nintendo

Nintendo will be announcing their financial results for the past year at the end of this month. Even though that is still a ways off, that hasn’t stopped analyst David Gibson–who recently announced the first week Japanese sales numbers of A Link Between Worlds–from sharing his insight Nintendo’s upcoming financial results on his Twitter page. Hit the jump to read what he had to say!

Nintendo’s stocks are up another 4.3% today, and though some believe that Nintendo will announce a change in strategy regarding smartphones, Mr. Gibson disagrees :

“Nintendo – up another 4.3% today…JP broker saying company to announce change in strategy to smartphones on Jan 30th results – we disagree.”

Mr. Gibson continues:

“Nintendo – 3Q results meeting called “Strategy Session and Results Meeting” but doesnt stop some think change is coming. Always called that!”

Nintendo’s priority for their fiscal year (ending on March 14) was to increase the 3DS’ sales internationally. Nintendo succeeded in that goal, with 3DS sales increasing by 21% year over year:

“Nintendo – #1 priority for FY3/14 was improve 3DS sales internationally…+21% YoY in 2H we estimate= done.”

The Wii U is now expected to have sold a total of 4.3 million units for the fiscal year, down from the 6.8 million expected prior. However, the Wii U sold 26 times more units in December than in January in Japan, thanks to Super Mario 3D World:

“Nintendo – WiiU we now forecast 4.3m for FY3/14 down from 6.8m prior, but Dec in JP was 26x Sept levels driven by Super Mario 3D World”

Mr. Gibson suggests that Nintendo will not change their hardware strategy due to the fact that the Wii U’s software is beginning to improve and gain momentum:

“Nintendo – we think mgmt will conclude software line-up is beginning to improve WiiU performance and hence no change in hardware strategy”

For Nintendo’s latest third quarter, Mr. Gibson estimates that the 3DS and Wii resulted in 75% of Nintendo’s gross profit:

“Nintendo – In 3Q we estimate 3DS/Wii is driving 75% of gross profit, so WiiU miss isn’t as big a drag as some expect.Forex huge benefit too.”

Mr. Gibson also expects Nintendo to announce a share buy-back of 5% of the company from the Yamauchi family:

“Nintendo – we expect them to announce share buy-back of 5% of company from Yamauchi family members as they need to pay 45% inheritance tax”

Mr. Gibson also continued to discuss Nintendo’s smartphone strategy:

“Nintendo has put on US$8bn in market cap in 6 months in anticipation moving to smartphones. We dont think so,downgraded to Underperform.”

Reggie recently spoke about Nintendo’s “experiment” with marketing through smartphones; however, David Gibson does not believe that this will result in change:

“Nintendo – Reggie Dec 19th comments on “experimenting” on smartphones has many thinking change coming. Dont think so http://t.co/n3Ss3cJTtt

It’ll be interesting to hear the announcements Nintendo has in store regarding their finances. We will know this information on January 30, but until then, Mr. Gibson’s tweets provide some valuable insight into what to expect from Nintendo’s upcoming financial report.

Source: Twitter
Via: Nintendo Everything
  • Melena

    great post alex!

    • Alex

      Thanks! (:

  • I can see Nintendo doing more Smart Phone related apps in the vein of Miiverse, or eShop, or something gaming related like how there is the Pokedex available as an App on iPads and iPhones….

    But I think people are dreaming some big dreams if they believe Nintendo plans on putting their first party exclusive games out on other platforms.

    That’s just a number one no no for them… and honestly would be the worst thing they could do for their business. The 3DS is doing incredibly well, why would they put their games on what many consider a competing platform.

    I don’t think people should be overly alarmed. I don’t think anything drastic is coming along.