Nintendo's First Quarter Shows Rising Profits

Nintendo's First Quarter Shows Rising Profits

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Image Source: Nintendo

Wii U sales may start to pick up as well, as Nintendo forecasts 900 million unit sales for the year.

It's an odd financial quarter where you make fewer sales this year than you did last year, but still post a healthier profit; yet that's what Nintendo has managed to do. Net sales in April-June 2013 were ¥81, 548 million, ($829.684 million) a decrease of a little under ¥4,000 million on the same period last year. However because cost of sales went down, that means gross profits are up, and net income rose to ¥8,624 million ($87.742 million) overall. Nintendo acknowledges that its next generation Wii U console hasn't enjoyed good sales, but hopes that a flood of new first and third party titles will revive interest in it.

That's why Nintendo's forecasting 900 million Wii U units sold by March 2014. Currently it's managed to move about 3.61 million units world wide, which means Nintendo believes it can move twice as many units as it has so far, in the next year. Given the Wii U's sluggish sales to date, particularly in North America, this may prove too bold a forecast, but something needs to happen to improve the Wii U's fortunes, and an increase in available games might just be it. That said, while there are quite a few new titles on the way, Nintendo's financials show a worrying number of them due Spring 2014, or just sometime in 2014, or TBD. One's just listed as "a brand new title from Monolith Software."

There may be another way forward. "We also strive to improve hardware profitability by reducing [Wii U] costs," says Nintendo, but whether or not this suggests a price cut on the horizon is debatable. It's more likely that the console will hold its price at the current level for now, while striving to make as much as it can out of those margins. Later, perhaps, a reduction in costs will be passed on to the consumer, but for right now Nintendo needs all the Wii U help it can get.

Source: Nintendo

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"We also strive to improve hardware profitability by reducing [Wii U] costs," says Nintendo

That sounds more like they are going to find ways to reduce the cost of making Wii U's, not the Wii U's price point. If they lower the price of it, but not the manufacturing costs, they won't make as much profitability as they would with lowering manufacturing costs and not the actual price.

Karloff:
Currently it's managed to move about 361,000 units world wide, which means Nintendo believes it can move twice as many units as it has so far, in the next year.

Pretty sure it's sold 3.61 million units since launch, not 361,000.

source: http://www.besttechie.com/2013/07/31/nintendo-has-only-sold-3-61-million-wii-u-systems-since-launch/

Honestly it be news if Nintendo WASN'T increasing profits.

You guys read the news all wrong!

They're projecting 9 Million WiiU's sold, not 900,000, Nor 900 Million.

They've sold 3.61 Million WiiU's as of now.

Why is it 4,000 Million Yen, when it should be 4 Billion Yen?

I'm really confused as to who wrote this. You need to rewrite it, ASAP.

You botched the numbers throughout the entire news panel. At one point you say they're looking to sell 900k units next year and that they've only sold 361k units (both are wrong by a factor of 10), but then later on, you claim they're looking to sell 900 million units (which I sincerely doubt was actually said, and directly contradicts your claims that they're looking to sell roughly twice as many units as the prior year). Am fairly certain you botched the financial figures as well.

Honestly, this is all stuff that should've and could've been caught with just a little extra time taken to EDIT your news post before posting it. Is it so important to be "first" to report the news that its accuracy is no longer important? Welcome to the CNN Club, Escapist.

As the others have said, I think you need to double check the figures for this article. If they sell 900 million units its about one unit for every eight people in the world!

uh, you might wanna change some of those numbers because they are WAY off.

Anyway, the fact that they're still profiting despite all the doomsaying shows that Nintendo is NOT in trouble. Once the first party titles start coming in things will pick up. Once again Nintendo has to do all the work themselves because expecting 3rd parties to do their jobs properly is too much to ask nowadays

Those numbers are all over the place. Nintendo forecast 9 million sales, not 900 million.

And despite the lackluster Wii U sales, Nintendo's profits are easy to explain- excellent 3DS hardware sales, and excellent software sales. Animal Crossing New Leaf alone recently made it past the 5 million mark. Fire Emblem, Luigi's Mansion both turned a hefty profit for Nintendo. Even NSMBU has managed to sell over 2 million copies on a Wii U userbase of 3.6 million.

When their software is selling so consistently strongly, they can offset that against their Wii U hardware sales.

Oh, and new Pokemon this October. I expect it's going to start raining money at Nintendo HQ then.

Christ, it's like they're trying to prove to us that Susan's gone.

Greg, Mike.. you guys know what that word "Editor" in your titles means, right?

This means nothing. Nintendo is still doomed.

On a more serious note, who the hell is checking the facts in this article? The numbers are all over the place. Fix that please.

Also, as DVS BSTrD said, I would be more surprised if they didn't make money. 1 bad year in a companies history and everyone thinks the company is doomed... get real people.

Karloff:

Wii U sales may start to pick up as well, as Nintendo forecasts 900 million unit sales for the year.

Is Karloff trying out for the Onion?

Ok, just to add to the chorus, however unneeded it is, what's up with the editing going in the news lately? It would seem like one out of three news posts has to be fact checked, typo corrected or something along those lines these days. 900 million Wii Us? That wouldn't even make sense in my head if I had written it. Stop trying to race to the goal for posting and show some retraint in the name of good writing.

BiH-Kira:
This means nothing. Nintendo is still doomed.

On a more serious note, who the hell is checking the facts in this article? The numbers are all over the place. Fix that please.

Also, as DVS BSTrD said, I would be more surprised if they didn't make money. 1 bad year in a companies history and everyone thinks the company is doomed... get real people.

Yeah... Seriously. This is a company founded in 1889, and it's had much, much worse periods than 1 bad financial year immediately following a bunch of years with record profits...

I mean, immediately prior to this 'bad year' Nintendo actually had more cash available than Microsoft did...
And Microsoft is notorious for hoarding money 'just in case'...

Give us 'X' Nintendo and i'll bloody well buy a Wii U. Until then it can sit on the shelf and get cheaper while I wait for Tales of Xillia 1 and 2

Most terrible typos of the month in this article. Pretty sure it's 9 million units forecast.

Mr.Mattress:

Why is it 4,000 Million Yen, when it should be 4 Billion Yen?

IIRC the British say 1,000 million instead of 1 Billion. It's a cultural thing.

I'm guessing this was written by an Englishman.

I'm guessing they didn't run it by an editor, too.

900 million, huh.

Either that's a typo or Nintendo is Really optimistic about this.

Copper Zen:

Mr.Mattress:

Why is it 4,000 Million Yen, when it should be 4 Billion Yen?

IIRC the British say 1,000 million instead of 1 Billion. It's a cultural thing.

I'm guessing this was written by an Englishman.

I'm guessing they didn't run it by an editor, too.

it's not "instead of", our billion is 1,000,000,000,000, or in other words, "a million million" (since it's two millions BI-llion)

 

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