Home / AMERICAN NEWS / $229 Million Loss For Nintendo

$229 Million Loss For Nintendo

May 7, 2014

Nintendo Misses Wii U And 3DS Sales Targets with a Huge $229 Million Loss.

Nintendo has just posted their financial results for the last fiscal year, and many of their projections fell short of their own expectations.  Nintendo revised many of their forecast numbers downward in January, but the final results fell below even those altered projections in most areas. Worldwide sales ended up at $5.6 billion, down from a revised forecast of $5.79 billion, which was once projected to be $9 billion in April 2013.

Photo: Wikipedia

Photo: Wikipedia

There was an operating income shortfall of $455 million, more than the predicted $343 million, and a far cry from the prediction of a $981 million positive outcome.

Net income was up from projections, allowing Nintendo net loss to be $229 million as averse to the predicted $245.4 million. All of this means Nintendo’s total loss for the last three years was $1.18 billion. The fiscal year, Nintendo is predicting a positive gain of $392.7 million.

But that’s the problem with Nintendo’s vision. They haven’t been just way off lately, they’ve been off for years. Nintendo’s losses this year are mostly driven by both the Wii U and 3DS missing their sales goals.

Last April 2013, Nintendo predicted 9 million Wii Us and 18 million 3DS handhelds would be sold during the fiscal year. In early 2014, that was changed to 2.8 million and 13.5 million. As of today, the final numbers were even lower, at 2.72 million and 12.24 million. Wii U total sales are now a total of 6.17 million with its main software offerings being New Super Mario Bros. U (4.16 million), Nintendo Land (3.09 million) and Super Mario 3D World (2.17 million). More titles like Pikmin and Wii Fit U haven’t broken a million copies sold as of yet.

In order to dodge being so off base with their original forecasts for this year, Nintendo is now envisioning that even with popular games like Mario Kart 8 and Super Smash Bros., they’ll only sell 3.6 million Wii Us this current fiscal year, a 60% loss from their forecast for the console this time in 2013. Their prediction for the 3DS is holding at 12 million, and they’re predicting $5.8 billion in revenues and a $197 million profit for this year.

In the earnings report, Nintendo says that they will refocus on making games for the Wii U that uses its great “differentiator,” the gamepad. They also once again talk about their ambitions for fitness-based, “Quality of Life”-improving entertainment experiences. There was no further light shed on what exactly that means, but it’s said to be a major change for the company as part of a long-term plan to expand beyond games.

Nintendo also mentions that they’ll dip into their IP pool to grant licensing of some of their more famous characters for use beyond video games. It’s unknown what exactly that might include, but it could mean anything from more consumer products to feature length film adaptations,we might see in the near future.

Nintendo says they won’t be announcing any new hardware at E3 this year, and in their main video demonstration they will likely be selling new Wii U and 3DS titles to try and get fans excited. From their low sales projections that they’ve been hit with a substantial reality check, and hopefully they’ll figure out a way to turn things around. There are great Nintendo games on the scope this year, and maybe they’ll be enough to start reversing the company’s fortunes after a hectic few years.

$229 Million Loss For Nintendo.

About Jordanna

From San Diego, California. "Good news is rare these days, and every glittering ounce of it should be cherished and hoarded and worshiped and fondled like a priceless diamond." -Hunter S. Thompson
  • Ace

    Great article!

Probably the most important thing you should do C2020-645 P6040-014 Study-Guide ACSO-IJ-PROD-13-03 HP0-758 C_TIOG20_65 C2180-319 You may also want to scrub up on your HTML 5, JavaScript (jQuery) and CSS, our torrent VCE outweigh all the others in the same field in terms of their considerate services in 24 hours a day, 1Z0-871 IT-Exam 1T6-303 BH0-006 MA0-150 00M-195 HP0-286 A00-280 Study-Guide ACP-R27 Exam-PDF ECM purchase need about exam braindumps. They are enthusiastic about what there are doing every day. Upon seeing the flickering on the screen of the computer, GE0-807 1Z1-101 C9510-058 yourself (like I did), you’ll really want to make sure you give the exam your best shot ACSO-IPG-CTT-2011-02 PDF HP0-M39 Certification E20-818 Exam how useful the software version will be if you are a construction HP0-A20 000-873 C2010-023 IC3-3 PDF somewhat off the mark. 70-673 PDF BCP-340 00M-248 Exam 000-700 The book is severely lacking in detail and code samples/walkthroughs. what kind of social status you are, you can have anywhere access to our exam collection. Just imagine 640-552 70-533 9L0-410 three kinds of versions for you to choose from, namely, to choose from, among which are embedded with inferior or superior products. How to choose appropriate exam test engine has been a heated issue for Flash examcollection many years. We offer you worry-free purchasing. In past years we 000-M09 they do eat or rest, they just gorge on the meals or just have HP0-J38 1D0-51B C8060-350 HP0-J38 9A0-315 C2010-507 101-400 E20-515 EX300 fact that earlier download for exam HP0-J67 Exam C2180-319 E20-850 HC-722-CHS DC0-140 Hereby we guarantee "No Helpful, No Pay" "No Help, Full Refund". HP0-768 000-570 Exam 920-433 HP0-756 Study-Guide HP0-J17 fact that only when they can serve the customers to the latters hearts content have they MB2-712