Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Personal Tech
Fiercely productive scanners
Average Rating:
Rate this article:  
Nintendo Profit Falls on Sluggish Wii U Sales
Nintendo Profit Falls on Sluggish Wii U Sales

By Yuriko Nagano
January 30, 2014 9:29AM

    Bookmark and Share
Game company Nintendo has released its financial earnings for the first nine months of the fiscal year, and once again, there appears to be trouble in Mario land. Nintendo reported 30 percent less profit than a year ago. The popularity of smartphones, tablets and other gadgets has been drawing consumers away from consoles devoted to games.
 

Related Topics

Nintendo
Wii
Wii U
Stock Market



Profit at Nintendo Co. fell 30 percent in the first nine months of the fiscal year as sales of Wii U home consoles, 3DS devices and game software languished. Top executives announced they would take pay cuts.

The Japanese maker of Super Mario and Pokemon video games reported Wednesday a 10.2 billion yen ($99 million) profit from April to December, down from 14.55 billion yen a year earlier. It did not break down quarterly numbers.

Nintendo's president, senior managing director, managing director and directors said they will take a pay cut for five months starting in February to take responsibility for the poor performance.

President Satoru Iwata's pay will be halved, two representative directors including reputed game creator Shigeru Miyamoto, were hit with a 30 percent cut. The other seven board members will lose 20 percent of their pay, according to the company.

The popularity of smartphones, tablets and other gadgets has been drawing consumers away from consoles devoted to games. Nintendo has resisted changing its business to incorporate such devices.

"It would be a positive surprise if Nintendo comes out with an online game strategy for smartphones, although the market doesn't expect that move," said Tomoaki Kawasaki, senior analyst at IwaiCosmo Securities Co.

Consumers will still buy Nintendo games if they are wowed by them, but that hasn't been happening, he said.

The Kyoto-based company this month forecast a loss of 25 billion yen ($242 million) for the fiscal year through March 2014. It had earlier forecast a profit of 55 billion yen ($532 million). Nintendo had profit of 7 billion yen last fiscal year.

Nintendo slashed its annual forecast for Wii U sales from 9 million units to just 2.8 million, fewer than a third of its earlier estimate.

The company said it sold 2.4 million units in April through December, a slower pace than 3 million units in the same period of 2012.

"In the fourth quarter, we expect sales to decrease significantly due to seasonal factors as the year-end sales season concludes," Nintendo said in a statement.

Nintendo also cut the sales forecast for its hand-held 3DS video game devices to 13.5 million units from 18 million units for the fiscal year.

The company is expecting software sales to struggle as well.

Nintendo's philosophy is to take the road less traveled and "they have been steadfast in sticking to that strategy," said Eiji Maeda, senior analyst at SMBC Nikko Securities Inc.

Nintendo hits a home run once in a while, said Maeda, noting that the Wii and DS devices were hits.

The weak yen, which is generally a plus for exporters such as Nintendo, was not enough to offset the damage from sluggish sales. Nintendo racked up a foreign exchange gain of 48 billion yen ($465 million) during the first three quarters, more than double the same period the previous year.
 


© 2014 Associated Press/AP Online under contract with NewsEdge. All rights reserved.
 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Personal Tech
1.   Amazon 3D Smartphone Pics Leaked
2.   Why Netflix Got So Blazingly Fast
3.   Study: Samsung Phone vs. iPhone
4.   Criterion Extends Hulu Streaming Deal
5.   iPad Hacker Conviction Overturned


advertisement
BlackBerry Drops T-Mobile After Spat
Moving on to other carriers after snub.
Average Rating:
Android Wear on Tap for Wearables
OK Google, what's really new here?
Average Rating:
Is Zuckerberg Nuts To Buy Oculus VR?
$2 billion deal for unproven company.
Average Rating:


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
IBM Offers Security, Disaster Recovery as SoftLayer Service
New disaster recovery and security services for SoftLayer clients are being added by IBM. Big Blue said the new capabilities will speed cloud adoption by alleviating concern over business continuity.
 
How To Beat the Heartbleed Bug
Heartbleed headlines continue as IT admins scramble for answers no one has. Early reports of stolen personal data, including 900 social insurance numbers in Canada, are starting to trickle in.
 
After Heartbleed, OpenSSL Calls for More Support
The president of the OpenSSL Foundation says more support is needed from companies and governments that use its software so that it can better spot and fix flawed pieces of code such as Heartbleed.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
Google Glass may find its first markets in verticals in which hands-free access to data is a boon. Medicine is among the most prominent of those, as seen in a number of Glass experiments under way.
 

Mobile Technology Spotlight
Amazon 3D Smartphone Pics Leaked
E-commerce giant Amazon is reportedly set to launch a smartphone after years of development. Photos of the phone, which may feature a unique 3D interface, were leaked by tech pub BGR.
 
Zebra Tech Buys Motorola Enterprise for $3.45B
Weeks after Lenovo bought Motorola Mobility’s assets from Google for $2.91 billion, Zebra Technologies is throwing down $3.45 billion for Motorola’s Enterprise business in an all-cash deal.
 
CTIA Caves, Volunteers Kill Switch Plan
After bucking against the concept of a smartphone kill switch, the CTIA just announced the “Smartphone Anti-Theft Voluntary Commitment” to thwart smartphone thefts in the U.S.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.