Nintendo releases its financial results for the first quarter of the current fiscal year, reporting a massive decline in sales compared to the same period in 2015.

The recent success of Pokemon GO saw Nintendo’s stock break stock market records, but that success promptly left as quickly as it came when investors realized that the Big N had no hand in developing the popular mobile game, causing the company’s stock to plummet just days after reaching a soaring high. This obviously wasn’t great news for Nintendo, but all that aforementioned stock news has turned out to be just the tip of a massive financial iceberg.

Nintendo has just released its financial results for the three-month period spanning from April 1 to June 30, 2016 – and the results aren’t pretty. Net sales for the first quarter totaled approximately 62 billion yen ($587.8 million), which represents a massive 31.3% drop when compared to the same period in 2015. This drop was attributed to a big decrease in sales of both the 3DS and the Wii U, as well as the performance of a stronger Japanese yen, the appreciation of which caused significant exchange losses.

In terms of console sales, the Wii U sold just 220,000 units during the three-month period, which represents a whopping 53% year-over-year drop. With Wii U sales finally passing 12.6 million just six months ago, this latest financial report doesn’t paint a pretty picture for Nintendo’s struggling console. As for the 3DS, it performed better than the Wii U, but it still registered a year-over-year sales drop of 7% to 940,000 units.

Nintendo Logo with Characters

It isn’t all bad news though, as software sales were up in the first quarter for the 3DS. This was attributed to the release of Fire Emblem Fates in Europe and the release of Bravely Second: End Layer in the U.S., both of which “got off to a good start” according to Nintendo. With the benefit of “steady sales” of Kirby: Planet Robobot following its global release, worldwide software sales for the 3DS rose by 7%. As for the Wii U, global sales rose 3% year-over-year, and this was attributed to the “steady sales” of 2015’s Splatoon and Super Mario Maker.

In terms of what to expect for the second half of 2016, Nintendo is banking on the upcoming Pokemon Sun and Moon titles to revive its fortunes, as well as the upcoming mobile games for Fire Emblem and Animal Crossing. And finally, Nintendo reiterated that its next gaming console – the NX – will be available worldwide in March 2017, though no further details were given out about the console, nor were the rumors of the NX being a handheld denied or confirmed.

Source: Nintendo (via Polygon)

tags: 3DS, Nintendo, Wii U