Nintendo Co., Ltd (7974) lost $229 million for its fiscal year
Sorry Nintendo Co., Ltd (TYO:7974), but the profits are in another castle. Nintendo saw an operating loss and net loss for its fiscal year that ended on March 31st. The sales of the Wii U have been dismal at only 6.17 million console sales since launching in November 2013, including 310,000 sold in the most recent quarter.
Nintendo reported an operating loss of ¥46.4 billion ($457 million) compared to an operating loss of $358 million a year earlier. Nintendo reported a net loss of ¥23.2 billion ($229 million) compared to a profit of $68.9 million a year earlier. Nintendo reported revenues at $5.63 billion compared to $6.26 billion a year earlier. Sony sold over 7 million PlayStation 4 consoles and Microsoft sold over 5 million Xbox One consoles since November.
Nintendo sold 590,000 3DS handheld consoles in the company’s fourth quarter. The 3DS has sold 43.3 million devices in its lifecycle to date. The new 2DS console has sold 2.2 million. Nintendo is expecting to hit profitability in the 2014 fiscal year. Nintendo is forecasting an operating profit of ¥40 billion ($394 million) with 3.6 million Wii U and 12 million 3DS consoles sold.
Mario Kart 8 will be shipping on the Wii U soon, but it is unknown if this game will make a major difference for the company. Nintendo has a plan to transform itself by focusing on “quality of life” and health-related products such as a Wii Fit exercise game.