Thursday, 29 January 2015

Super Smash Bros.' and exchange rates help keep Nintendo in profit

Nintendo's slow and arduous journey back to financial prosperity continued today with the release of its latest financial results. The company posted a second consecutive quarterly profit in its financial Q3, which counts sales from September through to December. Revenue was 271 billion yen (roughly $2.3 billion), generating a profit of 31.8 billion yen (around $270 million). A large part of the company's profits can be attributed to a weak yen, which dramatically increases the value of North American and European sales when converted to Japanese currency. Though the figures are generally pretty healthy, it's worth noting revenue for the holiday quarter dropped by around 13 percent year-over-year, something that will have a serious knock-on effect on the company's finances for the financial year.
Why the slide? Well, Wii U sales were down slightly yearly -- 1.91 million consoles versus 1.95 million the year earlier -- but this drop was easily offset by software gains. Nintendo moved 11.2 million Wii U games in Q3, its best results since the console launched in 2012. Key to this success was Super Smash Bros. for Wii U, which sold around 3.4 million copies since late November. So for once, it's not the Wii U's fault. No, instead, the under-performer this quarter was the 3DS family of handheld consoles.

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