Nintendo making nearly $250 million from digital sales alone

Source: Wii U News on Miiverse and Gamasutra.

"I think Nintendo is finally all-in on digital sales. It took some work, and I still don't understand why they let the business languish on the Wii, but they look like they've finally turned the corner."

"Specifically, they're edging up toward US$250 million in annual revenue from digital sales, and they've pushed digital sales to nearly 11% of their total software revenue. Given the company's weaker position this generation, that has to be welcome news for the company and its investors."

"Here's the historical picture on total digital sales:"

"To smooth out seasonal variations, I've chosen to use TTM (trailing 12-month) figures. So each point on the graph represents the revenue from the 12-month period ending on that date. The ¥27.1 billion figure, for example, is for the 12 months ending 31 December 2014 (i.e. calendar 2014)."

"To give you an idea of some turning points in the history, I've also added two platform launches. I think you can see that launching the 3DS did eventually stanch the declining digital revenue after the Wii fell apart. Then around the launch of the Wii U there was a serious increase in the rate of digital sales."

"But it's that jump this past quarter that's really remarkable. Here's the difference: the digital revenue between 1 April and 30 September 2014 was ¥10.7 billion. That's for a full six months, and in the following 3 months (between 1 October and 31 December), the company generated almost the sme amount: ¥10.4 billion."

"That's a big deal."

"As for how this measures up to Nintendo's larger software market, that ¥27.1 billion in digital revenue represents 10.8% of the company's total software revenue. Given where the company started with the Wii, they've come a tremendous distance. Here's that picture:"

"What's remarkable about this graph is that it does appear to show that Nintendo grew its digital revenue as a share of its total software from the launch of the 3DS to the launch of the Wii U. Then the company embarked on a new growth period around the launch of the Wii U, which then stagnated for about a year."

"Is this sustainable? Nintendo really needs a good answer to that question, and I'm not sure what they're going to do. Their hardware platforms are flagging a bit, and they will need an engaged set of users to keep up the software sales. It's possible that the New Nintendo 3DS models can help drive some interest, but we won't know those results for several more months."

Not really sure I understand everything that this guy is talking about...But basically, what he's saying is that Nintendo's digital E-Shop sales are making them a crap ton of money, right?

If so, that's great news. Just thought I'd share....Sharing is good. =)

pocket change.

M$ used half a billion just for the marketing of Kinect.

@Gue1: Is that how money much is costs to market games and stuff? No wonder Nintendo barely markets the Wii U, they would lose more money than they would make.

Nintendo also loses more than that with just the Wii U.

Not really, only if you have something you really need to get a ROI on. Kinect actually became very big and Kinect also was an expesnive piece of equipment in development and shipping/assembly.

A more accurate comparison is that XBL digital sales are around double the Nintendo figure or more.

Adorable. How much of that do they net?

They are? Hmm, I never knew that...I guess it's time for Nintendo to start that Wii U/3DS cross buy.

Its good news. It could be even better if they did more to encourage digital sales. A small internal HDD would have been huge for them at launch. Even if it was as small as 120 GB. I don't think they thought it could be something they could grow, but I have spent plenty of cash on their digital games and have been quite content. I am downloading the Prime Trilogy right now. Hopefully their next promotion will combine the Deluxe Digital Promotion with Club Nintendo and make it into a robust digital marketplace.

thats nothing to brag about lmao proably what ms/sony make a month from xbl/psn fees

Microsoft also owns Windows.

Nintendo only has gaming as it's revenue stream.

Nintendo has made/spent more than that (250 )before what are you talking about?

Cool, I imagine they get most of that money as people are probably most drawn to their first party content.

buck is a buck :)

And ?

Isn't Kinect in the bin ?

Indeed. Nintendo could do with $250 million what MS would need $1 billion for.

Hai, I'm Bob BoxBody.

That is great to hear and hope that it increases in the future.

The digital future is inevitable, even for devices as ill-equipped for it as the Wii U.

What would be interesting to know is which titles drove that spike in digital adoption and what portion the digital sales account for out of total sales.

They would have gotten more money from me, if they supported Visa Electron or at least added paypal support. Steam and PSN work fine with my VE, but Nintendo doesn't want to support it.

One has to wonder how much of that money is due to the fact that people have to pay multiple times for the same game on multiple platforms.

Looks like anti-consumer policies really do pay. People still think Nintendo's going to change this policy anytime soon? Yeah, I don't think so…

"Anti-consumer policies really do pay."

Looking at EA, Activision, and Ubisoft, does that REALLY surprise you?

MT, DLCs, nah. When it comes to having to buy the same games twice.....yes, that's surprising.

The suits at Nintendo I bet are finally noticing digital is bigger than they thought. I foresee a decent size HHD in their next console.

Out of touch, I'd say. No one cares about the Kinect.

doesn't support VISA Electron, ****, may have to rethink my purchase this friday then, i was getting a Wii-U and the main draw was the ton of old games they have on there market but if a cannot use my Eelectron card i am screwed.

Is there anyway i can buy Credit in store like Voucher cards or something?

Nintendo's Online Network policies are tragic.

In places like Gamestop, there are eShop cards. Been a thing since the Wii when they were Wii Points.

Cheers dude, thank god for that, i am REALLY looking foreward to getting my Wii-U.

@delta3074: It's such a hassle though.

Think of how higher that number would be if it weren't for their system tied account system.

Now imagine how much more these morons would have made if they actually put HDD's in each console.

That's because MS sits atop a mountain of liquid capital. Remind yourself that MS's Xbox division is a financial drain on the company.

@kenakuma: ...or lower.

I'm betting it would be higher. Anti-consumer practices generally harm the company implementing them more than they help.

and a 32gb Hardrive..