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Despite strong sales of Mario Kart 8, Nintendo marks an unexpected $100M loss on the loss on the qua


News » Technology/Innovation
Nigeria

July.31.2014

Nintendo Co. sank to a worse-than-expected loss for the fiscal first quarter on lagging Wii U and 3DS video-game machine sales.

But the Japanese company stuck to its annual forecasts Wednesday for a 20-billion yen (US$196-million) profit on 590-billion yen (US$5.8-billion) sales.

Kyoto-based Nintendo reported a 9.92-billion yen (US$97.3-million) April-June loss compared with an 8.62-billion yen profit a year earlier.

Quarterly sales totalled 74.695-billion yen (US$732.3-million), down 8% from a year earlier.

Nintendo has been fighting to maintain profits amid competition from games and social media apps on smartphones and other mobile devices. The company also faces competition from rivals Sony Corp. and Microsoft Corp., which are aggressively pushing their game machines with holiday shoppers.

Nintendo has also faced questions about the health of its president, Satoru Iwata, after he was a no-show at the Electronic Entertainment Expo in Los Angeles last month.

Last month, in a letter online to shareholders, he said he would miss the annual shareholders’ meeting as well and said for the first time that he had surgery for a bile-duct “growth,” found during a routine health checkup.

“I have already resumed my business by email and by other means, but it is anticipated that a little more time is needed for me to return to my regular work schedule,” Iwata said in the letter.

The success of Mario Kart 8 released in May is helping boost Wii U sales. Nintendo sold 510,000 of the machines for the April-June quarter, far better than 160,000 for the same period the previous year.

But Wii U has missed earlier sales targets.

Sales of the 3DS have plunged, dropping to 820,000 for the latest quarter from 1.4 million units a year ago.

Nintendo stuck to its latest target of selling 3.6 million Wii U and 12 million 3DS machines for the fiscal year through March 2015.

Nintendo said it will start offering strong game software in the months ahead, such asSuper Smash Bros. for Wii U.

The year-end and New Year’s seasons are important sales periods for the company, practically determining its fortunes for the whole year.

Nintendo is also launching “amiibo,” which are figures that connect and interact with games.

Article Credit: Fusiness.financialpost

Updated 3 Years ago
 

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Tags:     Nintendo Co.     Wii U     3DS Video Game     Sony Corp     Microsoft Corp.     President     Satoru Iwata    

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