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June 20, 2013





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Nintendo's losses narrow as 3DS margins improve
Nintendo's losses narrow as 3DS margins improve

July 25, 2012 | By Mike Rose
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    6 comments
More: Console/PC, Business/Marketing



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Nintendo was not able to turn its business around last quarter, posting notable (but reduced) losses.

The company admitted that, while sales of the Nintendo 3DS were "robust" in Japan, global 3DS hardware sales only reached 1.86 million units during the quarter, boosting the total number of 3DS handhelds sold up to 19 million.

Nintendo is confident in the performance of the handheld for the rest of this fiscal year, however, forecasting that the 3DS will sell 18.5 million units for the year up to April 2013.

It also noted that, while it is still selling the 3DS at a loss, that margin is improving. Nintendo began selling the 3DS at a loss last year after the hefty price cut on the hardware.

In terms of software, 3DS software sales topped 7.39 million during the quarter, bumping the overall figure up to 52.8 million units sold.

Elsewhere, the Nintendo DS sold 540,000 hardware units, although software units saw a boost to 8.48 million sold during the quarter thanks to the Japanese release of Pokemon Black and White 2, which has sold 2.45 million units to date.

In comparison, Nintendo Wii hardware sales topped 710,000 for the quarter, while Wii software saw a similar boost to the DS with 8.47 million software units sold, thanks to Mario Party 9 sales.

For the quarter ended June 30, 2012, Nintendo posted revenues of ¥84.8 billion ($1.09 billion), down 9.7 percent compared to ¥93.9 billion ($1.20 billion) year-over-year, and losses of ¥17.2 billion ($220.5 million), reduced compared to losses of ¥25.5 billion ($326.5 million) in the same quarter last year.

Update: Due to a misinterpretation, the original version of this story erroneously reported that Nintendo is no longer selling the 3DS at a loss versus its manufacturing cost. The story has been updated to fix this error.


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Comments


Andrew Traviss
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A few months ago would still be within the quarter ending June 30th, wouldn't it?

Francisco Javier Espejo Gargallo
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I don't get how it's Nintendo having looses with these numbers. Aren't they quite higher respect their rivals? And they're still loosing money? I don't get it at all...

Ian Uniacke
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It's just a perfect storm for nintendo. Some their own fault, some out of their control. But I think they will weather through this like they have in the past.

Adam Rebika
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And I think they're pouring a lot of money into the Wii U. The release timing is very thight for a home console, and it's their first time into HD.

Justin LeGrande
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I wonder how this factors into system repairs... I've had my 3DS repaired twice for 2 different reasons, which has come to a total of about US$100. Most of that money should be going towards the workers for their labor... so how much is spent procuring the parts for those workshops? In turn, how much are the people who produced those parts being paid within the supply chain?

Chris Melby
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That bites. My friend's battery died prematurely and my other friend's daughter busted his -- which I can't recall how.

Mine is still good though and I'm glad, because I'll be trading it in for an XL when they're released. :)


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