Nintendo Co., Ltd (TYO:7974) Reports $81M Loss For The Quarter
Nintendo Co., Ltd (TYO:7974) has reported bigger than expected quarterly losses due to weak sales of the Wii U game console. Nintendo President Satoru Iwata said that the success of the Wii U and future direction of the company is largely dependent on the performance of new games during the holiday sales season.
Nintendo reported an 8 billion yen ($81 million) loss for the three months ended September 30th. The sales have dropped to 115 billion yen. The sales of the Nintendo Wii U console hit 460,000 units in the six months through September, which is only 5% of their 12 month target. Investors want Nintendo to release the popular Super Mario, Zelda, and Pokemon games on mobile platforms, but Iwata said that this could result in the death of the company. Nintendo relies on these franchises to buy their hardware. Iwata believes that releases like Super Mario 3D World, Wii Party U, and Wii Fit U could help turnaround the company.
“One game has the power to change everything,” stated Iwata. “Are we satisfied with these sales results? No. Is it impossible to recover from this? No.”
Nintendo kept their full-year sales forecast for Wii U consoles at 9 million units. Before these results were released, the market consensus for Nintendo’s full year operating profit was around 67 billion yen.