Nintendo has seen a woeful past few years, mostly due to the problematic performance of its latest game console, the Wii U. However, it appears that, after struggling for a while, the company has finally come back to profitable days.
Following our previous report on Nintendo’s slow but steady turnaround, The Verge has followed up with even more good news for the company. It has made a slim operating profit of 24.8 billion yen ($207 million) and a net profit of 41.8 billion yen ($350 million). Sales were reported down 3.8 percent year over year, but the bottom line shows a 39.5 percent increase over what was initially forecasted. While that’s far from what Nintendo was making years ago with the original Wii, it’s still good news, considering the rough few years it’s had beforehand.
The Wii U continues to show struggles at retail, with only 340,000 units sold over the last three months, just under 10 million units sold overall. While that’s 10 percent up from the previous year, and although great new software like Super Smash Bros. and Bayonetta 2 has brought more gamers on board, it can’t quite keep up with the likes of Xbox One and PlayStation 4. That won’t stop the company from posting a profit, where it expects to make 50 billion yen in operating profit and 35 billion yen in net profit over the next year, with 3.4 million Wii U units sold.
Nintendo may be able to reach that goal, based on recent business decisions that could work in its favor. Its recent mobile deal with DeNA, which will bring popular favorites like Mario and Yoshi to handheld devices (outside of the company’s 3DS line-up), should gain momentum as the first games prepare for release in 2017; and, most recently, the company launched a new promotion-heavy campaign for its upcoming shooter Splatoon, which looks to be a big hit for shooter fans of all ages.
The Wii U will also get a heavy focus next month during the Electronic Entertainment Expo, and even though Nintendo’s highly anticipated Legend of Zelda sequel won’t be present, several other titles, like StarFox and Mario Maker, will be. In addition, surprise announcements could come in the form of a new Nintendo Direct special.
Speaking of Nintendo Direct, a new one arrived earlier this week, posted above, which highlights a number of events for the forthcoming Splatoon, including a timed beta test, called the Global Testfire, which will take place during certain hours this weekend, as well as free post-launch content, gifts with purchase of the game, and upcoming “Splatfest” events, where gamers can let loose with their creative paint-spraying skills. Other promotional events are being planned over the summer as well, leading up to the game’s release later this month, on May 29.
Last but not least, the company will soon have theme park presence, bringing its iconic characters – and game franchises – to life. Quartz has reported that the company has signed a deal with Universal Studios, which will put its many franchises into theme park related rides in its parks all over the world. Nintendo states that “this is an exciting project that will be unlike any other either of our companies have ever done.”
It’s still got some work to do, but it’s safe to say Nintendo finally has things going its way again.