Nintendo Reports Profits Despite Abysmal Wii U Sales

[ElYubiYubi]

Nintendo has just released their quarterly financial results and – despite poor Wii U sales – have recorded an overall profit between April and June 2013. The company has recorded a net sales earning of 81.5 billion yen (around £545 million), down from 84.8 billion yen in the same few months from 2012. Operating income saw a loss of just 4.9 billion (around $50 million/£33 million) compared to 2012′s results of 10.3 billion. Nintendo, then, saw an overall net profit of 8.62 billion yen (around $88 million/£58 million) this year, which is comparatively huge when you look at its 17.23 billion yen loss between April and June 2012.

Source

 

[chavosaur]

I though we already had this thread in the USN before?
It ended up with everyone screaming about the 3DS doing better, the Wii U being a piece of shit, and Emigre asking where all the Gaems were.

 

[gamefan5]

160,000 wiiU sold in 3 months?? Wow, that was lower than even the lowest of expectations.
We'll see how it will pick up steam in the coming months.
Kinda hilarious that the Wii sold more in that same time frame. XD

 

[heartgold]

3DS basically keeping the company upright, Wii U doomed.

 

[Foxi4]

#Sales ;O;

I though we already had this thread in the USN before?
It ended up with everyone screaming about the 3DS doing better, the Wii U being a piece of shit, and Emigre asking where all the Gaems were.

That's mostly because this is exactly what's going on - the 3DS sells like a cure for cancer, the WiiU still can't begin to compare to the Wii and gaems are still nowhere to be seen. ;O;

 

[McHaggis]

I though we already had this thread in the USN before?
It ended up with everyone screaming about the 3DS doing better, the Wii U being a piece of shit, and Emigre asking where all the Gaems were.

The financial reports were just published today, I believe. But yeah it smells a little bit like deja vu to me too.

 

[Bladexdsl]

i thought financial reports were classified not news and were banned from the USN

 

[Tom Bombadildo]

So where are all the gaemz?

 

[heartgold]

i thought financial reports were classified not news and were banned from the USN

Nah, some people use to post weekly poor Japanese Vita sales every week.

This is fine, it's a Q1 report from Nintendo.

 

[Foxi4]

Nah, some people use to post weekly poor Japanese Vita sales every week.

This is fine, it's a Q1 report from Nintendo.

The way I see it, sales are still not news. I'm willing to wager that 99.9% of GBATemp users are not Nintendo stockholders and this information brings nothing new to the table except an opportunity to poke fun at the Big N and their inability to market their latest system as a marriage between "core" and "casual" in the wake of the PS4's and the XBox One's release. It's in no way relevant to gamer interests.

 

[Taleweaver]

Yeeey, more sales!

And perhaps I'm cynical, but the title is wrong. It's not that they're making profit DESPITE abysmal wiiu sales, but THANKS TO. As you remember, nintendo sells the console at a loss. As such, their profits would actually be lower if ninty sold more copies.
And their main source of income is in games. Which they admit (again) isn't very high right now.

But all in all, I've got to admit this is very good news on all sides. The 3DS got a bad start as well, but now it's freakin' carrying nintendo. So yeah...they'll get there in the end. Popularity-wise, it will no doubt trail somewhere behind sony and microsoft...but I doubt it'll damage them in any way.

 

[heartgold]

The way I see it, sales are still not news. I'm willing to wager that 99.9% of GBATemp users are not Nintendo stockholders and this information brings nothing new to the table except an opportunity to poke fun at the Big N and their inability to market their latest system as a marriage between "core" and "casual" in the wake of the PS4's and the XBox One's release. It's in no way relevant to gamer interests.

Alright, just because it's a negative result, it shouldn't be posted. What if it's positive with Wii U flying high, no one could poke fun and would that be okay? I'm sure both M$ and Sony reports have been posted recently. Why are they allowed and this isn't?

IMO it's still interesting to know how hardware and software sales are selling. It may not have an impact on your actual gaming, but it's facts for anyone who's curious.

 

[Foxi4]

And perhaps I'm cynical, but the title is wrong. It's not that they're making profit DESPITE abysmal wiiu sales, but THANKS TO. As you remember, nintendo sells the console at a loss. As such, their profits would actually be lower if ninty sold more copies.

I still find that statement incredibly debatable, even though it was confirmed by Nintendo themselves. The tech inside the WiiU in no way justifies a loss at its current price point, but then again, a lot of money went into research and whatnot. Those "losses" will gradually melt away though and hopefully that'll mean a price cut for the WiiU, otherwise Nintendo has no chance at competing.

Alright, just because it's a negative result, it shouldn't be posted. What if it positive with Wii U flying high, no one could poke fun and would that be okay? I'm sure both M$ and Sony reports have been posted recently. Why are they allowed and this isn't?

IMO it's still interesting to know how hardware and software sales are selling. It may not have an impact on your actual gaming, but it's facts for anyone who's curious.

This isn't about whether the results are positive or negative or whether it's Nintendo or any other company - it's about whether this is news at all. A sudden turn from abysmal to fantastic is news because y'know, it's a development. "WiiU still selling poorly" isn't a development, it's a continuing trend which makes it "not news". That being said, neither of those are actually gaming news, but oh well. This isn't just limited to Nintendo - sales are generally not gaming news, they're news for stockholders.

 

[McHaggis]

The way I see it, sales are still not news. I'm willing to wager that 99.9% of GBATemp users are not Nintendo stockholders and this information brings nothing new to the table except an opportunity to poke fun at the Big N and their inability to market their latest system as a marriage between "core" and "casual" in the wake of the PS4's and the XBox One's release. It's in no way relevant to gamer interests.

Some people might be interested to know that the Wii U's poor sales aren't impacting the larger company too negatively (not sure of a better way to put that, it makes it sound like they shouldn't be too disappointed with how badly the Wii U is doing).

 

[Taleweaver]

Erm...when you say "the tech inside the wiiu in no way justifies a loss..." ...do you mean the whole package (mostly console and the gamepad combined)? I must admit I haven't given too much thought into the components used, but I don't see why they would want to lie about it.

 

[EzekielRage]

... they're making profit DESPITE abysmal wiiu sales, but THANKS TO. As you remember, nintendo sells the console at a loss. As such, their profits would actually be lower if ninty sold more copies. ..

that is just factually wrong. yes they sell at a loss BUT if they sell ONE game per ONE console they already make a profit, Reggie stated that a few times. And seeing how they sold almost ten times the amount of games than the console, your assessment would ONLY be true if they sell the consoles and NO GAME AT ALL which is silly because obviously nobody buys a console without games

 

[Foxi4]

Erm...when you say "the tech inside the wiiu in no way justifies a loss..." ...do you mean the whole package (mostly console and the gamepad combined)? I must admit I haven't given too much thought into the components used, but I don't see why they would want to lie about it.

Oh, I don't mean a downright lie - I'm sure it checks out as far as numbers are concerned. I'm just wondering what factors are concerned towards said loss. Economics 101 tells me that all the expenses towards WiiU research and preparing the manufacturing lines as well as other expenses outside of the actual hardware are accounted for as a "loss" and this "loss" is not permanent - it gradually shrinks. What I mean is that the hardware itself doesn't generate the losses, it's the road towards its creation that generated them.

Similarily the PS3 used to be $599 and now you can grab one for $250 - the tech has been perfected, the R&D has been covered so a considerable part of the original price was sliced. Now, mind you, it was sliced gradually (periodical price cuts with newer revisions and so on) but the mechanism itself still applies. The same will happen to the WiiU and I do hope that it happens relatively quickly before the console enters the realm of obscurity.

 

[Hop2089]

Well Nintendo has the 3DS and all and Dual Destinies sold over 200,000 copies so quite a few systems were bought for that game alone. I get the feeling the WiiU was stagnated on arrival.