Nintendo May Ramp Up Micro Transactions After Q3 2014 Results Announced Today


Posted on January 28, 2015 by Michael Boccher

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Nintendo has announced its Q3 2014 results today. Although profitable, the results did not live up to expectations and, as a result, Nintendo has lowered its full year projections by 6.8% with an expected profit of $255 million. Nintendo has steered away from micro transactions in the past, but this report may see them ramp up their strategy on the matter a little bit. Let’s take a look at the overall results first:

New 3DS XL – 1.3 million total sales

New 3DS – 580,000 total sales

Although a total amount of 7 million 3DS units have been sold in the first 9 months of the year, it’s lower than expected and Nintendo has lowered its expected total sales figures to 9 million total expected sold from the original amount of 12 million

Wii U 1.9 million total sales. Double the average of the previous quarters as 3 million total units have been sold the first 9 months of the year

Game sales Pokemon Omega Ruby and Alpha Sapphire led the way as expected with total sales at 9.4 million in the 3rd quarter alone. In order, Super Smash Bros for 3DS was next with 6.2 million sold followed by Mario Kart 8 with 4.8 million. Super Smash Bros for Wii u came in next with 3.4 million games sold.

Overall sales For Q3 alone, Nintendo came in with a total amount of $2.3 billion and net income overall was at $381 million

We mentioned micro transactions above and we believe it’s a strong possibility we see an increase in how Nintendo handles them in the future based upon these results. Nintendo has always been about the player first, but they are a business first. For years they have been losing money and/or lowering projections for total sales. This past year, it was actually expected that Mr. Iwata would be replaced by share holders as head of Nintendo and surprised a lot of people when it didn’t happen. This was one of Nintendo’s biggest quarters in recent memory and even with that the company has been forced to lower projections for the year by the 6.8% that we mentioned. Simple math tells you that’s not good. An easy way is to slide in micro transactions. It doesn’t have to be anything crazy, but even small transactions can aid in revenue. What if you could pay a flat rate to max out your Amiibo figurine right out of the box? Would you do it? It’s things like this that Nintendo may need to take a look at so as not to keep losing money quarter on quarter. After all, how much longer will share holders put their love of the brand over the love of their wallet as far as Mr. Iwata’s fate is concerned?

It’s a strong possibility and it’s something we’re going to keep an eye on. We’ve reached out to Nintendo after these projections were released and will let you know what we find out. Be sure to check back and we’ll update you as soon as we hear.

 

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