Nintendo Loses $232M in Q1, Wii U Sales Drop to 220K, 3DS Sells 940K - News
by William D'Angelo , posted on 27 July 2016 / 19,874 Views
Nintendo had a weak start to its current fiscal year. Revenue fell 31 percent ¥61.7 billion ($585 million) during the quarter ending June 30, 2016. The gaming giant reported a loss of ¥24.5 billion ($232 million), down from a profit ¥8.3 billion ($78.7 million). That is the largest quarter one loss since 2011.
Revenue from hardware nearly fell by half from ¥44.6 billion to ¥25.1 billion ($238 million).
Wii U sales fell from 470,000 units a year ago to just 220,000. Nintendo 3DS sales remained more stable selling 940,000 units, down from 1.01 million units.
Software sales were up for both platforms. 8.5 million games were sold for the Nintendo 3DS, up from 7.9 million games sold. Games sold on the Wii U increased from 4.6 million to 4.7 million. However, software revenue declined from ¥44.4 billion to ¥34.9 billion ($331 million).
Smart devices and IP related income division saw an increase due to Miitomo. Revenue increased from ¥932 million a year ago to ¥1.6 billion ($15 million).
Looking ahead, quarter two sales are expected to be much higher due to the huge success of Pokémon Go. For the full fiscal year Nintendo expects to earn ¥500 billion ($4.7 billion) in revenue. That is only a one percent increase year-over-year.
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel dedicated to gaming Let's Plays and tutorials. You can contact the author at wdangelo@vgchartz.com or on Twitter @TrunksWD.
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Man, I don't even try to understand this stuff anymore. This all sounds like bad news, but I know somebody will come along and tell me that it's more complex than that, and this doesn't translate directly to profits, or that it's the share price that matters or... something else...
Isn't complex, Nintendo is preparing for the launch of a new system for next year, so the current invesment is higher than the incomes... that's why they are losing money..
Because it is more complex than that, that's why some people is gonna say you that.
How about you start selling more bundles for the New 3DS NOA? it's like you don't care about selling hardware this year, you are doing a terrible job.
We still haven't gotten a black new 3ds! and the two released white ones where in limited bundles sold only by scalpers now.
Seriously, wake up.
Hopefully the NX will return Nintendo to WII/DS like profit.
Well if the Wii U only sold 220k this quarter, then it is being massively overtracked on vgchartz (numbers are already sadly poor D:). Really hope things improve, but I'm having doubts.
Good. I hope they will fail even more next year because the Wii U blows. Nintendo is in trouble, seems like there are no more milk left in their Mario cash cow. Nintendo should embrace they are a software company and not a hardware company.
Not really cool to hope for a company to fail imo.
LMAO xbox troll
it isn't really all that good news. Unless PG is going to be a game that keeps on driving large amounts of revenue for multiple years this short term effect is nothing to get excited about. The hardware nosedive is a real problem. Let's not ignore that Nintendo's ongoing viability rests entirely on NX being successful. Pokemon Go is a curiosity, nothing more.
The 500 billion Yen revenue forecast is actually a 1% decrease (well, 0.9%) not an increase. It's also just a forecast. Last year they forecasted 570 billion Yen (a 3.7% increase), but the actual result was 504 billion (an 8.2% decrease).
I'm not sure I'd classify 500 billion Yen as healthy revenue. It would be their lowest result since fiscal year 2001. While their income forecasts are generally better than the past five years, prior to that you'd need to go back to the 80's to find Operating Income that low.
