Tip:
Highlight text to annotate it
X
Nintendo's financial reports for the nine-month period ending December 2013 are out, and it
appears Mario isn't having an easy time collecting all those coins.
Revenue was down more than 8 percent from the same time in 2012. Profit margins were
still positive, but almost 30 percent slimmer. The rough numbers come as sales of Nintendo's
latest Wii U console continue to slump.
The company reported 2.4 million sales in that nine-month period, compared to 3.08 million
consoles sold in just the three months following its release in 2012.
And now Sony and Microsoft have released their respective PlayStation 4 and Xbox One consoles,
eliminating Nintendo's first-come advantage in the latest round of console wars.
One analyst suggests to Bloomberg Nintendo's timing — that is, first — might have actually
been a misstep.
"I think with the Wii U, the announcement of it, the release of it just before a generation
of new consoles, where Sony and Microsoft have priced themselves more reasonably, and
have learned from the mistakes they made competing against the Wii last time have put them in
a more difficult position."
Regardless, CNBC reports Nintendo doesn't look like it will recover momentum. If anything,
sales will slow even more.
"Nintendo slashed its Wii U sales forecast by almost 70 percent, to 2.8 million units
for the year."
And it's not just consumers feeling the sting of sluggishness. Ars Technica reports several
company executives, including President Satoru Iwata and several board members, will also
take pay cuts for the next five months.
There is a bright spot for Nintendo in the form of its portable gaming division. Its
latest 3DS handheld sold 11.65 million units in 2013.
And Nintendo appears content to stick to its existing mobile lineup. A day before its earnings
report, the company told Engadget rumors Nintendo was expanding into smartphone gaming weren't
true.
That means no Mario on your iPhone — although Nintendo would probably be happy to sell you
a 3DS to get your mobile fix.