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Nintendo Becomes Profitable Despite Continued Operating Loss

by Patrick Barnett - April 24, 2013, 9:43 am EDT
Total comments: 1 Source: Nintendo, http://www.nintendo.co.jp/ir/pdf/2013/130424e.pdf

Nintendo reports a small net profit after last year's larger loss.

The latest Nintendo financial results revealed the company has returned to profitability. Nintendo posted a 7.09 billion yen (around $71 million) net income for the fiscal year ending March 2013. This small net gain follows last year's net loss of 43 billion yen (around $430 million).

While the company posted a profit, their number fell short of the 14 billion yen net income prediction made at the end of January. The increased operating loss may have been the cause of Nintendo's failure to reach their income prediction. The 20 billion yen operation loss predicted in January became a 36 billion yen loss (around $360 million). The increase in this number was attributed to weak sales of both the 3DS and Wii U.

The Wii U has sold 3.45 million units worldwide as of the end of the fiscal year. At the end of 2012, Nintendo had already sold 3.06 million units of their newest home console. This means that throughout the first three months of 2013, only 390,000 Wii Us were sold worldwide.

The Nintendo 3DS on the other hand has managed to sell 13.95 million units of hardware in this fiscal year. 7.78 million of those units came in the form of the 3DS XL, which was released in North America last August. Nintendo is currently forecasting another 18 million 3DS sales in the coming fiscal year.

Talkback

CericApril 24, 2013

We all know why only 290,000 Units sold and Nintendo be a fool not to know.

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