Nintendo’s profits are up, as hardware sales are down

 

Nintendo had a few encouraging numbers to share with its investors this morning, the company has raised the projected annual net profits from the originally projected Â¥6 billion to Â¥14 billion. Although this is an increase, hardware sales are still not as high as Nintendo originally planned. 

 

What is going according to plan is the currency exchange rate for the Yen. Companies like Nintendo and Sony have been loosing millions of dollars for the past few years due to the strong Yen over foreign currencies. As the Yen weakens, profits for these Japanese companies could finally start to climb, even if sales are down.

 

That is the case at least for Nintendo, who posted a nine-month operating loss of ¥5.8 billion for the year. Hardware sales were mostly to blame for any financial difficulties the company is facing with the Wii U falling short of projected sales goals. Nintendo originally forecasted 5.5 million Wii U units would sell, that number has been adjusted to 4 million by the end of the fiscal year.

 

Software sales saw some impressive figures, as Nintendo sold 11.69 million Wii U games since the console’s launch on November 18, 2013. The two standouts were ‘Nintendo Land’ at 2.33 million units and ‘New Super Mario Bros. U’ at 2.01 units. In 9 months Nintendo shipped out 39.56 million Nintendo 3DS consoles. Popular software titles were ‘Pokémon Black/White 2′ with 7.63 million, ‘New Super Mario Bros. 2′ at 5.96 million and ‘Animal Crossing: New Leaf’ at 2.73 million as of December 31, 2012. Overall Nintendo has a lot to be cheerful about. Even without a perfect record for 2012, increasing the projected profits for the year is always a good thing for investors to hear.

 

source: nintendo