Nintendo Profit Plunges 30% On Wii Woes

Written By Unknown on Rabu, 29 Januari 2014 | 16.01

Japanese games manufacturer Nintendo has seen its nine-month profit plunge by 30%, prompting its boss to cut his pay in half.

The slump was blamed on poor sales of the Wii U console as gamers flock to the Microsoft Xbox One and Sony PlayStation 4.

Company president Satoru Iwata said he would slash his salary for five months to atone for the firm's woes.

He said other directors would see their pay cut by an average of 25% in the same period.

Sales falls occurred in all territories, with the biggest decline in the home Japanese market being 13% compared to the previous year.

Nintendo's announcement comes shortly after it warned of making a loss and a drastically reduced its forecast for full-year sales.

It said earnings reached £60m in the nine months to December, with revenue down 8.1% at £290m.

The company's operating loss in the period was £9.2m, down from a profit of £33m. It now expects a full-year loss of £145m.

Total hardware sales across its Wii U, DS, 3DS and Wii brands fell by 6 million units, year-on-year. No brands increased sales.

The high margin software sector saw sales fall by 21.5 million units year-on-year, with DS software down 71% and Wii down 48%.

However, it did see software growth in the Wii U of 37% and 3DS of 45%.

Nintendo owns the Donkey Kong and Super Mario brands and its shares have dropped more than 11% in a month.

The plunge started after it reassessed the Wii U sales forecast from 9 million consoles to 2.8 million for the year.

Experts have slammed the new system's limited game selection, preferring the additional features available on competitors' products.

:: Watch Sky News live on television, on Sky channel 501, Virgin Media channel 602, Freeview channel 82 and Freesat channel 202.


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