Nintendo has today revealed its financial results for the 2014 / 2015 year, which have delivered profits as expected from its previous projections in its Q3 results. The results are an improvement over the projections previously given, primarily due to yen depreciation and streamlined business rather than sales, which fell slightly below expectations. The overall picture shows a year that allowed Nintendo to keep its solid finances together.
To begin with the nuts and bolts of the financial figures — covering 1st April 2014 to 31st March 2015 — we have a net income profit of 41.8 billion Yen, which amounts to around $350 million / £230 million / €308 million. The core business of making and selling products also brings an operating profit of 24.7 billion Yen, which is roughly $207 million / £136 million / €182 million; this is a notable increase on expectations despite narrowly missing sales targets, highlighting how Nintendo was able to make the most of the sales it did achieve. The financial report says the following regarding the figures, providing sales updates on key releases:
During the fiscal year ended March 31, 2015, for "Nintendo 3DS (3DS, 3DS XL, 2DS, New Nintendo 3DS and New Nintendo 3DS XL)," "New Nintendo 3DS/New Nintendo 3DS XL," launched as the newest members of the "Nintendo 3DS" family, got off to a good start and continued to sell well, while the sales of the "Nintendo 3DS" hardware prior to the launch of "New Nintendo 3DS/New Nintendo 3DS XL" did not grow as anticipated, and the global sales of the "Nintendo 3DS" family hardware were 8.73 million units. As for the "Nintendo 3DS" software, "Pokémon Omega Ruby/Pokémon Alpha Sapphire" and "Super Smash Bros. for Nintendo 3DS" enjoyed robust sales with 9.94 million units and 6.75 million units sold respectively, while titles such as "Tomodachi Life," "Mario Kart 7," and "The Legend of Zelda: Majora's Mask 3D" also showed steady sales, with all three titles selling more than 2 million units each. There were also a number of hit titles from third-party publishers. As a result, the global sales of the "Nintendo 3DS" software were 62.74 million units. With respect to "Wii U," Nintendo released two hit titles, "Mario Kart 8" and "Super Smash Bros. for Wii U," which enjoyed robust sales of 5.11 million units and 3.65 million units respectively. These titles continued to perform well especially overseas, and the global sales of the "Wii U" hardware and software reached 3.38 million and 24.40 million units respectively.
In terms of the coming year — 1st April 2015 to 31st March 2016 — Nintendo estimates continued profit and improved sales: a 3.7% increase is expected in net sales, with an operating profit of 50 billion Yen, around $419 million / £275 million / €368 million, and a net income profit of 35 billion Yen, roughly $293 million / £193 million / €258 million. The strategies outlined include more major releases, DLC and "a gaming application for smart devices" through its partnership with DeNA.
Moving on to hardware and software sales, sales targets were missed for both the Wii U and 3DS, though in the case of the Wii U it wasn't far off its modest goals. The 3DS dipped compared to the previous year, though the Wii U beat its sales equivalents from 2014.
Also of note are the hardware sales projections for the coming year, which are down for the 3DS and still modest for the Wii U. Figures are below.
Hardware Sales (financial year) — 3.38 million units
Hardware Sales (life to date) — 9.54 million units
Hardware Sales Projection (2014 to 2015) — 3.4 million units
Software Sales (financial year) - 24.4 million units
Hardware Sales (financial year) — 8.73 million units
Hardware Sales (life to date) — 52.06 million units
Hardware Sales Projection (2014 to 2015) — 7.6 million units
Software Sales (financial year) — 62.74 million units
Hardware Sales (financial year) — 460,000 units
Hardware Sales (life to date) — 101.52 million units
Hardware Sales Projection (2014 to 2015) — 100,000 units
Software Sales (financial year) — 11.73 million units
The 3DS market is projected to dip in both hardware and software sales in this coming year, with the portable family losing steam as it approaches five years old in 2016. As for Wii U, its hardware and software expectations aren't far off what was achieved in the past year, suggesting that Nintendo expects to maintain its sales levels, but not to significantly boost its overall prospects. After last year's bold 3DS predictions unknowingly prepared us for the New Nintendo 3DS, these modest projections are slightly disappointing in that context.
We'll provide more detailed coverage throughout the day, but let us know what you think of these figures in the comments below. Are you happy to see Nintendo back in the black, or disappointed by modest sales predictions for the coming year?
Image credit: leavelucktogames