Nintendo finally returns to profitability


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For the first time since 2011, gaming giant Nintendo is a profitable company. In the company's financial report for the fiscal year that ended on March 31, 2015, Nintendo posted net sales of 550 billion yen (around US$4.61 billion), which led to a welcome operating income of 24.8 billion yen (US$207.8 million).

Nintendo, which saw 75.4 percent of their sales come from outside Japan, attributed some of their financial success in the past year to the depreciation of the yen against the US dollar. The company also saw "robust" sales of their most popular games, including Mario Kart 8, Super Smash Bros. for both Wii U and 3DS, and Pokémon Omega Ruby/Alpha Sapphire, all of which launched during the past financial year.

As for hardware, Nintendo collectively sold 8.73 million 3DS consoles, down 29% on the 12.2 million 3DSes sold last year. Wii sales were also down significantly, dropping to just 460,000 from 1.22 million the previous year. However, Nintendo did see a rise in Wii U sales, which jumped 24% to 3.38 million units in the past financial year.

For the next financial year, Nintendo expects their operating income to double to 50 billion yen (US$419 million) on the back of slightly increased revenue of 570 billion yen (US$4.78 billion). This will again please investors who have waited patiently through the past four years for the company to turn a profit.

Nintendo also expects to sell fewer 3DS consoles and fewer handheld games in the upcoming financial year, despite the recent launch of the New Nintendo 3DS. Wii U hardware sales are expected to increase slightly, while the company sees software sales dropping slightly. Unsurprisingly Nintendo also expects Wii hardware and software sales to fall off a cliff.

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This is good news I think. Maybe the price of the Wii U will come down this summer. I was looking forward to picking one up at some point but I've been on a budget the last few years.


Posts: 147   +25
The only downside the Wii U has in my opinion is the amount of games. They do have classic games and indie games in their online store but most of them don't seem intersting enough to buy. Also the second hand market for that reason is also very limited.
If Nintendo really wants to make money all they need do is pressure Game Freak to team up and create a Pokemon MMO. Nintendo does not have a single hit proprietary console game that focuses on social interaction on a world wide scale. There's nothing to keep players coming back day after day. This is why many people only play their WiiU once every month or so when family or neighbors come over.