Consolidated Financial Highlights: Three Months Ended June 2013

Nintendo’s consolidated financial results for the three months ended June 30, 2013, reflect a period of transition characterized by an operating loss despite a return to net profitability. The company reported net sales of 81.5 billion yen, a 3.8% decline from the same period in the previous year. While the company recorded an operating loss of 4.9 billion yen—driven by increased research and development costs for Wii U software and higher advertising expenditures for the Nintendo 3DS—it achieved an ordinary income of 14.8 billion yen and a net income of 8.6 billion yen. These bottom-line gains were primarily attributed to significant foreign exchange gains resulting from the depreciation of the yen.

The company’s performance was heavily influenced by its hardware and software portfolio. The Nintendo 3DS platform demonstrated strong momentum, with global software sales reaching 11.01 million units, bolstered by the release of key titles such as Animal Crossing: New Leaf. Conversely, the Wii U platform faced challenges, with hardware sales totaling 0.16 million units, reflecting a lack of first-party titles during the quarter. Despite these hardware struggles, the company maintained its full-year forecast for the fiscal year ending March 31, 2014, projecting net sales of 920 billion yen and a net income of 55 billion yen.

Geographically, the company remains globally diversified, with 63.7% of its sales generated outside of Japan. The financial position remains robust, with total assets of approximately 1.4 trillion yen and a capital adequacy ratio of 88.6%. Moving forward, the strategy centers on accelerating sales momentum for the 3DS through global releases and revitalizing the Wii U platform by focusing on a pipeline of major first-party titles and cost-reduction efforts for hardware production.