Consolidated Results for the Years Ended March 31, 2013 and 2014

Key insights

6 takeaways

01
Nintendo posted a net loss of 23.2 billion yen and an operating loss of 46.4 billion yen for the fiscal year ended March 31, 2014.See it on page 1
02
The losses were driven mainly by sluggish Wii U hardware sales and the price markdowns that followed.See it on page 3
03
Despite the downturn, Nintendo retained 1.1 trillion yen in net assets and aims to return to profitability in fiscal 2015 through key software releases for the 3DS and Wii U.See it on page 3
04
Nintendo is pivoting to diversify beyond gaming hardware, expanding its Quality of Life sector and better monetising its extensive character intellectual property to stabilise revenue.See it on page 5
05
Performance data spans Japan, the Americas, and other international markets.See it on page 14
06
Governance changes include the nomination of Naoki Mizutani as an Outside Director and the retirement of Director Kaoru Takemura effective June 27, 2014.See it on page 16

Summary

Nintendo faced significant financial headwinds during the fiscal year ending March 31, 2014, recording a net loss of 23.2 billion yen and an operating loss of 46.4 billion yen. These results were primarily driven by sluggish hardware sales for the Wii U platform and the subsequent necessity of price markdowns. Despite this downturn, the company retains a robust financial foundation, supported by 1.1 trillion yen in net assets, and remains committed to achieving profitability in the 2015 fiscal year through the release of key software titles for both the 3DS and Wii U systems.

The company is currently navigating a strategic pivot to diversify its business model beyond traditional gaming hardware. This transition includes an increased focus on the Quality of Life sector and a concerted effort to maximize the commercial value of its extensive character intellectual property. These initiatives represent a broader attempt to stabilize revenue streams and reduce reliance on hardware performance alone.

Geographically, the performance data encompasses operations across Japan, the Americas, and other international markets. Alongside these financial and strategic adjustments, the organization is undergoing internal governance changes to support its future direction. This includes the nomination of Naoki Mizutani as an Outside Director and the scheduled retirement of Director Kaoru Takemura, effective June 27, 2014. These leadership transitions are intended to provide the necessary oversight as the company seeks to revitalize its market position and return to sustainable growth.