Nintendo’s operating loss takes a hit in part due to “research and development expenses”
All in all, the company has arrived at its third consecutive annual loss, with it’s Wii U platform, the main, but not lone culprit, merely managing to sell 310,000 units for the last fourth quarter, versus its 450,000 sales achievement for the three months ended in March 31, 2013, and 2.72 million units for this fiscal year. Thus, Wii U has sold 6.17 million units life-to-date, which is 80,000 million units short of Nintendo’s revised expectations of 6.25 million units for the last fiscal year. No doubt this stunt will be brought up and piled on Nintendo’s president, who’s approval rating has already dropped from 90.60 percent 77.26 percent last year, during the company’s Board of Directors meeting this summer.
The financial results are as follows:
- Net Sales: ¥572M against the revised projection of ¥590M, down 10% from last year’s ¥635,422M.
- Operating Loss: ¥46M against the revised projection of ¥39M, up from last year’s ¥36M losses.
- Ordinary Income: ¥6M against the revised projection of ¥5M, down from last year’s ¥10M in profit.
- Net Loss: ¥23M against the revised projection of ¥25M, down from last year’s ¥7M in profit.
- Total Assets: ¥1,306,410, down from ¥1,447,878 the year prior.
“The net sales were lower than expected due to the fact that the sales units of the “Nintendo 3DS” hardware, and the “Wii U” hardware and software did not reach their expected levels,” Nintendo said in an issued statement. “The operating loss increased from the forecast due to the increase in inventory write-down and research and development expenses compared with the forecasts in addition to the decrease of net sales.”
In January this year, Nintendo revised its consolidated unit sales forecast for the last fiscal year, slicing Wii U and Nintendo 3DS hardware sales from a combined 27 million down to 16 million and software sales from a combined 118 million down to 85 million. Unfortunately, Nintendo mostly failed to meet even it’s revised expectations, let alone its achievements from the year prior.
The unit sales results are as follows:
- Nintendo DS Hardware: 130K, down from last year’s 2.35M. Lifetime Sales = 153.99M.
- Nintendo DS Software: 10.29M, down from last year’s 33.38M. Lifetime Sales = 943.98M.
- Nintendo 3DS Hardware: 12.24M units against the revised projection of 13.5M, down from last year’s 13.95M. Lifetime Sales = 43.33M.
- Nintendo 3DS Software: 67.89M units against the revised projection of 66.0M, up from last year’s 49.61M. Lifetime Sales = 162.92M.
- Wii Hardware: 1.22M units against the revised projection of 1.20M, down from last year’s 3.98M. Lifetime Sales = 101.06M.
- Wii Software: 26.16M units against the revised projection of 26.0M, down from last year’s 50.61M. Lifetime Sales = 895.22M.
- Wii U Hardware: 2.72M units against the revised projection of 2.8M, down from last year’s 3.45M. Lifetime Sales = 6.17M.
- Wii U Software: 18.86M units against the revised projection of 19.0M, up from last year’s 13.42M. Lifetime Sales = 32.28M.
Going forward, Nintendo expects the future to be brighter for Wii U hardware sales, with forecasted unit sales pitched at 3.6 million for the year ending March 31, 2015. On the other hand, it expects Nintendo 3DS sales to drop a bit to 12 million units.