Nintendo has received its financial report card for its recently-concluded fiscal year, and once again the underperforming Wii U left its mark on earnings. While Nintendo had already braced for an annual loss following a complete revision in its fiscal year forecast back in January, the results were still far worse than the console giant originally expected.
For the twelve month period ended March 31st, 2014, NIntendo's revenue's fell 10 percent year-over-year to 571.7 billion yen ($5.6 billion USD) while net losses rang in at 23.2 billion yen ($228.6 million), a dramatic change of fortunes from the 7.1 billion yen ($69.9 million) in net profit it recorded the year before. Overall, the console giant would post an operating loss of 46.4 billion yen ($457 million) for the 2013 fiscal year, making it the third year in a row where core operations have not been profitable.
Poor Wii U hardware sales were no doubt to blame, reaching just 2.72 million units over the past twelve months. Recall that the year-to-date tally was at 2.41 million units back in January, meaning Wii U sales increased by only 310,000 units during the last four months of the fiscal year. The console's lifetime-to-date sales are now at 6.17 million units worldwide. Nintendo similarly conceded that Wii U software sales failed to ignite, with 18.9 million titles sold over twelve months.
While Nintendo's 3DS platform couldn't turn the tide for its financials, it remained a bright spot with solid sales of 12.24 million handhelds worldwide during the past fiscal year. The flagship 3DS XL model led the way, accounting for 7.87 million of the total, but the new 2DS managed to contribute an additional 2.2 million units. A combined total of 43.33 million Nintendo handhelds have sold worldwide since the launch of the original 3DS model.
Unfazed by its third consecutive annual loss, Nintendo believes it will set a course to profitablity this time around. The company in fact forecasts operating profit of 40 billion yen ($394 million) for the fiscal year ending March 2015. Nintendo projects 3DS hardware sales of 12 million units and software sales of 67 million units. Wii U hardware sales meanwhile are expected to reach 3.6 million units, backed by 20 million Wii U titles sold. The company is hoping for great things from Mario Kart 8 and Super Smash Bros. for the Wii U, both of which will be key titles intended to reinvigorate the platform.