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Wii U And 3DS Sales Up, Profits Down In Nintendo's Second Quarter

by Mike Futter on Oct 28, 2015 at 03:20 AM

Nintendo has reported its financial results for its second quarter of the fiscal year. The company is in the black, though income is sharply down for the quarter and trailing behind last year’s six-month performance.

Sales were up for the quarter 17 percent, reaching ¥113.96 billion ($945.86 million). Profits dropped by 86 percent for the three-month period to ¥3.17 billion ($26.32 million) and trail performance at the six-month mark by 19 percent.

Operating income dropped in the second quarter, but is tracking significantly ahead of last year for the six-month period. It was this quarter last year that Nintendo reversed course and pulled its operating income out of the red and into the black.

Wii U sales are up for the first half of the year, with 1.19 million consoles sold worldwide. Nintendo has not revised its full-year sales goal of 3.4 million, and the crucial holiday season is still yet to come. Lifetime sales are now 10.73 million.

3DS sales were level for the quarter, but due to a stronger first three months of the year are tracking ahead of last year’s sales.  2.28 million units have been sold this year, against an ambitious goal of 7.6 million handhelds inclusive of all 3DS, New 3DS, and 2DS models. Lifetime sales have reached 54.34 million.

On the software side, Nintendo notes that strong performance of Animal Crossing Happy Home Designer, which has now shipped 2.02 million copies. Super Mario Maker has reached 1.88 million shipped copies, with Splatoon continuing to perform well with 2.42 million copies shipped.

Notably, Mario Kart 8 has now reached 5.87 million shipped copies. Based on current Wii U shipments, that’s an attach rate of approximately 55 percent.

[Source: Nintendo (1), (2)]


Our Take
Despite a dip in profits, Nintendo is setting itself up well. This is in spite of continued weak Wii U sales. With its upcoming mobile plans and strong Amiibo uptake, the company is building itself a foundation for its next foray into the living room.