Nintendo Posts Quarterly Profit But Cuts Full-Year Forecast

Kim White for Nintendo of America

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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