Nintendo Posts Quarterly Profit But Cuts Full-Year Forecast
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.