Nintendo Releases Financials For Fiscal Year 2012

Today, Nintendo released their report detailing the company’s finances over the past twelve months months. Nintendo Gal has gone through the report and pulled out the most interesting information. All dollar figures are estimated calculations.

-Total sales were 647.7 billion yen ($8.03 billion), down 35.2% from last year. This led to an overall loss of 43.2 billion yen ($535 million), compared to last year’s net income of 77.6 billion yen ($962 million).

-Nintendo expects 820 billion yen ($10.2 billion) in sales over the next year, with a net income of 20 billion yen ($248 million). The company is currently worth 1.068 trillion yen ($13.2 billion).

-Nintendo had an operating loss of only 37.3 billion yen ($462 million); the company lost another 27.7 billion yen ($343 million) in losses due to changing exchange rates.

-The strongest-selling games for Nintendo last year were Super Mario 3D Land, Mario Kart 7, and The Legend of Zelda: Skyward Sword. They plan to continue pushing the first two as “evergreen” titles.

-Nintendo expects that by the end of September, they will be making profit on every Nintendo 3DS sold. The major titles they have planned for the fiscal year are New Super Mario Bros. 2, Animal Crossing and a new Brain Age title.

-Nintendo’s future plans include expanding online play through the Nintendo Network, and utilizing digital distribution in a wider capacity.

-Non-game merchandise, such as T-shirts, had sales of 1.551 billion yen ($19.2 million).

-Sales in Japan only dropped 12% compared to the previous year. Total sales in the Americas dropped 46%, while sales in Europe dropped by 34%. 38.8% of all sales were in the Americas, with 33.6% in Europe and 22.9% in Japan.

-Research and development expenses held steady at 52.68 billion yen ($653 million), while advertising costs dropped 23% to 74.59 billion yen ($924 million). Despite their losses, Nintendo acquired 216 new employees worldwide.

-Nintendo 3DS sales came to 13.53 million worldwide last quarter, with 36 million software units sold as well. Nintendo has sold 17.13 million 3DS systems since launch, exceeding expectations, and 45.42 million games. Next year, Nintendo expects to sell 18.5 million 3DS units, and 73 million games.

-Nintendo sold 5.1 million Nintendo DS units around the world over the past twelve months, with 151 million sold life-to-date. They expect to sell only 2.5 million all year, indicating its decreasing popularity compared to the 3DS. They also sold 60.82 million software units, with 900.31 million sold life-to-date, and expect to sell 37 million next year.

-The Wii was not the best-selling system for Nintendo this year, with 9.84 million units sold, not meeting expectations. Nintendo expects to sell even more next year, with a projection of 10.5 million, and has sold 95.85 million Wii systems life-to-date. For software, 102.37 million Wii games were sold this year, with 818.46 million sold life-to-date. Nintendo expects sales of 70 million games next year.

-Right now, the average 3DS owner has 2.65 games, compared to 5.94 games for DS owners and 8.54 games for Wii owners; all these numbers are very slight increases from six months ago.

The full report can be read here.

I’m guessing a lot of the operating loss came from the price reduction on the 3DS; they had to eat a lot of operating costs there. Ideally, that won’t happen again.