by Anton Shilov
04/24/2013 | 11:40 PM
Nintendo has failed to sell the amount of Wii U game console it planned to back in January due to insufficient amount of games for the platform and general declines in sales of game consoles. The company also posted year-over-year decreases in revenues and profits, but still managed to become profitable in the fiscal 2012, which ended on March 31, 2013.
The net sales were down due to a large decrease in the unit sales of the Wii and Nintendo DS hardware and software despite the Wii U launch and the growth of the sales of Nintendo 3DS, the company said. During the FY2012, the company shipped 3.45 million Wii U game console units, which was lower than 5.5 million expected originally and 4 million projected back in January, 2013. Shipments of Wii totaled 39.8 million, sales of 3DS/3DS XL exceeded 139.5 million, whereas various versions of the DS were sold in 2.37 million quantity across the globe in FY2012.
“As for Wii U, it took off smoothly in the holiday season, but due to the lack of new software titles, we were unable to maintain the momentum this year. We initially hoped that Wii U would be showing more of a presence in the market by now, but the current situation shows that we need to spend more time on and put much effort into recreating the momentum,” said Satoru Iwata, the president of Nintendo, during the quarterly investor conference.
Nintendo’s net sales in FY2012 were ¥635.4 billion ($6.413 billion), a decline of 1.9% compared to the prior year. The company posted ¥7 billion ($70.65 million) net income, which is positive considering the fact that it made ¥43.2 billion ($436 million) loss a year ago.
For the fiscal year 2013, which ends on March 31, 2014, the company expects its net sales to hit ¥920 billion ($9.285 billion) and net income to be around ¥55 billion ($555.13 million). Forecasted unit sales for the fiscal year are as follows:
As it can be observed, Nintendo does not expect any breakthroughs in Wii U sales and does not anticipate that the platform will become as successful as the original Wii.