Nintendo Revenue, Earnings Decline On Crumbling Wii U Sales

Lackluster financials have driven Nintendo to cut its Wii U sales forecasts by two-thirds.

Nintendo Revenue, Earnings Decline On Crumbling Wii U Sales

Nintendo's financial reports for the nine-month period ending December 2013 are out, and it appears Mario isn't having an easy time collecting all those coins.

Revenue was down more than 8 percent from the same time in 2012. Profit margins were still positive, but almost 30 percent slimmer. The rough numbers come as sales of Nintendo's latest Wii U console continue to slump.

The company reported 2.4 million sales in that nine-month period, compared to 3.08 million consoles sold in just the three months following its release in 2012.

And now Sony and Microsoft have released their respective PlayStation 4 and Xbox One consoles, eliminating Nintendo's first-come advantage in the latest round of console wars.

One analyst suggests to Bloomberg Nintendo's timing — that is, first — might have actually been a misstep.

"I think with the Wii U, the announcement of it, the release of it just before a generation of new consoles, where Sony and Microsoft have priced themselves more reasonably, and have learned from the mistakes they made competing against the Wii last time have put them in a more difficult position."

Regardless, CNBC reports Nintendo doesn't look like it will recover momentum. If anything, sales will slow even more.

"Nintendo slashed its Wii U sales forecast by almost 70 percent, to 2.8 million units for the year."

And it's not just consumers feeling the sting of sluggishness. Ars Technica reports several company executives, including President Satoru Iwata and several board members, will also take pay cuts for the next five months.

There is a bright spot for Nintendo in the form of its portable gaming division. Its latest 3DS handheld sold 11.65 million units in 2013.

And Nintendo appears content to stick to its existing mobile lineup. A day before its earnings report, the company told Engadget rumors Nintendo was expanding into smartphone gaming weren't true.

That means no Mario on your iPhone — although Nintendo would probably be happy to sell you a 3DS to get your mobile fix.