Back in October/November of 2011, it was announced that Nintendo was to post their first annual net loss in the company’s history. Today they released their earning report for the fiscal year that ended on March 31. Nintendo missed their annual sales goal of 647.6 million yen ($7.9 million) by 33% only making 43.2 million yen ($532K). This is a big difference from last year when they past their goal of 1.01 million yen ($12,496K) with a net profit of 77.6 million yen ($956K).
Nintendo states the reason for the loss is due to the early price slash for the 3DS and a strong yen (1¥=0.123¢, $1=81.17¥). The company also posted an operation loss of 37.3 billion yen ($458.7 million), an exchange loss of 27.7 billion yen ($334.5 million) and an ordinary loss of 60.8 billion yen ($747.8 million). These losses contribute to the company’s net loss totaling at 43 billion yen ($528.9 million).
This new fiscal year, Nintendo expects an annual sales figure of 820 billion yen ($10.16 billion) with a net profit of 20 billion yen ($248 million). Considering that they took a big loss this past fiscal year, these numbers look a bit ambitious. The reason for this is due to Nintendo banking on the sales of New Super Mario Bros. 2, Animal Crossing and the Wii U all coming out this new fiscal year.
Nintendo also shared their hardware and software forecast for this year, with last year’s numbers for comparison:
- DS: Hardware 2.5 million (5.1 million), Software 37 million (60.82 million)
- 3DS: Hardware 18.5 million (13.53 million ), Software 73 million (36 million)
- Wii: Hardware 10.5 million (9.84 million) , Software 70 million (102.37 million)
Nintendo however did not provide separate figures for the Wii U and lump those numbers with the Wii figures. To be honest, this sounds like that Nintendo has no confidence with Wii U to even post separate projected sales for the system. Maybe it’s a mix of what happened last year when showing off 3rd party games for the Wii U was revealed to be clips from the other systems, the fact that no one has yet seen what the new system looks like, and the fact that most gamers have been laughing at the name of the system. Whatever the case maybe, Nintendo has an uphill battle on their hands coming into E3 to convince gamers that Wii U is worthy of hype and their money.