Nintendo's '3DS' struggling, downward revision of profit for the March 2015 year announced
1, 29. 2015
Nintendo made downward adjustments on their consolidated operating profit for the fiscal year ending March 2012, to a surplus of 20 billion yen (the previous term was a deficit of 46.4 billion yen), as it reported on January 28th. This is half the original forecast of a surplus of 40 billion yen. Sales are expected at 550 billion yen (down 4% from the previous fiscal year), 40 billion yen lower than the original forecast.
The bottom line will be a surplus of 30 billion yen (compared to the previous term's deficit of 23.2 billion), which surpasses the original estimate by 10 billion yen, returning to the black after two periods of deficit. The depreciation of the yen against the dollar pushed up foreign exchange profit from its foreign currency assets.
The handheld gaming console 'Nintendo 3DS' performed poorly in sales in Europe and the US. Performance in the end-of-year shopping season in Japan was also unconvincing. Despite the enormous popularity of software for the Yo-Kai Watch series of games, which has become a social phenomenon, the stagnant hardware sales had a negative impact.
Annual dividend is expected at 130 yen, up 30 yen from the previous year. As the bottom line is expected to surpass the original estimate, Nintendo will raise the forecast dividend amount by 10 yen. The company determines the dividend amount based on factors such as the consolidated dividend payout ratio.
At a press conference, CEO Satoru Iwata said that he wanted to focus on selling more Nintendo 3DS consoles abroad, and the Wii U consoles domestically.