Financial Results Briefing: Six-Month Period Ended September 2013

The financial results for the six-month period ending September 30, 2013, reflect a challenging transitional phase for Nintendo as the company navigated ongoing operating losses while attempting to stabilize its hardware and software ecosystem. During this period, net sales reached 196.58 billion yen, a slight decline from the 200.99 billion yen recorded in the same period of the previous fiscal year. Despite a modest improvement in gross profit—which rose to 62.04 billion yen from 44.35 billion yen—the company reported an operating loss of 23.28 billion yen. This loss was partially mitigated by significant non-operating income, specifically 18.36 billion yen in foreign exchange gains, which helped push ordinary income into positive territory at 1.25 billion yen and resulted in a net income of 600 million yen.

The company’s performance was heavily influenced by currency fluctuations, as the yen weakened against the U.S. dollar and the Euro compared to the prior year. This volatility impacted both consolidated net sales and non-consolidated purchase costs. Operationally, the focus remained on the Nintendo 3DS and Wii U platforms. Software sales were bolstered by key titles such as Animal Crossing: New Leaf, which sold 2.49 million units globally during the period, and Luigi’s Mansion: Dark Moon, which reached 1.91 million units.

The strategy moving forward, as outlined in the product launch schedules, emphasizes a robust pipeline of first-party titles for both the 3DS and Wii U, alongside third-party support. The company continues to manage risks associated with hardware adoption rates and market competition, relying on a diverse release calendar to drive engagement across Japan, the United States, and Europe through the remainder of the fiscal year.