Nintendo reveals loss in financial report

Nintendo has published its latest yearly financial report, and in the process revealed that their flagship console, Wii U, has sold well below expectations.

As you can see from the infographic below, the console sold just 6.17 million units, although the 3DS continued to perform well for the Kyoto-based company, with lifetime sales of the handheld now numbering 43.33 million.

That 6.17 million in Wii U sales represents units sold since the console launched at the end of 2012, although more than half of those were sold following launch, and only 2.72 million were sold in the last twelve months. Next year the company expects to shift another 3.6 million units.

It's looking altogether more healthy for the company's handheld, with the 3DS is expected to sell another 12 million units in the next 12 months.

Last year's profit (¥7.1 billion profit / $69.9 million) has slipped into loss (¥23.2 billion / $228.6 million) after the company posted revenue of ¥571.7 billion / $5.6 billion. That said, they remain optimistic ahead of next year's results, predicting increased revenue and therefore profit of nearly $200 million.

In terms of software, New Super Mario Bros. U (4.16 million) and Nintendo Land (3.09 million) are by far the best selling games on Wii U so far, whereas Pokémon X/Y managed more impressive numbers (12.26 million) on 3DS following its release last year.

Nintendo has issued a statement in response to the figures, that reads as follows:

In the belief that the true value of entertainment lies in individuality, Nintendo continues to provide unique products and services by positioning as its core management strategy the dedicated video game platform business of hardware and software integration, in which Nintendo can best leverage its strengths.

In addition, by introducing Nintendo Network IDs and taking advantage of smart devices, for example, Nintendo strives to strengthen its efforts to build a long-term relationship with its consumers and expand the market of its own platforms.

Moreover, by redefining entertainment as something that improves people's QOL (Quality of Life) in enjoyable ways, Nintendo aims to deploy a new platform business that improves people's QOL in enjoyable ways in a new field that is different from that of dedicated video game systems. The first theme will be health, and Nintendo plans to capitalize on being an entertainment company in devising a unique approach of its own.

In addition, Nintendo strives to utilize its abundance of character IP more actively, providing its IP with more exposure in places other than video games, while achieving a certain level of profit from its licensing business at the same time.

With its mission to pleasantly surprise consumers and put smiles on the faces of everyone it touches, Nintendo will continue to offer new and unique propositions and contribute to the development of the home entertainment industry.