Nintendo posts another tough quarter as profits turn to losses
The company generated a loss during the three months that ended in June -- a contrast to the small profit a year earlier.
Nintendo's troubles continue to pile up, as its latest earnings reveal.
Nintendo reported on Wednesday 74.7 billion yen ($730.5 million) in revenue during the quarter that ended June 30, representing an 8.4 percent drop compared with the same period a year ago. Perhaps more concerning to investors, the 8.6 billion yen profit Nintendo generated during that period in 2013 turned to a 9.9 billion yen loss this year.
The game company kept its reactions to the troubling quarter close to the vest. In some cases in the past, Nintendo has posted a comment or two in its earnings report describing in more detail what happened during the quarter and what might have led to its success or failure. This time around, Nintendo only spoke of changes in accounting procedures and sales of some of its more popular titles.
Nintendo has been suffering over the last several quarters as sales of its Wii U hardware have limped along and its own game titles have been less popular than anticipated. Nintendo chief Satoru Iwata has stubbornly stuck with the same strategy, asserting that Nintendo's Wii U, 3DS, and first-party games can stage a comeback and play a bigger role in crucial markets, like North America. Results like those released on Wednesday, however, may call that strategy into question among some investors.
Still, it wasn't all bad news for Nintendo during the last quarter. The company reported that kart-racing game Mario Kart 8 sold 2.8 million units worldwide during the period, significantly boosting its Wii U software sales during the period to 4.4 million units. During the same period in 2013, Nintendo sold just 1 million software units on the Wii U.
Nintendo's Wii U sales were also stronger during the period, with the company selling 510,000 units worldwide during the quarter. Just 160,000 Wii U units were sold during the same period last year.
CNET has contacted Nintendo for comment on the earnings. We will update this story when we have more information.