Nintendo is blaming lackluster Wii U sales for a year that saw the company finish $464m in the red.
The games icon said that for the fiscal year ending in March, its flagship home console plodded along at just 2.72 million hardware units sold, a rate slower than Wario afflicted with a thunderbolt.
By comparison, the Wii U's two primary competitors, the Playstation 4 and Xbox One, have sold upwards of 7 million and 5 million units, respectively. Both have been on the market for less time than the Wii U.
"The 'Wii U' hardware still has a negative impact on Nintendo's profits owing mainly to its markdown in the United States and Europe, and unit sales of software, which has high profit margins, did not grow sufficiently, leading to a gross profit of 163.2 billion yen ($1.6bn)," the company said in its annual filing [PDF].
"Total selling, general and administrative expenses exceeded gross profit, resulting in an operating loss of 46.4 billion yen ($464m)."
Nintendo had previously warned of a disappointing turnout for the Wii U. Designed as the next-generation successor to the wildly popular Wii home console, Nintendo's latest effort has failed to strike a chord with the family and casual players who propelled Wii sales, while falling well short of the hardware expectations of the hardcore gamers who form Sony and Microsoft's core markets.
The company noted that other areas of its business remain strong, particularly the 3DS handheld console and its associated software market. The company hopes that upcoming big game releases for the 3DS, including Tomodachi Life and Mario Golf: World Tour will further help to boost sales.
Nintendo has also announced plans to expand its business into other areas of home entertainment. Earlier this year, president Satoru Iwata said in a letter to shareholders that the firm would look to push into the home health and fitness markets as part of an effort to focus on "improving people's quality of life in enjoyable ways" as a business model. ®
Source : http://www.theregister.co.uk/2014/05/07/nintendoh_games_giant_takes_464m_hit_as_wii_u_sales_were_pii_u/
