Nintendo Reports A Profit In Q2 Earnings As Wii U Gains It’s Footing

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“Nintendo has published its second quarterly financial report today and posted an overall net profit of 14.3 billion Yen, exceeding analysts’ predictions. Despite the gaming giant recording an operating loss of 215 million Yen (approximately €1.56 million / £1.23 million / $2 million), losses were considerably lower than the 9.4 billion Yen recorded in its first quarterly results for 2014 -15, and much lower overall when compared to the 23.2 billion Yen in operating losses suffered in September 2013.

Compared to its first quarterly results from July – which showed net losses of approximately 9.9 billion Yen – its boost in profit is magnanimous. In its report, Nintendo says that due to a depreciation of the Yen and its momentum in both hardware and software sales, net income more than doubled over on the previous year’s financial report of 6 billion Yen. Nintendo’s 14.3 billion Yen (€103.8 million / £82 million / $132.3 million) in profits plant the company firmly in the black after its continuous string of operating and net losses.

With the return of profits, Wii U hardware has also gained momentum after its initial struggle in the competitive market with sales of 1.12 million units from April to September. Nintendo says the boost in sales are garnered from its flagship title Mario Kart 8, along with Hyrule Warriors‘ popularity in the western market. It comes after Koei Tecmo reported a welcoming surprise in terms of sales, though figures were not revealed. Nintendo doesn’t allude to individual Wii U software sales in its report, though does mention 9.4 million units were sold within the six months.

On the other hand, the 3DS saw a decrease in hardware sales over on the previous year – 2.09 million units from April to September 2014, compared to 3.89 million units from April to September 2013. However, Super Smash Bros. for 3DS showed “extremely strong” initial sales, coming in at 3.22 million units worldwide after shipments released at the tail-end of September. Overall, software sales for Nintendo 3DS totalled 23.3 million units during the second quarter.

Going forward, then, Nintendo has not revised their projected forecasts for Wii U or Nintendo 3DS, which still stands at 3.6 million units and 12 million units respectively. And according to the report, Wii U’s life-to-date sales stand at 7.29 million. A snippet of Nintendo’s forecast for the Wii U is outlined beneath.”

“Since the May release of “Mario Kart 8,” the “Wii U” platform has been experiencing improved sales momentum. In addition, we will release “Super Smash Bros. for Wii U” in November in the United States, and in December in Japan and Europe. It is the first year-end sales season for Wii U in which two big Nintendo titles will be available for family members and friends to have fun together with in their living rooms.

Moreover, we will launch character figures called “amiibo,” which are categorized as a brand new product genre, in conjunction with the release of “Super Smash Bros. for Wii U.” “amiibo” is one of the examples of actively utilizing our own character IP. In addition to being attractive figures for consumers to collect, when “amiibo” figures are tapped on the Wii U GamePad, they offer fun new gaming experiences by affecting relevant software titles in various ways. At the same time, we will aim for more product exposure and an increase in brand awareness by having Nintendo character figures displayed on store shelves. By doing so, we will attempt to expand sales and further stimulate the Wii U platform.”

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