Nintendo Posts Financials for Q4 2015: Return to Profit

As expected, Nintendo has released their numbers for Q4 2015 and the Fiscal Year 2015. While the good news is that they have a degree of profitability, the bad news is that their projected hardware sales missed the mark. We also learned that while Mario Kart 8 has an extraordinary attach rate of over 50%, the Wii U still hasn’t crossed the 10 million mark. In over two years.

Nintendo reported a net profit of 23 billion yen. It marks their first annual profit in four years. For the quarter, they netted an Operating Income of 6 billion yen, Net Sales of 106 billion yen, and a Net Income of 17 billion yen. However, they expect a loss of 19.18 billion yen for the quarter, although a year earlier, they experienced a net loss of 33 billion yen, so things are on the up.

Nintendo set expectations for their Wii U and 3DS platforms when they previously predicted target sales of 3.6 million and a downward cast of 9 million respectively. Actual numbers show that the Wii U only mustered 3.38 million for the year, and the 3DS family sold 8.73 million, which is down 25% from the same results last year. The Wii U to date has sold 9.54 million units worldwide, while the 3DS family sits at 52.06 million, not far from the 50 million last reported in February.

In terms of software, the Wii U charts are topped by all manner of Mario games and Nintendo Land. Mario Kart 8 has sold 5.11 million, followed by New Super Mario Bros. U at 4.81 million. Nintendo Land and Super Mario 3D World round out the top of the list with 4.68 and 4.11 million each. Super Smash Bros. for Wii U reached 35% of the install base at 3.65 million. You can rest assured that, despite the small install base, these Mario games were profitable, and will surely direct Nintendo on what their follow-ups will be on the NX.

On the 3DS side, Pokémon Omega Ruby and Alpha Sapphire sold almost 10 million since their November launch, while Pokémon X and Y are the 3DS’ best-selling games at a combined 13.85 million units. The two Mario games from 2011 (so critical in reviving the 3DS as a platform), Super Mario 3D Land and Mario Kart 7, also continue to sell with 10 million and 11.70 million units respectively.

Nintendo plans to generate profits in the upcoming year through continued DLC releases, more incentives for amiibo, and their partnership with DeNA on mobile, the first game we will see later this year (presumably in the fall). Iwata’s Q&A with investors is expected sooner than later, so we will keep you abreast of any announcements.

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A man with a plan. My favorite video game franchise is Pokemon, but his favorite video game is Resident Evil 4. I can also tell you trivial cartoon factoids.