Nintendo Swings to Profit in Latest Quarter
TOKYO – Game maker Nintendo swung back into the black in the April to June quarter, reporting net income of $88 million (8.62 billion yen), its first profit in the quarter in four years, helped by a weaker yen and cost cutting. That compares with a loss of $175 million in the first quarter of 2012.
However, operating income -- often viewed as a better indicator of underlying business strength -- remained in the red, to the tune of $50.92 million (4.92 billion yen), though that is much less than the $105.5 million it bled last year.
Sales for the quarter fell 3.8 percent to $832.5 million (81.55 billion yen), compared to the same period in 2012.
The Wii U console has missed sales targets since its launch, and on Tuesday one of the U.K.’s biggest retail chains Asda, announced it would no longer stock the device in its stores, though it would remain available through the company’s website. In May, software giant Electronic Arts said it would no longer develop games for the console, citing poor sales.
In better news for the Kyoto-based company, the portable 3DS was the best-selling console in the U.S. in June, shifting 225,000 units, accompanied by a boost in software sales.