Support NeoGAF

[1st Course]

http://www.nintendo.co.jp/ir/pdf/2014/141029e.pdf

Q2

96.7 billion yen revenue
9.5 billion yen operating income
24.2 billion yen net income

H1 (Q1 + Q2)

171.4 billion yen revenue
-0.22 billion yen operation income
14.3 billion yen net income

3DS Unit Sales (Unit: Million)

Hardware       Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr      FY      LTD

FY 2010/11       -        -        -      3.61      3.61     3.61

FY 2011/12     0.71     2.36      8.36    2.10      13.53    17.13       

FY 2012/13     1.86     3.20      7.65    1.24      13.95    31.09

FY 2013/14     1.40     2.49      7.76    0.59      12.24    43.33

FY 2014/15     0.82     1.27        -       -       2.09     45.42  



Software       Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr      FY      LTD

FY 2010/11      -        -         -      9.43      9.43     9.43

FY 2011/12     4.53     3.60     19.91    7.96      36.00    45.42    

FY 2012/13     7.39     11.64    20.53    10.05     49.61    95.03

FY 2013/14     11.01    16.37    29.87    10.64     67.89    162.92

FY 2014/15     8.57     14.73        -       -       23.30   186.22

Wii U Unit Sales (Unit: Million)

Hardware       Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr      FY      LTD

FY 2012/13       -        -      3.06     0.39      3.45     3.45

FY 2013/14     0.16     0.30     1.95      0.31     2.72     6.17

FY 2014/15     0.51     0.61        -       -       1.12     7.29  



Software       Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr      FY      LTD

FY 2012/13       -        -      11.69    1.73      13.42    13.42   

FY 2013/14     1.03     5.27      9.66    2.9       18.86    32.28

FY 2014/15     4.39     5.01        -       -         9.40   41.67

Wii Unit Sales (Unit: Million)

Hardware       Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr      FY      LTD

FY 2006/07       -        -      3.19     2.65      5.84     5.84

FY 2007/08     3.43     3.90     6.96     4.32      18.61    24.45   

FY 2008/09     5.17     4.93     10.42    5.43      25.95    50.39

FY 2009/10     2.23     3.53     11.30    3.48      20.53    70.93

FY 2010/11     3.04     1.93     8.75     1.36      15.08    86.01

FY 2011/12     1.56     1.79     5.61     0.88      9.84     95.85

FY 2012/13     0.71     0.61     2.21     0.45      3.98     99.84

FY 2013/14     0.21     0.26     0.60     0.15      1.22     101.06

FY 2014/15      0.09    0.08        -       -       0.17     101.23     
             
			 
Software       Ap-Jn    Jl-Sp    Oc-Dc    Ja-Mr      FY       LTD

FY 2006/07       -        -      17.51    11.33     28.84    28.84

FY 2007/08     15.98    20.99    47.38    35.25     119.60   148.44  

FY 2008/09     40.41    41.00    82.37    40.80     204.58   353.02

FY 2009/10     31.07    45.14    80.43    35.17     191.81   544.83 

FY 2010/11     28.17    37.04    85.33    20.72     171.26   716.09

FY 2011/12     13.44    23.01    52.61    13.31     102.37   818.46 

FY 2012/13     8.47     15.27    21.34    5.53      50.61    869.06

FY 2013/14     3.67     11.23    8.37     2.89      26.16    895.22

FY 2014/15     1.60      4.58        -       -       6.18    901.41

FY 2014/15 Nintendo Forecast (Unit: Million)

                3DS       NDS       Wii        Wii U
	
Hardware        12.00      -        0.50       3.60   

Software        67.00      -        9.00       20.00

Credit goes to Parmenides for the format.
-------------

Selected quotes

Lowest Operating Loss since 2011, with quite the jump in 3 months going from 9.4bn to 0.2bn.
Decent net profit.

Much better than last years results.

- Mainly costs reductions
- They have reversed the losses in Q1 from Foreign Exchange due to Q2's stronger than expected US Currency
- About 210 million Restructuring charges incurred in H1
- Analysts expected a net income profit of 63$ million US (Nintendo did 230 million$)
- Wii U's 3.6 million forecast remains intact and will most likely exceed internal projections by year-end
- 3DS remains to be seen

In the end, I'm very happy by these results

I'm personally expecting Operational Income to stand at 30 Billion in Q3; don't know if they will achieve overall of 40 Billion in FY15 honestly but a profit nonetheless

Yes, all unit numbers in OP [HW/SW] are shipped

Why are Nintendo's digital receipts so flat? Was it exchange rate related?

According to their filings:

1Q14: ¥5.7 billion
2Q14: ¥5.7 billion
1H14: ¥11.4 billion

1Q15: ¥5.0 billion (-12% YOY)
2Q15: ¥5.7 billion (0% YOY)
1H15: ¥10.7 billion (-6% YOY)

I wonder if sales are actually up among active users (i.e. last 3-6 months) but the older 3DS and Wii base (who were buying digital) is eroding more quickly.

It seems Nintendo has hit rock bottom, at least as far as Q2 (jul, aug, sep) operating income is concerned:

fy2011: +30.9 billion
fy2012: -19.6 billion
fy2013: -18.8 billion
fy2014: -18.3 billion
fy2015: +9.3 billion

with numbers: http://abload.de/img/nintendovideogamesyst0yjmw.png

with numbers: http://abload.de/img/portablevideogamesysth4ko0.png

 

[TheXfactor]

They made money? wow

 

[SatoAilDarko]

Glad to see them get a net profit.

 

[Blooddimond]

If I'm reading it right, looks like Wii U sales about doubled in April-September period from last year. Still very low, but a definite improvement.
edit: nevermind, only shipments. Still shows at least some more demand for it unless nintendo is really overshipping.

 

[Zalman]

Rise from the ashes.

 

[Mory Dunz]

Dang, 3DS struggling.

Wii U is up though.

EDIT:
Ok, so it's shipments right?

 

[SalvaPot]

And now we have to look forward to the Holidays.

Amiibos, do your thing.

 

[SwiftDeath]

So yeah the XB1 has probably outshipped the Wii U WW.

On-topic, overall results seem positive for the company I think although the hardware shipments aren't particularly impressive but the Wii U even doubling last years shipments is still low

 

[malfcn]

Profit is good.
Congrats

 

[Zeyphersan]

Wii Us above 7 mil worldwide

 

[kuroneko0509]

If I'm reading it right, looks like Wii U sales about doubled in April-September period from last year. Still very low, but a definite improvement.

Yep. About 2.4x the previous year. Nice to see they manage to reduce the operating loss to 0.2 billion yen.

 

[StreetsAhead]

If I'm reading it right, looks like Wii U sales about doubled in April-September period from last year. Still very low, but a definite improvement.

Yeah, it looks to be that way. Don't think any significant Wii U software shipped this quarter WW other than Hyrule Warriors, either.

 

[shinra-bansho]

Wii U forecast looks doable.

3DS forecast of 12M hardware... :/

 

[kuroneko0509]

Wii U forecast looks doable.

3DS forecast of 12M hardware... :/

Believe in new 3DS & new 3DS LL

 

[L~A]

So... pretty meh semester. Sales are down, operational losses of 0.2bn Yen... but they still managed to make some money.

Hopefully the holidays will boost sales.

 

[JoeM86]

Could the clouds be dispersing?

Lowest Operating Loss since 2011, with quite the jump in 3 months going from 9.4bn to 0.2bn.
Decent net profit.

Let's see how the next quarter does. Amiibo, Smash, N3DS, Pokémon...it could be spectacular

So... pretty meh semester. Sales are down, operational losses of 0.2bn Yen... but they still managed to make some money.

Hopefully the holidays will boost sales.

Maybe meh in general, but it shows that things are gradually turning around

 

[Mory Dunz]

Why is Q2 software down for the Wii U though compared to last FY?

Because...Pikmin?
But this year had Hyrule right?

 

[Shaanyboi]

Wii U forecast looks doable.

3DS forecast of 12M hardware... :/

we'll see how that New 3DS does... Japan's gonna have to seriously pick up the slack with that thing

 

[Rubixcuba]

Wii U well improved over the last year, but the 3DS is of good concern. Really needs some software announced.

 

[Sheroking]

Going to be a nice trend from Q2 through Q3 for Nintendo with Smash on both systems and Pokemon on 3DS. 3DS looks barren in 2015, though. Wii U looks strong (relatively speaking) through 2015.

There must be new handheld hardware in the offing for Nintendo.

 

[LOCK]

Nintendo will have a great Q3 this year.

With N3DS, the decline in the 3DS shipments should hopefully stop. Amiibo and Smash for the Wii U will give the Wii U it's best holiday I think. So over 3 million shipped in Q3. Yeah Nintendo will easily meet it's Wii U goal.

 

[vinnygambini]

Much better than last years results.

- Mainly costs reductions
- They have reversed the losses in Q1 from Foreign Exchange due to Q2's stronger than expected US Currency
- About 210 million Restructuring charges incurred in H1
- Analysts expected a net income profit of 63$ million US (Nintendo did 230 million$)
- Wii U's 3.6 million forecast remains intact and will most likely exceed internal projections by year-end
- 3DS remains to be seen

In the end, I'm very happy by these results

I'm personally expecting Operational Income to stand at 30 Billion in Q3; don't know if they will achieve overall of 40 Billion in FY15 honestly but a profit nonetheless

 

[foxuzamaki]

Good to see WiiU on the up and up.

 

[JoeM86]

Going to be a nice trend from Q2 through Q3 for Nintendo with Smash on both systems and Pokemon on 3DS. 3DS looks barren in 2015, though. Wii U looks strong (relatively speaking) through 2015.

There must be new handheld hardware in the offing for Nintendo.

You know Nintendo, they often like to keep their cards close to their chest, especially with the 3DS.

No new hardware will come next year other than QoL. They haven't released the N3DS in the west yet. It will have exclusive games. Do you really think they'd drop that and a new handheld in the same year?

 

[Mpl90]

Wii U forecast looks doable.

3DS forecast of 12M hardware... :/

Yeah, Wii U is doable.
But 3DS...eh. It all depends on New 3DS now. Both in Japan and in the West (I can't imagine them not launching it after March 2015). At least, this shipment should mean the majority of those unsold units they were sottinteso on for months have been finally sold to customers, so they can start shipping bigger amounts again. That has been a major problem for 3DS' shipments, so far.

 

[Unknown One]

Isn't that shipped numbers for the Wii-U?

 

[shinra-bansho]

we'll see how that New 3DS does... Japan's gonna have to seriously pick up the slack with that thing

Shipments are down 46% Y/Y, Japan isn't picking that slack up.

Even if it somehow managed to match last year's shipments, which seems highly unlikely, it wouldn't hit 12M. It seems like it will be a stretch to get over 10M.

 

[Log4Girlz]

What a sad situation. At least they made profit. Hang in there Nintendo. Hopefully you knock it out of the park next generation.

 

[Sheroking]

You know Nintendo, they often like to keep their cards close to their chest, especially with the 3DS.

No new hardware will come next year other than QoL.

QOL was FY2017, I thought. Many years away.

As for "no new hardware", have they said that? We didn't hear anything on 3DS until late December 2009, where there were rumors from developers, and then they randomly announced it in a press release at like 3AM in March 2010.

They could conceivably have new hardware this year. It would explain why their dev teams are silent on 3DS.

 

[SwiftDeath]

Isn't that shipped numbers for the Wii-U?

Yes, all unit numbers in OP [HW/SW] are shipped

 

[AntiFacebook]

0.61M in the quarter when MK8 was released? The wiiU's situation is worse than I thought...

 

[JoeM86]

QOL was FY2017, I thought. Many years away.

As for "no new hardware", have they said that? We didn't hear anything on 3DS until late December 2009, where there were rumors from developers, and then they randomly announced it in a press release at like 3AM in March 2010.

They could conceivably have new hardware this year. It would explain why their dev teams are silent on 3DS.

The N3DS is just dropping and has exclusive titles coming for it. There will be no new hardware in 2015.

0.61M in the quarter when MK8 was released? The wiiU's situation is worse than I thought...

Just to be pedantic. Mario Kart 8 was in Q1 (April, May, June). This was Q2 (July, August, September).

 

[jimi_dini]

Spoiler

yeah I know, people should be replaced yada yada

 

[Sheroking]

The N3DS is just dropping and has exclusive titles coming for it. There will be no new hardware in 2015.

Two gens in a row, Nintendo released a revision of their current system only to launch next-gen within the next 5 quarters (GBA Micro, DSi XL).

 

[AntiFacebook]

Just to be pedantic. Mario Kart 8 was in Q1 (April, May, June). This was Q2 (July, August, September).

Huh? Do they count them differently in Japan?

 

[botty]

And this is before Smash, Pokemon, and Monster Hunter

 

[KingSnake]

Not spectacular in terms of hardware sales, but great to see that in Q2 they almost compensate the full operating loss from Q1 and turned to profit for H1. Good to see that they shipped in Q2 almost the same as in Q1 (which was MK8 quarter), might mean that the console is selling more steadily now.

 

[liger05]

E3 next year please announce a new handheld.

 

[JoeM86]

Huh? Do they count them differently in Japan?

The financial year doesn't, and this is how most countries do it. Financial year starts in April

Two gens in a row, Nintendo released a revision of their current system only to launch next-gen within the next 5 quarters (GBA Micro, DSi).

At the very most, we'll get a hint of one next year, but one will not be coming until 2016 at the absolute earliest.

 

[Shining Sunshine]

200 million is a start. Maybe the cheaper hardware is starting to pay off.

 

[Anth0ny]

Just to be pedantic. Mario Kart 8 was in Q1 (April, May, June). This was Q2 (July, August, September).

I noticed that. Surprised Q2 > Q1 considering MK8 dropped in Q1.

Obviously Hyrule Warriors has been a huge system seller.

 

[allan-bh]

Wii U shipment is bad of course, but doubled last year.

 

[Zalman]

E3 next year please announce a new handheld.

With the New 3DS coming a few months before that? Hell naw.

 

[Blooddimond]

I noticed that. Surprised Q2 > Q1 considering MK8 dropped in Q1.

Obviously Hyrule Warriors has been a huge system seller.

MK8 probably had a large amount of word of mouth in July onwards, since it released at the end of June. Its launch period could be considered as part of both almost.
Edit: nevermind, It was may. I've lost track of time at this point and shouldn't be posting about dates.

 

[Chaos17]

Interesting read that the PDF has.

" Consolidated Operating Results

During the six months ended September 30, 2014, for “Nintendo 3DS,” “Super Smash Bros. for Nintendo 3DS,” released in Japan in September, showed extremely strong initial sales, and marked 3.22 million units in sales globally, partly because shipments for the October release in the overseas markets began in September. “Tomodachi Life,” released in June in the overseas markets, continued to show steady sales, and marked 1.27 million units in sales worldwide during this fiscal year (3.12 million units on a cumulative basis). As a result, the global sales of the “Nintendo 3DS” hardware and software were 2.09 million and 23.3 million units respectively.

With respect to “Wii U,” Nintendo released “Mario Kart 8” globally in May, which has continued to show steady sales, as well as “Hyrule Warriors,” released in September in the overseas markets, which has gained popularity. The worldwide sales of the “Wii U” hardware and software were 1.12 million units and 9.4 million units respectively.

Net sales as a result were 171.3 billion yen (of which overseas sales were 125.5 billion yen or 73.3% of the total sales) and gross profit was 81.0 billion yen. Total selling, general and administrative expenses exceeded gross profit, resulting in an operating loss of 0.2 billion yen. As a result of exchange gains totaling 15.5 billion yen due to depreciation of the yen at the end of this period compared with the one at the end of the last fiscal year, ordinary income was 22.1 billion yen and net income was 14.3 billion yen.

Consolidated Financial Forecast

There are no revisions to the consolidated financial forecast for this fiscal year, announced on May 7, 2014.

Since the May release of “Mario Kart 8,” the “Wii U” platform has been experiencing improved sales momentum. In addition, we will release “Super Smash Bros. for Wii U” in November in the United States, and in December in Japan and Europe. It is the first year-end sales season for Wii U in which two big Nintendo titles will be available for family members and friends to have fun together with in their living rooms. Moreover, we will launch character figures called “amiibo,” which are categorized as a brand new product genre, in conjunction with the release of “Super Smash Bros. for Wii U.” “amiibo” is one of the examples of actively utilizing our own character IP. In addition to being attractive figures for consumers to collect, when “amiibo” figures are tapped on the Wii U GamePad, they offer fun new gaming experiences by affecting relevant software titles in various ways. At the same time, we will aim for more product exposure and an increase in brand awareness by having Nintendo character figures displayed on store shelves. By doing so, we will attempt to expand sales and further stimulate the Wii U platform.

For “Nintendo 3DS,” due to a lack of strong titles especially in Japan, the sales momentum had slowed down; however, since this summer, the “Nintendo 3DS” platform has been gaining sales momentum as a result of releasing key titles one after another. We expect to expand sales in the year-end sales season with “Pokémon Omega Ruby” and “Pokémon Alpha Sapphire” to be released globally in November, and a number of key titles from third-party publishers. “New Nintendo 3DS/3DS XL,” launched as the newest members of the “Nintendo 3DS” family in Japan in October, are off to a good start. On top of the features of the existing “Nintendo 3DS” models, “New Nintendo 3DS/3DS XL” have the new “Super-Stable 3D” function, which provides players with a more comfortable 3D gaming experience, even in games involving intense movement, and a new stick and buttons, which enhance the play controls of the existing “Nintendo 3DS” hardware. Furthermore, by using the new “NFC” feature, “New Nintendo 3DS/3DS XL” are going to be compatible with “amiibo” in the future. “New Nintendo 3DS/3DS XL” have been well received by consumers who purchased them, and we aim to further accelerate the sales pace of the “Nintendo 3DS” hardware."

 

[LOCK]

This clearly tells me that N3DS will launch Q4 in the West.

So no new hardware in CY 2015 in the west, unless QoL is actually something.

 

[ninjablade]

But chartz had wiiu at 7.4 millions units sold through WW. Lol

 

[JoeM86]

MK8 probably had a large amount of word of mouth in July onwards, since it released at the end of June. Its launch period could be considered as part of both almost.

It released the end of May did it not?

 

[Lernaean]

Good to see they are making some profit.
Nintendo has the best selection of software this gen so far and they deserve better.

 

[Sheroking]

At the very most, we'll get a hint of one next year, but one will not be coming until 2016 at the absolute earliest.

Well, yeah, that was the 3DS timeline. Announced in March 2010, debuted at E3 2010, released in early 2011. That entire time the DS was dead except for Pokemon Black/White.

I could see a similar timeline unfolding.