Nintendo returns to profit on weak yen boost

Apr 24, 2013 by Yuri Kageyama
In this Feb. 15, 2013 file photo, visitors try out the Mario Kart Arcade GP DX racing game exhibited by Namco Bandai and Nintendo on the business day of the Japan Amusement Expo in Makuhari, near Tokyo. Nintendo Co. reported Wednesday, April 24, the Kyoto-based maker of Super Mario and Pokemon games returned to profit for the fiscal year ended March 31 as a lift from the weak yen offset sales struggles caused by software delays for its latest home console Wii U. (AP Photo/Koji Sasahara, File)

Nintendo Co. returned to profit for the fiscal year ended March 31 as a lift from the weakening yen offset sales struggles caused by software delays for its latest home console Wii U.

The Kyoto-based maker of Super Mario and Pokemon games reported Wednesday an annual profit of 7.1 billion yen ($72 million), a reversal from a 43 billion yen loss the previous year.

Annual sales dipped 1.9 percent to 635.4 billion yen ($6.4 billion).

Both profit and sales results were slightly worse than the projections of analysts surveyed by FactSet.

The dollar has been trading at 95 yen levels in recent months, and is now above 99 yen, up dramatically from 80 yen a year earlier—a boon for Japanese exporters like Nintendo.

Nintendo gained 39.5 billion yen ($399 million) from a favorable exchange rate for the year.

Nintendo expects profit to balloon to 55 billion yen ($555 million) this fiscal year ending March 2014. It did not break down quarterly results.

Still, Wii U sales at 3.45 million units fell short of Nintendo's target for the fiscal year of 4 million units.

That had been lowered from an earlier more optimistic projection of 5.5 million units.

The Wii U, which went on sale late last year, was the first major new game console to arrive in stores in years.

Game machines have lost some of their appeal with the arrival of smartphones that also offer gaming, and other pastimes such as social networking that are vying for people's leisure time.

In this Jan. 31, 2013 file photo, Nintendo Co. President Satoru Iwata speaks during a news conference in Tokyo. Nintendo reported Wednesday, April 24, the Kyoto-based maker of Super Mario and Pokemon games returned to profit for the fiscal year ended March 31 as a lift from the weak yen offset sales struggles caused by software delays for its latest home console Wii U. (AP Photo/Koji Sasahara, File)

Nintendo has repeatedly boasted it appeals to so-called casual gamers, unlike its rivals Sony Corp. and Microsoft Corp. But those are precisely the people who may be switching to playing games on other devices.

Sony is promising the PlayStation 4 before the year-end holidays, a critical sales period for game makers. Microsoft may also have a new home console.

Nintendo acknowledged it had failed to keep the momentum going on the Wii U because of a lack of game software, and promised to do better in the latter half of the year.

Nintendo posted its second straight annual operating loss, reporting 36 billion yen ($364 million) of red ink for the fiscal year ended March.

Explore further: New iPhones deliver big profits for Apple (Update)

not rated yet
add to favorites email to friend print save as pdf

Related Stories

NEC swings to quarterly net profit

Jan 31, 2013

Japanese information technology firm NEC said Thursday it had swung to a net profit in the October-December quarter, thanks in part to improved sales in defence systems and mobile networks.

Japan's Fujitsu hit by third-quarter loss

Jan 31, 2012

Japanese high-tech giant Fujitsu plunged into a net loss for the three months to December, it said Tuesday, as it slashed its full-year sales and profit forecast.

Nintendo returns to profit, lowers sales forecasts

Jan 30, 2013

Japanese video game maker Nintendo Co. returned to the black for the first nine months of its business year and more than doubled its profit forecast for the full year, getting a perk from a weaker yen, despite ...

Nintendo's loss swells to $925 mn for first half

Oct 27, 2011

Nintendo said Thursday its net loss swelled to 70.3 billion yen ($925 million) for the six months to September as it forecast a full-year loss, citing the strong yen and a lack of hit game titles.

Japan's NEC sees $1.36 billion net loss

Apr 27, 2012

Japanese IT firm NEC said Friday it lost $1.36 billion in the year to March as asset write-downs and tax payments hit its bottom line, even as operating profit rose.

Recommended for you

Facebook sues law firms, claims fraud

3 hours ago

Facebook is suing several law firms that represented a man who claimed he owned half of the social network and was entitled to billions of dollars from the company and its CEO Mark Zuckerberg.

IBM 3Q disappoints as it sheds 'empty calories'

3 hours ago

IBM disappointed investors Monday, reporting weak revenue growth again and a big charge to shed its costly chipmaking division as the tech giant tries to steer its business toward cloud computing and social-mobile ...

MasterCard, Zwipe announce fingerprint-sensor card

Oct 18, 2014

On Friday, MasterCard and Oslo, Norway-based Zwipe announced the launch of a contactless payment card featuring an integrated fingerprint sensor. Say goodbye to PINs. This card, they said, is the world's ...

User comments : 0