Nintendos Quarterly Report:

Most of you probably have heard about the quarterly report of Nintendo by now, but if you haven't let me break it down for you.

Earlier today we got the numbers for the third fiscal quarter of this year, which ended on December 31, 2014, as well as the numbers for the whole 9 months period of this fical year.
In this last quater Nintendo managed to gain a revenue of 271.5 billion yen, resulting in a net incom of 45.2 billion yen.
Now this are good figures and Nintendo has firmly returned into the black numbers once again. Also the forecast for the next quarter may show that the company expects their revenue to drop, but also their net income to grow by 30 billion yen.
With further advancement in technology producing Wii-Us gets cheaper and cheaper and even though they don't manage to sell all to many systems Nintendo can write a stable profit.

Because of this I don't think we can count on a price drop anytime soon. It will come, but I think it will be in winter of this year the earliest. Right now a stable profit is more important for Nintendo than a huge userbase. I guess that Nintendos plan is to build a good reputation for the Wii-U through word of mouth, so that the next system starts with a lot of consumer confidence behind it. Because noe matter what happens Nintendo will always support their systems.

We also got a look at the sales figures of Nintendo hardware and some of their key software.

• 1.91 million Wii-U consoles where shipped this quarter and the total of sold consoles is now 9.2 million units.
• The 3DS managed to ship 4.99 million units and the total numbers are now at 50.41 million.
• Pokemon Omega Ruby and Alpha Saphire have been shipped 9.35 million times
• Super Smash Bros. 3DS sits at 6.19 million units
• And Super Smash Bros. Wii-U is quickly catching up with 3.39 million units
• This years leader on the Wii-U is without doubt Mario Kart 8, which has a record breaking attach rate with 4.77 million units shipped
• Lastly the Amiibo figurines managed to sell 5.7 million times so far

These are some really good figures. Especially Smash Bros. Wii-U and the Amiibos are insane. They haven't been available for more than one month in many countries and are already surpassing huge third party ips like Far Cry and Assassins Creed on single systems and Dragon Age in general. Also Mario Karts attach rate of nearly 52% is insane. 

The only thing that worries me a little are the 3DS numbers. Of course nobody expected them to be great with the New 3DS on the horizon, but Nintendo lowered their yearly forecast from 12 million sold units down to 9 million. Maybe the New 3DS will reinvigorate the sales, but it seems even Nintendo is sceptical. The main problem is that there are nearly zero games for the system in production outside of Japan. Most western companies have moved onto the mobile market, so Nintendo is once again mostly alone with supporting its console. 

Well at least we'll get Monster Hunter 4 and Majoras Mask soon. Maybe these two titles will manage to push the 3DS one more time. 

But I firmly think that a new handheld will be introduced in 2016 or in 2017 if the fusion rumors are true. 

So to put all these numbers into perspective. Nintendo is doing well under the circumstances the company is currently in. Wii-U provides stable numbers. Not amazing, but also not disastrous anymore. Software sales are very strong. The only ''problem child'' is the 3DS. Of course I put problem into exclamation marks here. The handheld still sells really well, but it's unmistakably in decline. Maybe the 3DS can reinvigorate the brand, but it's pretty clear that the 3DS has seen its peak and is now riding out slowly. 

and as always

thanks for reading

Source: Nintendo