Nintendo Records First Annual Profit Since 2011 Thanks To Weak Yen And New 3DS XL
Nintendo developed an unfortunate habit of posting losses for the most of the past several quarters, though for the first time since 2011, the company can call itself profitable on an annual basis again. Specifically, Nintendo recorded net income of 41.8 billion yen (around $350.6 million in U.S. currency) for its fiscal year ending March 31, compared to a loss of 23.2 billion yen (~$194.6 million) a year ago.
One of the keys to Nintendo's turnaround was the "depreciation of the yen against the U.S. dollar at the end of the period compared to the exchange rate at the end of the previous fiscal year," the company stated in its financial statement. Over 75 percent of Nintendo's sales came from outside of Japan, Nintendo added.
It also helped Nintendo's bottom line that the New Nintendo 3DS and New Nintendo 3DS XL "got off to a good start and continued to sell well." That helped offset sagging sales of previous 3DS consoles, which Nintendo said "did not grow as anticipated." As a whole, sales of the Nintendo 3DS family, including the 2DS, hit 8.73 million units.
Sales of the Nintendo's Wii U console reach 3.38 million units, coming up a bit short of the 3.6 million units Nintendo had forecast back in January. On the software side, Wii U titles hit 24.4 million units, with Mario Kart 8 accounting for 5.11 million units and Super Smash Bros for Wii account for 3.65 million units.
Interestingly, Nintendo didn't share figures for its Amiibo line of collectible figures. Armed with NFC support, Amiibos unlock certain in-game functions and bonuses, depending on the title, and have proved incredibly popular. Many Amiibos are in short supply, like the Gold Mario, a Walmart exclusive.
"We aim to stimulate demand for "amiibo" by expanding compatible software titles and by releasing the Nintendo 3DS NFC Reader/Writer accessory for Nintendo 3DS, Nintendo 3DS XL and Nintendo 2DS," Nintendo said.
Nintendo also expects to generate a new source of revenue from an unspecified gaming application for smart devices, which it plans to release later this year.
One of the keys to Nintendo's turnaround was the "depreciation of the yen against the U.S. dollar at the end of the period compared to the exchange rate at the end of the previous fiscal year," the company stated in its financial statement. Over 75 percent of Nintendo's sales came from outside of Japan, Nintendo added.
It also helped Nintendo's bottom line that the New Nintendo 3DS and New Nintendo 3DS XL "got off to a good start and continued to sell well." That helped offset sagging sales of previous 3DS consoles, which Nintendo said "did not grow as anticipated." As a whole, sales of the Nintendo 3DS family, including the 2DS, hit 8.73 million units.
Sales of the Nintendo's Wii U console reach 3.38 million units, coming up a bit short of the 3.6 million units Nintendo had forecast back in January. On the software side, Wii U titles hit 24.4 million units, with Mario Kart 8 accounting for 5.11 million units and Super Smash Bros for Wii account for 3.65 million units.
Interestingly, Nintendo didn't share figures for its Amiibo line of collectible figures. Armed with NFC support, Amiibos unlock certain in-game functions and bonuses, depending on the title, and have proved incredibly popular. Many Amiibos are in short supply, like the Gold Mario, a Walmart exclusive.
"We aim to stimulate demand for "amiibo" by expanding compatible software titles and by releasing the Nintendo 3DS NFC Reader/Writer accessory for Nintendo 3DS, Nintendo 3DS XL and Nintendo 2DS," Nintendo said.
Nintendo also expects to generate a new source of revenue from an unspecified gaming application for smart devices, which it plans to release later this year.
