updated 09:52 pm EDT, Thu July 31, 2014
Strong software sales couldn't halt Nintendo's continued poor performance
After a less-than-optimal performance at the end of the 2014 fiscal year, Nintendo is looking at a rough start to the beginning of its new fiscal year. The game console manufacturer reported that it posted an operating income loss of more than $92 million (9.47 billion yen) during its first quarter of the 2015 fiscal year. Weak console sales and fixed expenses are largely to blame for the loss.
The loss isn't nearly as steep as the results of the fourth quarter, which saw the company post a loss of $457 million. However, the loss is almost double of what was seen for the year-ago quarter. Nintendo posted an operating loss of $47 million (4.9 billion yen) on net sales of $793 million (81.5 billion yen) last year, marking the $92 million loss for the first quarter greater by nearly 92 percent. Net sales for 2014 were $726 million (74.6 billion yen).
Net income fared worse than operating income, as Nintendo saw a loss of 9.92 billion yen, or $96 million. The difference year-over-year is vast, considering last year a positive income was recorded of 8.62 billion yen, or $83 million. Net income per share for the 2015 quarter ending June 30 was a loss of 83.84 million yen, compared a 67.44 million yen increase in 2014.
Nintendo states that it sold a total of 8.57 million units of software for its handheld lines, consisting of the 3DS, 3DS XL and 2DS. Hardware for the DS line only reached 820,000 units, a drop from 1.4 million units during the previous year. Sales for the Wii U increased to 510,000, a year-over-year increase from 160,000.
Software sales were a high point for the company, especially due to the strong sales of Mario Kart 8 for Nintendo's console. Consumers flocked to the Wii U version of the game, tallying up 2.82 million units sold. Japan was only responsible for 590,000 copies, leaving the rest of the world responsible for about 2.24 million copies. Handheld software dropped to 8.57 million units, compared to 11 million for the 2014 year. Wii U software jumped year-over-year to 4.39 million from 1.03 million.
The company still has some large goals for the end of the year, expecting to sell 12 million handheld units and 3.6 million Wii U consoles. The forecast for the 2015 fiscal year remains at $389 million (40 billion yen).