Wii U lifetime sale 3.06 million, FY Sales forecast cut by 17%: Nintendo
- By Sehran Shaikh
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Nintendo turned a profit in the nine month period ended Dec. 31, 2012 with net income reaching ¥14.5 billion ($159 million), or ¥113.75 per share, compared to a ¥48,351 million loss of the same period last year, the company announced on Wednesday.
Net sales were ¥543,033 million, down 2.4 percent year-on-year, hardware sales accounted for ¥344,748 million while software sales reached ¥197,101 million.
The Japanese firm has cut its full-year global sales prediction by 17.3 percent to ¥670,000 million and foresees an operating loss of ¥20,000 million, though profit forecast was raised by 133.3 percent to ¥14,000 million.
The company however now expects to sell 4 million Wii U consoles by the end of march 2013. Down 1.5 million from the previous October forecast. The Wii U sold 3.06 million units worldwide since itsa launch in November and December.
"Affected by the yen appreciation against the Euro during this nine-month period and the above results, among other factors, net sales were 543 billion yen (of which overseas sales were 360.7 billion yen or 66.4% of the total sales)," read an accompanying statement.
"Owing to the fact that the “Wii U” hardware sales have a negative impact on Nintendo’s profits, the operating loss was 5.8 billion yen. As a result of exchange gains totaling 22.2 billion yen due to the depreciation of the yen at the end of calendar year 2012, however, ordinary income was 22.7 billion yen and net income was 14.5 billion yen."
"The earnings forecast has been modified to reflect a lower-than-expected sales outlook based on the sales performance in the year-end sales season and afterward," the company wrote. "Also, exchange rate assumptions have been revised from 80 yen to 90 yen per U.S. dollar, and from 100 yen to 120 yen per euro, in consideration of the trend of the recent exchange rate situation."