Nintendo posts $229M loss, Wii U estimates down by 60 percent

Nintendo fell slightly short of the reduced financial projections it set in January, with the Wii U reaching 2.72 million shipments for the fiscal year ending March 31, 2014. However, the system remains way off Nintendo's initial projection of 9 million, so it's no surprise to see more conservative estimates for the fiscal year ending March 31, 2015 of 3.6 million units. That's 60 percent less than Nintendo originally projected for the previous year.

Total Wii U shipments are now up to 6.17 million, nearly a year and a half after the console launched. On the software side, Nintendo revealed figures of 32.28 million units to date, with New Super Mario Bros. U (4.16 million), Nintendo Land (3.09 million) and Super Mario 3D World (2.17 million) leading the way.

The Japanese company announced a net loss of 23.2 billion yen for the fiscal year, which converts to around $229 million. Nintendo noted net sales were lower than expected due to 3DS hardware and Wii U hardware and software not meeting targets, with the Wii U continuing to negatively affect profits due to its markdown in the West. Downgraded assets and increased spend on research and development also contributed to the net loss.

While the 3DS also fell below targets, it still shifted 12.24 million units across the last fiscal year, with the 2DS contributing 2.2 million to that figure. The handheld's total shipments to date are up to 43.3 million, with total software figures at just under 163 million. Pokemon X/Y (12.26 million) and Animal Crossing: New Leaf (7.66 million) were big sales drivers, but Nintendo noted strong figures for Luigi's Mansion: Dark Moon (3.98 million), The Legend of Zelda: A Link Between Worlds (2.51 million) and Mario & Luigi: Dream Team (2.08 million).

Looking ahead, the company noted the Wii U "still faces a challenging sales situation," and it's looking to stimulate its retail performance by making the GamePad have greater value as "the most important differentiator of Wii U." As for the 3DS, the forecast remains steady at 12 million units across the fiscal year. Overall, Nintendo projects revenues of 590 billion yen, converting to $5.8 billion, and a net profit of 20 billion yen, equal to $197 million.
[Image: Nintendo]

This article was originally published on Joystiq.