Nintendo has released their last quarterly results, for Q3 2012 (or the Holiday season) and its a mixed bag.
They cut their forecasts on the Wii U hardware and software sales but this seems largely due to the lack of Wii U software releasing this month and in February. Other than Rayman Legends, there are no notable Wii U releases until March.
Nintendo posted a net income of $160 million while revising net income down 17% over previous estimates. The Wii U has shipped 3.06 million units worldwide with 1.32 million of those units sold in North America, 830k in Japan.
Nintendo now plans to have software sales on the Wii U closer to 16 million instead of 24 million by the end of their fiscal year. Surprisingly the Wii U has a 3 to 1 attach rate for software when most estimates pegged it at barely above 1 game per console. They’re also downscaling their Wii U hardware shipment goal from 5.5 million to 4 million.
Good news is that 3DS software sales are up by 40% and hardware sales are up by 11%.
Looks like Nintendo is back to making profits each quarter. They do sell the Wii U at a loss currently but hopefully that changes soon. I would think a new Wii U Game Pad that costs less to produce and has a smaller screen would help bring the system’s costs down dramatically.