Nintendo has released its financial results for the first half of this fiscal year (April 1, 2016 through September 30, 2016). It shouldn’t be surprising to learn that their business is down when compared to last year’s numbers, since games like Splatoon and Super Mario Maker drove software and hardware sales for Wii U. This year Nintendo has all but abandoned the system and the numbers definitely show that.
Net sales are down 33% during the first six months when compared to the same time period last year. Profit is 34% lower than last year and after expenses are factored in, the company is sitting with an operating loss. However, not all is doom and gloom. Thanks to the success of Pokémon Go, Nintendo saw a 700% increase in share of profit of entities accounted for using the equity method, which helped more than double its non-operating income from last year. Unfortunately that was all wiped out thanks to foreign exchange rate losses.
The company received an infusion of cash by selling the majority of its stake in the Seattle Mariners baseball team. This helped Nintendo to reach a profit that was over three times higher than last year.
In other words, Nintendo is doing better financially this year versus last year thanks to Pokémon Go and the sale of the Mariners. Its main video game business has taken a beating as Nintendo tries to transition from the Wii U to the Nintendo Switch. This has been extremely bumpy, since it had to miss this year’s holiday shopping season to make sure enough software would be ready for launch in March of 2017.