Nintendo FY14 financial results
Nintendo has released their financial results for the fiscal year ending March 31st, 2014. Let’s not play around and keep it simple while getting to the numbers. Nintendo reports that 3DS hardware gained 12.24 million, while software gained 67.89 million. Also, Wii U hardware gained 2.72 million, while software had a strong 18.86 million. This brings the total lifetime sales of the 3DS to 43.33 million and the Wii U to 6.18 million.
So what do these numbers mean for Nintendo? Net sales decreased from 635.422 billion yen to 571.726 yen over last year, which led to a loss of 23.2 billion yen. ($229 million) Nintendo’s projections for the rest of the year have the 3DS moving another 12 million units and 67 million in software. The Wii U is projected for another 3.6 million in hardware and around 20 million in software. Overall, Nintendo projects revenues of 590 billion yen ($5.8 billion) and a net profit of 20 billion yen ($197 million)
Game Sales numbers
- New Super Mario Bros. U (4.16 million),
- Nintendo Land (3.09 million)
- Super Mario 3D World (2.17 million)
Below is Nintendo’s statement concerning these numbers.
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.