Nintendo has published its annual financial results for the 2013-14 fiscal year and has recorded another yearly loss due to the Wii U’s horrid performance. Ending on March 31, 2014, Nintendo’s overall net sales fell from last year’s 635.4 billion yen (£3.6bn) to this year’s 571.7 billion yen (£3.3bn). According to the report, Nintendo has culminated a total net loss of 23.2 billion yen (£134m) this year, compared to its 7 billion yen (£40m) profit from last year.
From a sales stance, the Wii U has performed pathetically compared to the 3DS. In 12 months, the Wii U sold 2.7 million units, totalling its worldwide sales to 6.1 million units shifted since the console’s launch. Nintendo has forecast a smaller amount of 3.6 million units for the Wii U within the 2014-15 fiscal period, a step down from the 9 million predicted in the 2013 report.
Nintendo says that its current home console still has a negative impact on profits, mainly due to the considerable markdown in the US and Europe. As such, although gross profit increased this year, due to administrative expenses and the nuts and bolts of the business, Nintendo posted an operating loss of 46.4 billion yen, up 10 billion yen from last year’s 36.4 billion yen loss.
Due to poor hardware sales, the Wii U’s software sales did not perform as expected. However, key first-party titles, meaning Super Mario 3D World, New Super Mario Bros. U and New Super Luigi U, all sold upwards of one million units. Global sales of Wii U software peaked at 18.86 million units, but Nintendo expects sales to increase an extra 2 million by next year mainly from Mario Kart 8 and Super Smash Bros for Wii U, giving a 20 million unit forecast.
“Nintendo will focus on efforts that seek to stimulate the platform. By providing software that takes advantage of the Wii U GamePad, utilizing its built-in functionality as an NFC reader/writer, and adding Nintendo DS Virtual Console titles to the Wii U software lineup, Nintendo will seek to enrich the value of the Wii U GamePad, the most important differentiator of Wii U, and as a result expand the sales of the Wii U platform.”
Hardware sales of the Nintendo 3DS have fallen slightly, with 12.24 million units total compared to 13.95 million units last fiscal year. However, unlike the previous year, the Nintendo 3DS has not managed to bridge the expenses gap left by the Wii U. Though Nintendo has forecast a further 12 million units for the handheld console, proving that they estimate a steady stream of sales once again. Pokémon Ruby and Sapphire Remakes will sure boost the 3DS again. Not to mention MH4U early next year.
In regards to 3DS software, global sales for Pokemon X and Y stormed to an incredible height with 12.26 million units sold, while successful simulation game Animal Crossing: New Leaf sold an impressive 3.8 million units with the US and Europe. Nintendo also notes that Luigi’s Mansion 2, The Legend of Zelda: A Link Between Worlds and Mario and Luigi: Dream Team Bros. all sold more than two million units. Global software sales totalled a massive 67.89 million units over 49.61 million units last fiscal year.
It’s clear that Nintendo are fighting a losing tough battle when it comes to sales for the Wii U, but given their push for the home console with marketing campaigns for Mario Kart 8 and E3′s event for Super Smash Bros., coupled with a modest forecast for sales, Nintendo hasn’t quite thrown in the towel just yet.
Once again Nintendo, if you only listened you wouldn’t be in such a sad state. Starfox…was that so hard to do? Now by no means does this mean Nintendo is “doomed” unfortunately lol. They still have a crap ton of money left.