Nintendo just published its financial results for Fiscal Year 2014, and they don’t look overly positive, proving worse than what indicated by previous forecast modifications .
We also learn that the Wii U has sold 6.17 million units in its lifetime as of March 31st, while the 3DS reached the much more flattering amount of 43.33 million units. Wii U software sales now total 32.28 million, while 162.92 million 3DS games have been sold.
Hardware sales in fiscal year 2013 were 12.2 million for the 3DS and 2.7 million for the Wii U. In the past year 3DS software sales reached almost 68 million, while Wii U game sales stopped just short of 19 million.
Here’s the full breakdown of sales for hardware and software divided by model and region:
We also get some data about the sales performance of key titles as of March 31st:
The company promised to strive to continue providing key software titles for the 3DS in order to generate “robust profits.”
On the Wii U front, the press release mentions that Nintendo intends to focus on efforts to stimulate the platform, by providing games that take advantage of the GamePad, utilizing its built-in capabilities with near field communication. In addition to this, Nintendo DS virtual console titles to the line-up of the Wii U. The company will also “seek to enrich the value” of the GamePad itself, which is seen as the most important differentiating factor from the competition, and to proactively improve the digital distribution business via the eShop.
An extensive statement about the future management policies for the company was also made:
In the belief that the true value of entertainment lies in individuality, Nintendo continues to provide unique products and services by positioning as its core management strategy the dedicated video game platform business of hardware and software integration, in which Nintendo can best leverage its strengths. In addition, by introducing Nintendo Network IDs and taking advantage of smart devices, for example, Nintendo strives to strengthen its efforts to build a long-term relationship with its consumers and expand the market of its own platforms.
Moreover, by redefining entertainment as something that improves people’s QOL (Quality of Life) in enjoyable ways, Nintendo aims to deploy a new platform business that improves people’s QOL in enjoyable ways in a new field that is different from that of dedicated video game systems. The first theme will be health, and Nintendo plans to capitalize on being an entertainment company in devising a unique approach of its own.
In addition, Nintendo strives to utilize its abundance of character IP more actively, providing its IP with more exposure in places other than video games, while achieving a certain level of profit from its licensing business at the same time.
With its mission to pleasantly surprise consumers and put smiles on the faces of everyone it touches, Nintendo will continue to offer new and unique propositions and contribute to the development of the home entertainment industry.
The negative difference with the previous forecast was chalked to the fact that Wii U and 3DS hardware sales did not reach expected levels. The increase of operating loss was mentioned to be due to the increase in inventory write-down and higher research and development costs in addition to the decrease of net sales.
We also get some forecast for the current fiscal year, ending on March 31st 2015:
Nintendo predicts to sell 12 million 3DS units and 3.6 million Wii U consoles in FY 2014. On the software front the forecast is of 67 million 3DS games and 2 Million Wii U titles moved.
The overall results are pretty bleak, but it’s interesting to read about an increase in research and development expenses. It’s pretty obvious that Nintendo is gearing up for new hardware, and while we don’t know when it’ll be announced, it’ll definitely be interesting to see what it’ll come packed with.