Nintendo posted an operating loss of 4.9 billion yen ($49.8 million), as well as a net profit of 8.6 billion yen ($87.5 million), when the company’s quarterly earnings release was revealed. The operating loss is being attributed to the unprofitable Wii U, as well as intensified advertising for the 3DS, while the company’s net profit is said to be the result of the yen’s depreciation. The result is a strong improvement over their first quarter in the previous fiscal year, which saw a much higher operating loss (10.3 billion yen), as well as a net loss (17.2 billion yen) as it prepared for the launch of the Wii U later that year.

The Wii U, which has entered its ninth month on the market, shipped 160,000 units, bringing the platform’s total to 3.61 million units since launch. Nintendo attributes this to a lack of quality software on the platform this quarter, and expects the situation to improve dramatically later this year, when it plans to release several first-party titles such as Super Mario 3D World and Donkey Kong Country: Tropical Freeze, along with other first and third-party releases. To-date, 14.44 million games have been sold for the console, with a little over a million being sold last quarter.

As for the company’s other platforms, the DS, Wii, and 3DS hardware sales all fell as compared to first quarter of last year, though software sales for the 3DS has risen from 7.39 million to 11 million during the same period as system sales fell from 1.89 million units to 1.4 million. The release of games such as Luigi’s Mansion: Dark Moon and Donkey Kong Country Returns 3D have helped to boost that number, along with the global release of Animal Crossing: New Leaf, which was previously only available in Japan.

Digital sales have also seen a significant increase. Sales through Nintendo’s online distribution increased from 2.3 billion yen last year to 5.7 billion yen this year, an increase of almost 150 percent. Revenue from physical games also increased slightly from 40.2 billion yen to 40.4 billion, though hardware fell severely from 42 billion yen to 35 billion yen.

Looking to the future, Nintendo has decided not to revise its sales projections for the fiscal year. As of now, those projections are 18 million 3DS/XL systems and 80 million games, 2 million Wii systems and 20 million games, and 9 million Wii U systems and 38 million games. The company also plans to achieve 100 billion yen in operating income and 55 billion yen in net income by March of 2014.

So, what do you think? Will Nintendo reach its sales projections by next March? Can Nintendo reverse the Wii U’s fortunes with its gauntlet of first-party titles? Sound off in the comments!

Source: Nintendo

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