Nintendo made an annual operating loss for the third consecutive year in 2013, ending up ¥46.4 billion ($457 million) in the red as Wii U sales failed to pick up following the holiday season. The Kyoto company’s net loss was ¥23.2 billion ($228 million). Total Wii U sales now stand at 6.17 million consoles worldwide, meaning that Nintendo sold just 310,000 in the quarter ended March 31st — a 20 percent drop on its performance a year ago.
310,000 for the quarter. Total nightmare.
This is in stark contrast to Sony’s fortunes with the PlayStation 4, which had reached 7 million consoles worldwide as of April 6th; Sony has already overtaken the Wii U despite Nintendo’s year-long head start. The 3DS handheld family sold 590,000 units in Nintendo’s fourth quarter for a life-to-date total of 43.3 million, 2.2 million of which are of the lower-priced 2DS variant.
But, but, but the 2DS was going to be a massive hit! I didn’t know what the hell I was talking about!
Nintendo expects to return to the black in its 2014 fiscal year, forecasting an operating profit of ¥40 billion ($394 million) with 3.6m Wii U and 12m 3DS consoles sold. Shareholders may not take the claim at face value, though — CEO and president Satoru Iwata maintained until January that the company would make ¥100 billion profit in 2013, before backtracking dramatically and predicting a ¥35 billion loss on poor Wii U sales. As it turned out, Iwata underestimated the loss by more than ¥11 billion.
I’m not sure which is crazier: that Nintendo is still giving guidance that everything will soon be fixed — or that they expect everyone to believe their guidance anymore?
I’m more worried for the company than ever before. Please Nintendo, save yourself!