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