Nintendo Reports Big Losses as Wii U Sales Stall

Pokemon Sun/Moon highlighted as key upcoming title that could "re-energize" 3DS business.


Nintendo has detailed its financial results for the three-month period spanning April 1 to June 30, 2016, reporting a big decline in sales compared to the same period in 2015.

Net sales were cited as $587 million, which represents a 31 percent decline in comparison to 2015, when it reported sales of $855 million.

Its operating income also showed a decline for the second year running in this period. It reported a $48 million loss in 2016; during the same period in 2015, the loss was $10 million.

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Nintendo noted a decline in sales of both the 3DS and Wii U as one of the causes. Sales of its handheld were 940,000 units worldwide for the period, which is a seven percent decline over the previous year.

The Wii U, meanwhile, suffered a more considerable drop, with 220,000 units sold worldwide. This is a 53 percent decrease compared to 2015.

From a software perspective, Kirby: Planet Robobot was said to have showed "steady sales," and Fire Emblem Fates' European launch was deemed as getting "off to a good start."

Worldwide software sales for the Wii U remained flat, with 4.6 million units reported for the 2016 period, compared to 4.5 million in 2015. 3DS sales for the 2016 period, however, showed a small improvement, rising from 7.9 million units worldwide in 2015 to 8.4 million units in 2016.

Nintendo also brought up foreign exchange rates, which it said were "impacted by significant yen appreciation" and resulted in a $332 million loss.

Keep in mind Pokemon Go's launch came in July and thus would not be reflected in this report. However, Nintendo has said its impact likely will not be as big as some expect.

Looking ahead, Pokemon Sun/Moon, which launch in November, were highlighted as key titles. It also noted that it will release Mario Party Star Rush in the fall. Together, it believes these games can "re-energize" the 3DS business.

Of course, it also reiterated that its next gaming platform, NX, will be available in March 2017.

Additionally, Pokemon Go Plus, the watch-like companion for the mobile game, will now be available in September in the US, instead of its previously expected July release.

The Kyoto-headquartered company did not adjust its financial outlook for the fiscal year.

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