Nintendo reports FY14 financial results
Nintendo’s latest financial results are in. The company has reported its financial results for the fiscal year ending March 31, 2014.
First, let’s talk about system sales. Global sales of 3DS hardware and software sales hit 12.24 million and 67.89 million respectively during the fiscal year, Nintendo says. Wii U hardware and software sales came in at 2.72 million and 18.86 million units respectively.
In total (life-to-date), 3DS hardware sales stand at 43.33 million sold while Wii U stands at 6.18 million. Nintendo is forecasting an additional 12 million 3DS units (67 million for software) and 3.6 million Wii U units (20 million for software) for the coming year.
Net sales decreased from 635.422 billion yen to 571.726 yen compared to the previous fiscal year. Nintendo experienced a gross profit of 163.2 billion yen. Additionally, the company has reported an operating loss of 46.4 billion yen and a net loss of 23.2 billion yen.
Lots of additional financial data can be found here. You can also find an outlook for the next fiscal year covering Wii U/3DS after the break.
For “Nintendo 3DS,” its consolidated global hardware sales reached 43 million units, which represent a sufficient installed base upon which to expand software sales. In terms of software, “Mario Golf: World Tour” was released in May globally. Also, “Tomodachi Life,” a title that sold 1.85 million units on a cumulative basis in the Japanese market, in which players can enjoy watching over the carefree daily lives of the virtual characters (Miis) of themselves and those close to them, will be released in the United States and Europe in June. Also, “Super Smash Bros. for Nintendo 3DS” will be released globally in the upcoming summer. By continuing to provide key titles throughout the next fiscal year, too, Nintendo will strive to generate robust profits from the “Nintendo 3DS” platform business.
Regarding “Wii U,” which still faces a challenging sales situation, Nintendo will focus on efforts that seek to stimulate the platform. By providing software that takes advantage of the “Wii U GamePad,” utilizing its built-in functionality as an NFC reader/writer, and adding “Nintendo DS” Virtual Console titles to the “Wii U” software lineup, Nintendo will seek to enrich the value of the “Wii U GamePad,” the most important differentiator of “Wii U,” and as a result expand the sales of the “Wii U” platform. In terms of compatible software, by positioning “Mario Kart 8,” scheduled to be released globally in May, and “Super Smash Bros. for Wii U,” scheduled to be released this winter, as two main drivers, both of which are titles that a wide range of consumers can enjoy either alone or with other players, Nintendo will seek to supply high quality games on a continuous basis. Moreover, Nintendo will also strive to proactively pursue its digital distribution business
through the “Nintendo eShop.”
Based on these efforts, we project for the fiscal year ending March 31, 2015 net sales of 590.0 billion yen, an operating income of 40.0 billion yen, an ordinary income of 35.0 billion yen and a net income of 20.0 billion yen. Unit sales of the major products used for the forecast are listed on page 15 under the heading of “(5) Consolidated sales units, number of new titles, and sales units forecast” in the “Others” section. Exchange rate assumptions for the major currencies used for the forecasts are 100 yen per U.S. dollar and 140 yen per euro.