Nintendo Posts Quarterly Profit But Cuts Full-Year Forecast

Kim White for Nintendo of America
Nintendo boss Satoru Iwata

The holiday period saw sales fall again despite hit titles 'Super Smash Bros' and 'Mario Kart.'

Nintendo logged profits of $383 million (45.2 billion) for the crucial Sept.-to-Dec. quarter, after registering a loss in the holiday period last year, even though sales fell around 10 percent to $2.3 billion (271 billion).

Big game titles released for the holidays, including Super Smash Bros and Mario Kart, which shifted more than eight million copies and helped sell 1.9 million Wii U consoles, couldn't stem the ongoing downward sales trend for Nintendo, or match Sony's PlayStation success. 

The Kyoto-based gamemaker also cut its operating income prediction for the full-year to March in half to $169 million (¥20 billion), though it lifted its net profit prediction by half to $254 million (¥30 billion). The profit will be generated mostly by the weaker yen, which helps Nintendo when it sends earnings back to Japan, while operating income is widely regarded as a better indicator of the overall health of a business.  

Nintendo benefited from the weakening of the yen against the dollar and the euro to the tune of $433 million (¥51 billion) in the nine months to December last year. 

Rival Sony, whose PlayStation 4 has been outselling the Wii U globally, reports its earnings on Feb. 3.

Nintendo stock closed almost flat at ¥12,300 ($104), in line with the Tokyo market on Wednesday before the earnings release.

 

Twitter: @GavinJBlair

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