Nintendo

Nintendo Reports A Profit In Q2 Earnings As Wii U Begins To Show Momentum

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, but in the mean time let us know your thoughts on the second quarterly financial report in the comment section below.

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.

85 comments

    1. They still have an operating loss though, when they clear all that shit up then Nintendo fully “won”

        1. Good point, but software is where the long term money comes from, but without the mass fanbase for a console, software will have to do double time, with less help…

    2. How do you have net profit when showing losses? Yeah. I can run my house income with a loss but show a net profit. What r they talking about

  1. Mario Kart 8 won’t help Nintendo turn a profit huh???
    Well, I guess you were all wrong about that because here’s the proof that it did……

  2. I wonder how the Wii U will do on Black Friday. I noticed the other two consoles had a price drop, but with Wii U being at $299, it probably doesn’t need it. It’s the bundles that will convince people! So far though, I’d have to say the X1 has the best deal. It costs $350 and comes with two games. The PS4 is $360 and while it doesn’t come with anything, I think some people will still get it. Just because they don’t want an X1. Lol.

      1. I do. I’d get one for the Masterchief Collection and Sunset Overdrive. I’d like to get a PS4 too.

        1. sunset overdrive looks cool but I’m not giving ms any money they are evil and they are horrible they don’t care about gamers in general or video game or developers as a gamer you should feel this way also… everyone should.

          1. Boohoo microsoft doesn’t care about gamers, they for some reason just want our money! I mean the business wants to make money, i just can’t believe this! Honestly if anything the changes that Microsoft has made from the initial launch and reveal of xbox one shows they are listening to their fans and really making the right moves now so grow up.

            1. Nah, Microsoft wasn’t listening to the fans when they stepped back after the reveal. They were listening to polling data.

              Yeah, companies want to make money, but Microsoft is pretty unethical in several areas across the board when it comes to their Xbox division.

              1. That is exactly what listening to your fans is, otherwise they wpuld have neglected these issues and kept them. Not only that but they have made their console much more game centric and constantly updated their system thus far. They all have their bad practices, just microsoft takes much more heat over them. You can say what you want but phil spencer has done a good job with the xbox division since he has became the head.

                1. They tried to destroy gaming. My god people have short memory spans. If Microsoft had thier way, there would be no more physical copies. All games would be downloaded. That means every video game store would be out of business. That means they could force, literally force dlc on any game they want. They would have complete control of your console. They would tell you when and how long you could play “your” games. You people support a Company that tried to do this to gaming. I just don’t understand. Phil Spencers laughing his ass off..

                  Gaming is no longer about having fun, or playing great games. It’s about powerful hardware specs. This Generation of gamers will destroy gaming at it’s core foundation. This is the worst generation of gamers. The kids growing up now have no understanding of how gaming should be.

          2. You shouldn’t let a company’s background from buying their products. Microsoft isn’t as bad everyone is making it out to be! (Except their phones)

  3. to be honest nintendo could have done much better by releasing more software on Wii U. All th software release happened during September to December this year, with the exception of Donkey Kong (Feb) and mario kart 8 (may).

    I am glad they push back captain toad cause from December 2014 to September 2015 I don’t see much software release on Wii U. I know I will get slam by saying this but I hope ubisoft bring assassin’s creed rogue on Wii U.

    1. Err…are you sure?

      What about Xenoblade, Yoshi, Splatoon, Zelda, Star Fox, Kirby, Mario Maker and possible Devil’s Third and Project Cars?

    1. THAT IS THEIR PROBLEM! This is their cycle, they do awesome, even change the whole game, and instead of fanning the flames they let the momentum dwindle and are shocked when the lagging behind. They have to keep their base inspired and excited with games no one else can make.

  4. Hey kids is time for your favourite Comments Section Predictions!
    sasori clones will come in first, trying to act like sasori
    One of the sasori clones might say something more controversial than the other sasori clones
    Land Of Empires, iamscubosomething and possibly Valve Glados might attack and not comment on the topic of the article itself.
    Typical Nintendo fans/fanboys say Nintendo has a bright future
    Random troll comes in, praises the PS4 and the people ^ jump on him.
    HollowGrapeJ, Namie and Shuhei Yoshida argue with the Nintendo fans/fanboys
    …When everything dies down, when everyone moves on to the nest controversial article, Stranga suddenly comes in and replies to everyone he doesn’t agrees with, and no one’s gonna reply back because they’ve moved on

    See ya nest time kids!

  5. All Wii u needs is a continue momentum of good games and that’s it. It has enough power thanks to a popular game that proved me wrong. So I think it will get passed 9 million before the end of January.

  6. Well written article.
    So I guess this means Sony isn’t taking out a massive loan to buy Nintendo? Sony fanboys are not gonna like this!
    (no offense to legit Sony fans ;) )

    1. I’m hopeful the Wii U will match, if not slightly better than the GCN. It does have a mountain to clime though.

      Agreed with the XBone will fail, hard. PS4 might push 60 million, perhaps a bit more. All depends how long the life cycle is.

  7. It makes you wonder how things would have been if Nintendo had all of these AAA Wii U games right at launch? Too bad they couldn’t have done that. I hope the successor to the Wii U will have a lot of AAA games at launch. And good third-party support. I can’t believe how so many third party companies turned their snobby noses up in the air and ditched the Wii U. Just as I was starting to like Ubisoft.

    1. Yeah, Nintendo’s biggest mistake with the Wii U was trying to leave things to third parties.
      They should have had their own AAA first party games ready at launch; the fact that it took this long to recover significantly despite all the multiplats that came to the system just proves that third parties don’t know how to make their multiplats sell to the Wii U audience.

      1. You can ask literally any PS3 or Xbox gamer around if they would buy a Wii U to play third party games and you’d be guaranteed a “no”. There isn’t enough of reason to make them want to switch. Especially not with the Gamepad turning them away. Let’s face it, Nintendo has NEVER been known about third party games. When someone brings up Nintendo, the first thing they even talk about is Mario or another Nintendo exclusive game. It’s not the third parties, it’s just that no one wants to play third party games on a Nintendo system.

        1. I know, and I agree.
          My point was that third parties didn’t actively try to change that by putting out new and interesting games built entirely around the Wii U, during its launch phase.
          Hence, it was a mistake to rely on them.

          1. $$$. That’s why. They’re not trying to give out freebies. If they don’t make profit, then you are a lost cause to them. I hate that Wii U isn’t getting any third party, but Nintendo is to blame for not making their console powerful enough for them to make games that they want. I can 100% guarantee that if Wii U was just as powerful, if not more powerful than PS4, we’d be seeing waaaaaaaay better sales. And games too. It wouldn’t be in this situation at all.

            1. It’s power is a weak excuse that doesn’t hold water.
              Destiny is a game they wanted to make, yet they still put that on systems that are weaker than Wii U instead.
              They could still make the kinds of games they like on the Wii U, and if they had made those games exclusives, they’d be seeing much better sales by now.
              Imagine all of those lack-luster ports replaced by all new third party franchises.
              Franchises aimed at core gamers, with the kind of gameplay they love.
              THAT would have gotten them sales.
              Third parties are at fault for not making the kinds of games that would have sold.
              They relied on games that had no chance of selling because they had already established those franchises on other systems.
              If they had made new games and built up trust in third party games on the Wii U, they’d have had an easier time making their multiplats sell better on the Wii U by now.

              1. No, power isn’t a weak excuse. We are getting to the point where devs are dropping the PS3 and 360 because they aren’t powerful enough. Like how the game Dying Light just got cancelled for PS3 and 360 and how Assassin’s Creed Unity isn’t on the last gen systems. The only reason they still make games for last gen is because of the that same reason. $$$. They’re going to suck up as much money as they can before they finally move on to the next gen systems. Wii U isn’t getting third party games because it fails with both of those reasons. It isn’t powerful enough for the third parties trying to make newer games and it isn’t profitable enough to put existing games either.

                1. It’s powerful enough for them to make incredible games on.
                  If it were not, then Bayonetta 2 wouldn’t even be a thing despite Nintendo’s funding of it, because it wouldn’t have been able to hold Platinum’s vision of the game.
                  Unless they completely drop support of the PS3 and 360 tomorrow, they’ve got no ground to stand on when they pass up the Wii U for older systems.
                  They COULD make great games on the Wii U.
                  Games that gamers would want to buy the system for.
                  They just don’t want to take the chance, because they failed to make their multiplatform games sell, and didn’t take into account WHY they didn’t sell.

                  1. Yeah, Wii U can make great looking games, but so could PS3 and 360. The point is it isn’t powerful enough for what they want to make now. Don’t you know that this generation is all about graphics? Graphics, GRAPHICS, GRAFICKS!!!11 Developers want to ensure that you can see every pore and armpit hair on your character to let you know that you are getting a true next gen experience. The Wii U just doesn’t have the type of power to allow you to see all the individual strands of hair and sweat on your character. And that’s why it misses out on games. XD

                    1. It’s a sad fact, but that’s true.
                      But that doesn’t excuse them from making games the system could handle, and making damned good profit off of it in the bargain.
                      In the end, it’s third party stupidity that holds them back from selling on the Wii U.

                    2. It’s because the games don’t make enough that they want. The developers have different goals on how much they want games to sell. Remember how Tecmo Koei said they hope Hyrule Warriors sells one million? Well, one million is considered a failure to other companies like EA. It needs to be at least 5 times more than that (5 million) to satisfy them. :P

                    3. Well that’s because they waste a shit-load of money on overwhelmingly stupid high budgets.
                      They’ve got no one to blame but themselves on that one.

                    4. Anyways, the Wii U isn’t getting any third party games because of all those reasons. The devs just got tired of low sales on Nintendo platforms so they just quit. When the Wii U came out, most third party games were just ports or upgraded versions of games before. They tried to test it out and see if they could get a bit of money before fully going into it. Most of the other developers like (Rockstar, Bethesda, etc) didn’t even want to take a chance. That’s just how bad it was to them… :/

                    5. Yeah, I know.
                      What’s sad is that doing the opposite, that is, going full-tilt with exclusives instead of dipping their toes in with ports, would have netted them better sales and more respect.
                      Ah, well. Burned bridges and all that.
                      What matters is whether or not they can change their actions going forwards.
                      If they can’t do something in the here and now, then they won’t get any money off of Nintendo’s next home console, either, even if it becomes more powerful than the PS4.
                      They need to build new bridges.
                      Platinum’s already building them, if Bay 2’s reception from Nintendo fans and reviewers alike is anything to judge by.
                      Maybe following Platinum’s example would help them out…

                    6. I think the only way Nintendo is going to make the next console a huge success when it releases is to have it new IP’s and quality exclusives. People are really starting to get tired of just Mario and Zelda and most of the other franchises they keep reusing. It happened with the Wii U when it released. We got another Mario game. And people only really got interested in it at the beginning because they thought it was going to be that Nintendo console that got all the third party back. Now we basically don’t have any and it seems nobody cares about the Wii U anymore. I can hear people at my school for example saying they don’t want a Wii U because it doesn’t have all the latest games they want. If the next Nintendo console doesn’t have any third party, no one’s going to look at it. Maybe core Nintendo fans, but everyone else will be looking elsewhere for their games.

                    7. Yeah, well, multiplats will be a lost cause even if the next one does bring third parties back.

                      It’s to the point where gamers are now trained to play multiplats on a PS4 or XBone.
                      Even if the Wii U’s successor gets all the same multiplats and all the same content…
                      No one will buy them.
                      They’ll all go to Sony or Microsoft because that’s where they’re used to buying them from now.
                      It’s just a cold, hard fact that gamers don’t expect to get a Nintendo system for multiplats anymore, and unless they abandon Sony or Microsoft for Nintendo next gen, it’s never going to change.

                      If third parties want sales on Nintendo’s next console, they’ll be making exclusives for it.
                      That’s all there is to it.

                    8. But there ARE third party exclusives on the Wii U. And they didn’t do well according to the developers. Wonderful 101, Zombi U, etc.

                    9. They’ve still garnered more attention and praise than the multiplats have, though, and that’s the key; they’ve shown consistently higher quality than the Wii U ports of other franchises.
                      You could argue that that’s because there’s no other versions to compare them to, but the fact of the matter still remains; they have a better shot of selling than the multiplats do.
                      For one very good reason:
                      They don’t have their userbases established elsewhere.

                      BTW, about the two you pointed out….
                      Zombi U sold around 700k to a very small install base.
                      It did well; Ubisoft just wasn’t satisfied with that number because they’re used to the kinds of numbers their multiplats pull in on other consoles.
                      And as for TW101?
                      #1 Platinum games rarely sell spectacularly, and #2, it was a new kind of action game that didn’t follow traditional action game rules, so it didn’t take off as well as if it had had some sort of traditional control scheme for the various combos.[though I, personally, loved it for its differences]

                      My point is; it’s a fact, at this point, that even with a few failures in the short term, exclusives still have a better chance than multiplats do, of selling on the Wii U, because #1 gamers are used to buying them on other systems because that’s where they’ve formed their install bases, and #2 because multiplats are not done correctly on Nintendo’s systems as a majority rule, ever since the Wii, if not since the N64.

                      There’s just no other way for them to go.
                      They’ve tried multiplats.
                      It’s not working.
                      They haven’t tried a boat-load of exclusives.
                      That has a better chance.

                    10. The fact is though that those games come at cost. Third parties aren’t just going to spit out exclusive after exclusive just to not make any profit. If they don’t see improvements immediately they’re giving up and moving on. They don’t have time to keep wasting money on Wii U when they know they could be making much better money on another system.

                    11. The cost wouldn’t be as much as the kinds of costs they splurge on with their AAA multiplats, though, since they wouldn’t be putting as much money into beautifying them due to the architecture.
                      Besides, it’s not that difficult to make an exclusive that can appeal to the Wii U audience.
                      Especially now that Nintendo has opened up to third parties by allowing them to make use of Nintendo’s characters for spin-off titles much more than in the past.
                      I wouldn’t be surprised, honestly, if we see a sequel to Hyrule Warriors at some point, if not something else like a new series cross-over.

                    12. 3rd Party Damage Controller Hollow is at full force on this topic with smashbrolink. Typical…

                    13. That’s usually the type of response I get when people are too lazy to make up any argument. It’s ok. I understand. :P

                    14. There is nothing I can say on the topic that smashbrolink hasn’t already said himself, so me saying anything else would have been pointless.

            2. You’re right. As stupid as it sounds power is the only way a console can sell well now… So sad considering the gaming industry back then wasn’t a power battle :( The industry is becoming more about power than anything else now. In the next gen the most powerful console will be the selling point.

              1. What’s funny is that people say it’s all about power with consoles and then when someone tries to tell that person to go get a PC, they pull the “but (insert console here) has these exclusives. But I thought you said it was all about power? Oh, so NOW you want to bring up games? LOL!

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