Nintendo has now revealed its financial results for Q2 of the 2015 / 2016 year, which cover the typically quiet period between 1st April and 30th September. The outcome is positive with profits and reasonable momentum, with the added outcome that Nintendo is sticking to its financial and sales forecasts for the year.
To begin with the main figures for the six month window we have a net income profit of 11,466 million yen, which amounts to around $95.2 million / £62.2 million / €86.2 million; that's an increase over the Q1 results. Sales are up over the equivalent period from last year, while the core business of making and selling products also brings an operating profit of 8,977 million Yen, which is around $74.5 million / £48.7 million / €67.5 million; that's a notable increase over a small operating profit for Q1 alone.
The solid results are largely attributed to major titles released and the continuing strong momentum of amiibo, with the range's cards showing "strong initial sales"; Animal Crossing: Happy Home Designer, Super Mario Maker and Splatoon are cited as titles performing well, while in Japan credit is paid to games like Fire Emblem Fates (known as Fire Emblem: If in the country).
Notably, Nintendo is sticking to its sales and profit projections for the year, re-affirming that a smart device game is still coming this financial year.
For Nintendo 3DS, The Legend of Zelda: Tri Force Heroes was released globally in October, Mario & Luigi: Paper Jam will be released in December for Japan and Europe, Pokémon Super Mystery Dungeon is scheduled for release in November for the United States and in early 2016 for Europe. Furthermore, a number of key titles from third-party publishers are scheduled for release. With such activities, we aim to further expand the Nintendo 3DS business.
For Wii U, by maintaining the attention level of Super Mario Maker and Splatoon, which have brisk sales, we will strive to further enhance the sales toward the year-end sales season. Animal Crossing: amiibo Festival, which is played using amiibo, will be released globally in November, and titles such as Mario Tennis: Ultra Smash and Star Fox Zero will be released sequentially.
Meanwhile, for amiibo, with its lineup becoming increasingly enhanced, we aim to further grow the sales by releasing a new figure type of Animal Crossing characters, which will be launched simultaneously with Animal Crossing: amiibo Festival in November. In Japan, the second series of Animal Crossing amiibo cards will launch in October.
In addition, a gaming application for smart devices is scheduled for release.
Those financial targets then, for the record, remain at an operating income 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.
Shifting focus to hardware and software sales figures you can see some of these below; Nintendo is sticking with the targets it set back in early April.
Wii U
Hardware Sales (Q1 + Q2) — 1.19 million units
Hardware Sales (life to date) — 10.73 million units
Hardware Sales Projection (2015 to 2016) — 3.4 million units
Software Sales (Q1 + Q2) — 12.37 million units
3DS
Hardware Sales (Q1 + Q2)) — 2.28 million units
Hardware Sales (life to date) — 54.34 million units
Hardware Sales Projection (2015 to 2016) — 7.6 million units
Software Sales (Q1 + Q2) — 19.2 million units
Wii
Hardware Sales (Q1 + Q2) — 70,000 units
Hardware Sales (life to date) — 101.59 million units
Hardware Sales Projection (2015 to 2016) — 100,000 units
Software Sales (Q1 + Q2) — 1.97 million units
Overall there's a sense of 'business as usual' with these results, which compared to previous years shows welcome stability. It seems that major releases are driving decent hardware sales too, with both 3DS and Wii U hardware out-performing the equivalent sales for the last financial year; in the case of the portable the New Nintendo 3DS has no doubt been vital to that. 3DS software sales are down compared to last year though, but there's a hefty increase of nearly three million in those Wii U game sales.
We suspect Nintendo will be pleased with the outcome as it looks ahead to a vital period to come.
[source nintendo.co.jp]
Comments 46
Good job for the Wii U (it not huge but it's doing abit better)
1.19 million consoles in 6 months is dreadful.
Woo hoo! 3ds on 54 million sales lifetime!
Splatoon has sold 2.42 million copies worldwide as of September 30th, while Super Mario Maker has sold 1.88 million copies and AC HHD has sold 2.02 million copies.
Awesome sales for Splatoon!
On a side note, Genei Ibun Roku #FE is now listed as "2016" for the US. I believe it was previously listed as "Spring 2016."
"driving decent hardware sales"
how can you call it decent hardware sales when it appears that their humble targets will be missed if the same amount will be sold on the 3rd and 4th Quarter
Edit: I mean 3rd and 4th quarter. Man, im spacing out today
Other updated life to date sales (as of Sept. 30th):
Pokemon X/Y: 14.15 million
Mario Kart 7: 12.19 million
Pokemon ORAS: 10.69 million
Super Mario 3D Land: 10.21 million
NSMB2: 9.47 million
Animal Crossing New Leaf: 9.44 million
Smash 3DS: 7.37 million
Luigi's Mansion Dark Moon: 4.61 million
Tomodachi Life: 4.48 million
Zelda Ocarina of Time 3D: 3.82 million
Mario Kart 8: 5.87 million
Nintendo Land: 5 million
NSMBU: 4.88 million
Super Mario 3D World: 4.47 million
Smash Wii U: 4.03 million
@IceClimbers There are an awful lot of developers that wished they had those kind of software sales on platforms that have sold over 25 million systems. They aren't doing so bad
Just checked the documents on the Japanese website and they are still listing Project Guard as coming out this year, but there has been nothing about it.. Giant Robot and Zelda are listed as TBA.
@Tubalcain Last year, the Wii U shipped 1.12 million units in Apr-Sep period.
While it's all but impossible for Nintendo not to miss their target given their holiday line-up, it's still up year-on-year (1.19 million).
@Tubalcain: 4th quarter is always the strongest. It is entirely plausable that they will sell half their sales during the 4th quarter. But it isn't especially good figures for either of their consoles.
@Tubalcain Q1 + Q2 are always the quietest periods, and Nintendo hasn't adjusted its targets down (which it has done in the past)
@everyone I still find it extremely doubtful that they can ship more than 2.2 Million units in 6 months. that's like almost selling an equivalent of 20% of the WiiU lifetime sales in half a year!
@IceClimbers It's crazy to think that Mario Kart 8, arguably one of the best Mario Karts, has an attach rate of over 50% yet it's it's still one of the worst selling Mario Karts of the series. Do you happen to know where Wind Waker HD lands on this? And if it mentions if those numbers were sold copies or the download copies from the Mario Kart bundle of last year.
@Tubalcain
Last year 65% of the Wii U's hardware sales were in that half of the year. They're literally just predicting that the same thing will happen again this year. Which isn't an outlandish prediction given that the same thing happens for every gaming console......
Well, it's profit so that's good! and Splatoon and SMM will shift a lot of systems this Xmas I think.
My 6yo nephew is screaming out for a WiiU past year. In two minds weather to get him one or not. I'll have a word with his dad cause like, that's something the parents would buy for him for Christmas, not an uncle lol.
Anyway, looks better now than it did last year for Nintendo. Those software sales numbers are crazy amazing good.
Release rhythm heaven 3ds.
@cfgk24 I expected to reach 60 million, but I guess for now it'll do.
I think holiday sales will be down on last year but they should definitely hit the Wii U target. I believe they usually sell over a million on November + December for North America alone. Everything gets huge bumps in the holiday season. Sony sold 6.4 million PS4s in the quarter last year.
At least the profit margins are positive. I just wish the total amount earned was higher. Hopefully the NX will help Nintendo return to the huge profits they are used to.
Still no release date for Paper Jam in the U.S. then ? It feels like the WiiU ltd sales have been stuck at 10 million for a year now. Splatoon is a bonafide hit for Nintendo. Congratulations on a successful new IP !
Lifetime Software Attachrate
WiiU ~ 6,44
3DS ~ 4,51
Wii ~ 8,97
DS ~ 6,15
GCN ~ 9,59
GBA ~ 4,63
N64 ~ 6,83
GB ~ 4,22
SNES ~ 7,72
NES ~ 8,08
Homeconsoles ~ 8,25
Handhelds ~ 5,07
Source http://www.nintendo.co.jp/ir/en/sales/hard_soft/index.html
@Sinister very interesting thanks for posting
@Sinister I wonder how much of that high GameCube attach rate is due to the system hitting $99 at about the same time it had a really strong budget Players Choice line-up of Super Mario Sunshine, SSBM, Star fox Adventures and Luigi Mansion. I bought all 4 of those games when GameCube hit that price, alongside my Gamecube. Was about $200 for everything.
@ninty4thewin Wii Mini is still on the shelf in Target. Saw one last week. And Walmart has them available on their website. I'm guessing they count Wii Mini as Wii sales. At $99 with Mario Kart I'm guessing parents still buy them for kids.
http://www.walmart.com/ip/Nintendo-Wii-Mini-Red-with-Mario-Kart/30913801
@shigulicious I feel like we were told Wii U hit 10.73 Million back in Jan after the holidays. Though maybe it hit 10.37 million and my dyslexia is kicking in? Or maybe the holiday 10 million number was "shipped" and this number is "sold"? Any way they slice it, yes, 10 million forever, the thing isn't shipping or selling. I wonder when the last time was they manufactured any? After selling 20 million Wii a year for 5 years they probably made 10 million WiiU the first year slone. Hence no price cut as the consoles they have all cost the same to make, no savings. That's just my theory.
@Tsurii @Tubalcain They can probably get, 2 million over the holidays if they have a Nintendo Direct next week and drop the Wii U price to $199 ahead of Mario Tennis and Animal Crosding:amiibo Festival. The price drop is long overdue and we all know it. Though they'll probably only go to $249 but that should get them close to that number as retailers will then sell it for $199 during Black Friday weekend.
If NX were to release at the end of 2016 they might as well sell Wii U for $199 now before nobody wants one at any price and they all wind up clearanced out.
It seems two high quality and original games can work wonders for stabilising sales. Not great obviously, but respectable at least.
@Mijzelffan It's so, so good. I'm enjoying the heck out of it.
This article has such a sunny outlook title:
"Nintendo Reports Profits as System Sales Show Positive Momentum"
but when I look at my Yahoo financial app this morning these are the headlines I see:
"Nintendo Profit Misses Estimates as 3DS Player Struggles"
"Nintendo second-quarter profit dips, keeps outlook on smartphone plans"
Not sure how to view this news myself but I guess it falls somewhere in the middle as Nintendo continues it's cone of silence DeNA and NX holding pattern. Maybe the information dam will burst soon.
"
@rjejr
I agree wholeheartedly, there is way too much positive spin on this. Sure they made a profit, but hardly from Wii U sales. A million consoles in 6 months is absolutely pathetic. The high sales of software only indicate that only hardcore Nintendo fans bought the system. If I were at that meeting, I'd point that out as a serious problem. Something that needs to be rectified with the NX.
I can't blame the 3DS for struggling too, there hasn't been much software to drive the thing lately. If I were in a significant position at Nintendo, I'd be seriously concerned with the Holiday lineup.
Thing is, the Wii U is on 10.73 million units worldwide as of 30/9/15, but it does always make me wonder, because it takes a month to get these results and announce them; meaning that we are now on the 28/10/15, and with people starting to really do their Christmas shopping from October onwards, there is a very strong possibilty that they could potentially already be closing in on the 11 million units sold worldwide technically, as they obviously aren't counting the past 28 days worth of sales.
Not that sales bother me I should point out. I buy games and consoles to enjoy, not analyze everything about them and their respective developers and their financial situation.
@rjejr I agree, to much positive spin. Im a stockholder and im disappointed with their missed profit margins. The profits are so tiny that nintendo cant even declare proper dividends. I may as well sell my shares since its no longer worth anything as a dividend investment.
I'm liking these results but it still REALLY irks me that they're pulling another Woolly World with Paper Jam...Woolly World lost so much hype due to that stupid release gap in my opinion
@Tubalcain @MoonKnight7
Why's everybody agreeing w/ me, all I said was - "Not sure how to view this news myself but I guess it falls somewhere in the middle..."
The headlines were different though. I follow the markets ,but understanding all the financial tuff is a bit above my pay grade.
Nintendo stock is down 2.2% today among an otherwise up US market. I think it was down 2% yesterday as well. President better say something good tonight. Tomorrow. Whenever he next says something.
@rjejr
Lol, I am agreeing with the line, "This article has such a sunny outlook title: 'Nintendo Reports Profits as System Sales Show Positive Momentum'"
'Positive Momentum'? Hardly. Selling 1 million Wii U's in 6 months is a dreadful figure. It's clearly just Nintendo fans buying the products, that's why their other ventures have been more positive, i.e. Mario Maker, Splatoon and amiibos.
That's not really positive momentum, it's more, stopping the bleeding.
It's good to know we get sales numbers on a system not called PS4.
Wii U is currently ~10.73M
Xbox One last sales update was 10M, Microsoft hasn't released any more numbers on it's sales (not even in last week's quarterly report).
So the question is Wii U beating Xbox One?
If they can sell 2 million wiius over the holidays, they should reach their target. If not, it looks though the wii maybe the only console to reach its target
The Wii U really needs a price cut for Christmas!
@Tubalcain
Nintendo sold around 2 million Wii U's last year during the holiday season alone- they can certainly do it again, if not a little more, especially since sales have improved year over year over year.
Optimistic headlines for humble numbers.
You can have positive momentum and miss estimates. I'm actually impressed with how the Wii U has been holding on. It's with 2 games, basically. Great games, but also unprecedented games. I expected it to dip. Essentially holding steady is much better than dropping fast.
And I don't know how anyone can say it's just dedicated fans buying Wii U for Splatoon, a completely new IP, or even buying at all right now. What kind of dedicated fan buys a console almost 3 years into its life?
Perfect time for a price drop, though, as games are still selling well but console sales have leveled off and the competition has come way too close in price. Let's see it drop all the way to $199. Maybe @rjejr 's original manufacturing deal is finally up.
@Xenocity
"So the question is Wii U beating Xbox One?"
Unless you meant to end that sentence with "... in Japan?" this is a hilarious and obscenely optimistic question.
@aaronsullivan
"And I don't know how anyone can say it's just dedicated fans buying Wii U for Splatoon, a completely new IP, or even buying at all right now. What kind of dedicated fan buys a console almost 3 years into its life?"
I'm a dedicated fan, and I couldn't buy the Wii U right away. Just cause you're a dedicated fan does not just throw out that particular question. Not everyone can buy it on day one. So the question remains then, who is buying it? Well, certainly not many other people, looking at those dreadful numbers. The high game attach rate, does spell out that very scenario that it really is mostly dedicated Nintendo fans. Really though, without any third party support, what else could they be?
@Tubalcain Have you heard of Christmas?
Nice to see continued profits. Less doom and gloom articles!
@MoonKnight7
I was referring to total global sales, since Microsoft hasn't released any Xbox One sales numbers since they hit the 10M mark.
I'm not being optimistic or pessimistic on it, just wondering with the Xbox One sales are since Microsoft refuses to release them.
Show Comments
Leave A Comment
Hold on there, you need to login to post a comment...