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Wii U Sells 300,000 In Second Quarter, Console Having Negative Impact On Finances

Nintendo’s second quarter financial earnings report details sales of the company’s hardware and software, along with some additional details about the Wii U. The financial results are a significant decrease from a strong first quarter.

Nintendo has announced that 460,000 Wii U units were shipped worldwide in the first six months of the fiscal year, and approximately 300,000 of those were in this second quarter. There have been 3.91 million units shipped during the console’s life. Nintendo is holding fast to its projection of 9 million units sold by March 31, 2014. 

By contrast, the 3DS sold 3.89 million in the first six months of Nintendo’s fiscal year, of which 2.49 million were sold in this quarter. The original Wii sold 470,000 units in the first half of the year, with 260,000 of those coming in the three months between July and September 2013.

The Wii U is still deemed as having a “negative impact on Nintendo’s profits.” This is attributed to price markdown on the Deluxe sku from $349 to $299 in the United States (and a similar price drop in Europe). Nintendo also identifies investment in “research and development” and advertising intended to improve sales as part of the reason for flagging financial performance. 

Nintendo reports operating losses for these six months in the amount of ¥23.26 billion ($236 million) and net profit of ¥600 million ($6.1 million). At the end of the first quarter, Nintendo reported operating loss of ¥4.9 billion ($49 million) and net profit of ¥8.6 billion ($88.1 million).

[Source: Nintendo]

 

Our Take
Nintendo is counting on an enormous holiday season if it hopes to sell 6 million units in the second six months of the year. The Wii U still hasn’t picked up a head of steam as it reaches the end of its first full year on the market. Unfortunately, titles like Donkey Kong Tropical Freeze and Smash Brothers are a still a bit in the distance, the former of which was delayed out of this calendar year. Holiday sales would have benefitted from it.

The only major first-party title that Nintendo has yet to release is Super Mario 3D World. By all accounts, it’s looking great, but it might not be enough to motivate buyers with the Wii still on the shelf. The sooner Nintendo puts its legacy hardware out to pasture and puts the spotlight solely on the Wii U, the better off it will be.

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