Nintendo Back in the Black Despite Wii U Having "Negative Impact" on Profits

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News Posted: Wed, Oct 30 2013 11:09 AM
Nintendo thought it was getting a jump in the next generation console wars by lobbing the first grenade with its Wii U console, but on hindsight, the hardware maker may have effectively shot itself in the foot instead. While Microsoft's Xbox One and Sony's PlayStation 4 are both expected to light up the sales charts when they debut next month, Nintendo said it's Wii U hardware is having a "negative impact" on its profits. Not good.

Nintendo sold just 460,000 Wii U consoles during the six month period ended September 30, and 3.91 million units since it launched. Perhaps a bit stubbornly, Nintendo still expects to sell 9 million consoles by the end of its 2014 fiscal year. Color us skeptical.

Wii U

The low sales aren't the only problem. Nintendo said the main reason why the Wii U is negatively affecting profits is because the company rolled out price drops in the U.S. and Europe, which ultimately led to an operating loss.

Even though the Wii U isn't doing Nintendo any favors, the company posted a profit of 600 million yen ($6.14 million) on revenue of 196.6 billion yen ($2.01 billion). That's a marked improvement from last year's loss of 28 billion yen ($285 million). The other positive for Nintendo is that it continues to enjoy "strong sales" in Japan for its 3DS family (3DS, 3DS XL, and 2DS).
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HanyangXu replied on Wed, Oct 30 2013 6:39 PM

Nintendo's gonna be just fine. They have so much cash reserves, it'll take years for them to go the route that SEGA took.

And frankly, I'm okay with that.

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ajm531 replied on Thu, Oct 31 2013 1:01 AM

Lets just hope they can up the ante with whatever they produce next and that its not quite the semi flop this was.

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