console market and while the original Wii had its niche it has been upended with Sony's motion controller and the Kinect. They need to stick to making games for other consoles or figure out something revolutionary that everyone would have to have which I doubt will happen.

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You want less competition? Thats dumb.

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Clixxer replied on Wed, Apr 24 2013 10:35 PM

If Nintendo isn't going to put money in to compete with them then they are just losing money. I mean while I still want their to be competition you can't always have it if companies are going broke then the smart decision to be great at what sells and not mediocre at what doesn't. If they find their niche like the did with the Wii then so be it but Nintendo is lacking in every area from what specs have been leaked about the PS4 and Xbox.

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ajm531 replied on Thu, Apr 25 2013 12:53 AM

It would be interesting if they could some how save money and make money by say maybe making and app for tablet devices or maybe even phones that are capable(i.e higher end phones and tablets like maybe make it mandatory to have quad core something) almost like the xbox smartglass and let use the features of the wii u and charge a couple of dollars for the app. Now the whole play game on the wii u clearly wouldnt work in this scenario but since all it does sometimes provide a separate map or something else interactive that could work great on a tablet. but with all that hardware support it would hard to ensure its stability and smoothness so maybe not such a good idea after all... oh well keep trying nintendo

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Clixxer replied on Thu, Apr 25 2013 1:21 AM

Well if they launched an app to play games or what have you on different devices its just a matter of writing the code to work with those. I would be tedious and time consuming at first but people are doing it everyday so it is not impossible. Now would that make them enough money? It just depends on how many people would want to use it and actually pay for it. 

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Nate1492 replied on Thu, Apr 25 2013 7:37 AM

The wii didn't have a niche market, it had a majority market share. The Motion controller and the Kinect did not unseat the wii's controller, to suggest that it did is ridiculous. Both of these devices paled in comparison to the success and use of the Wiimote.

The Wii U's hardware specs are not about a lack of available money, it was what Nintendo wanted to sell. If you think the reason the Wii U's hardware is set to where it is now is because of a lack of funds, you haven't been paying attention. Ninteno offers a cheaper console than PS4 or Xbox because it aims at the major market. Don't be surprised when the Wii U sells better than the PS4/Xbox Inifinite later this year when the prices are in favor of Nintendo.

a $500 xbox/PS4 or a $200 wii U. I think you'll be a bit surprised.

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sevags replied on Thu, Apr 25 2013 1:43 PM

Nate1492; I don't think clixxer meant niche market referring to market share I guess he meant it more like they had a specific "gimmick" that outran its course. I know the wii sold incredibly well but how you said they will have a major share due to being the only low priced option i'll argue that at the time the wii was the only hardware with motion control. if you actually look at the numbers for when both PS and Xbox released their motion controls you'll see sales of the wii started declining slowly after that point, more many factors, but one being that there was now competition with motion control so not as big of a need to go with the wii. I'll also point out that MS's sales of Kinect are monstrous especially consider how much later after the wii it debuted. Though I wouldn't say it unseat the wii controller I will say its sales did not pale in comparison.

Who suggested that nintendos hardware is governed by available money? But since you brought it up you are correct for this generation but not so correct for the last. Nintendo was already struggling before the wii came out and the company was going to make or break with that console, they did not have the operating budget or the time to design an expensive next gen console they needed to go the cheapest fastest route with the highest profit margin and they did exactly that they upgraded the gamecube hardware slapped on a motion controller and boom sell practically the same product for more $ and like hotcakes. That is the point when their profits went through the roof. You are right though that they needed to undercut the competition in order to survive. Unfortunately this time around it's not going to work for them the wiiU will fall further behind once the real next gen consoles are out and this time it doesn't have the same "gimmicky" flare and a lot stiffer competition in the motion department with Kinect2.

MayhemMatthew; Competition just for the sake of it doesn't mean much. Competition is supposed to drive innovation and in this situation Nintendo isn't offering up much innovation they are just further diluting the market and causing the lowest common denominator problem when it comes to porting games. I am all for competition but this company is stagnating they need to transition to making software and perhaps there will be a void left in the market ready to be filled by someone ready to compete like Steam.

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Clixxer replied on Thu, Apr 25 2013 1:58 PM

 

Nate1492:

The wii didn't have a niche market, it had a majority market share. The Motion controller and the Kinect did not unseat the wii's controller, to suggest that it did is ridiculous. Both of these devices paled in comparison to the success and use of the Wiimote.

The Wii U's hardware specs are not about a lack of available money, it was what Nintendo wanted to sell. If you think the reason the Wii U's hardware is set to where it is now is because of a lack of funds, you haven't been paying attention. Ninteno offers a cheaper console than PS4 or Xbox because it aims at the major market. Don't be surprised when the Wii U sells better than the PS4/Xbox Inifinite later this year when the prices are in favor of Nintendo.

a $500 xbox/PS4 or a $200 wii U. I think you'll be a bit surprised.

 

I'll admit I haven't been paying attention to Nintendo because the Wii is irrelevant in my opinion to the console world. Is the Wii remote better? Better than motion controllers but the Kinect is giving it a run for its money every time Microsoft releases a patch or if they have an upgraded model with the new Xbox. Now will the Wii sell better than the Xbox? Honestly I don't see it. Maybe in the long run a few years down the line but for the rest of the year, Xbox is going win out over the PS4 and Wii. Xbox has the better features, games, and hardware that people are waiting for. I know currently atleast 4 people that have their cash ready for the new Xbox.

 

sevags:

Nate1492; I don't think clixxer meant niche market referring to market share I guess he meant it more like they had a specific "gimmick" that outran its course. I know the wii sold incredibly well but how you said they will have a major share due to being the only low priced option i'll argue that at the time the wii was the only hardware with motion control. if you actually look at the numbers for when both PS and Xbox released their motion controls you'll see sales of the wii started declining slowly after that point, more many factors, but one being that there was now competition with motion control so not as big of a need to go with the wii. I'll also point out that MS's sales of Kinect are monstrous especially consider how much later after the wii it debuted. Though I wouldn't say it unseat the wii controller I will say its sales did not pale in comparison.

Who suggested that nintendos hardware is governed by available money? But since you brought it up you are correct for this generation but not so correct for the last. Nintendo was already struggling before the wii came out and the company was going to make or break with that console, they did not have the operating budget or the time to design an expensive next gen console they needed to go the cheapest fastest route with the highest profit margin and they did exactly that they upgraded the gamecube hardware slapped on a motion controller and boom sell practically the same product for more $ and like hotcakes. That is the point when their profits went through the roof. You are right though that they needed to undercut the competition in order to survive. Unfortunately this time around it's not going to work for them the wiiU will fall further behind once the real next gen consoles are out and this time it doesn't have the same "gimmicky" flare and a lot stiffer competition in the motion department with Kinect2.

MayhemMatthew; Competition just for the sake of it doesn't mean much. Competition is supposed to drive innovation and in this situation Nintendo isn't offering up much innovation they are just further diluting the market and causing the lowest common denominator problem when it comes to porting games. I am all for competition but this company is stagnating they need to transition to making software and perhaps there will be a void left in the market ready to be filled by someone ready to compete like Steam.

Thank you sir for helping clear up what I was meaning and for the insight about a couple things regarding Nintendo I did not know.

 

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