Nintendo's third-quarter numbers showed Nintendo's foray into mobile gaming with "Pokemon Go" and "Super Mario Run" is working, but 2017 will be a "critical" year for the Japanese giant to get back into the console market, analysts told CNBC.
The numbers were a mixed bag with sales for the nine months ending December 2016 fell 26.9 percent to 311.1 billion yen ($2.7 billion), while operating income fell 38.1 percent to 26.3 billion yen. Nintendo also chipped its net sales and operating income forecast for its fiscal year ending March 31.
But there were some key bright spots in the numbers which could give investors hope. Nintendo booked a net profit of 64.7 billion yen in its fiscal third quarter, its first quarterly profit in a year. And even more surprisingly, the company said sales of its 3DS handheld games console rose because of Pokemon, something that proves that its mobile strategy is having some success.
For context, In 2015 Nintendo pledged to enter the mobile gaming market. At the time and since then, it has struggled in the console market against the likes of Sony's PlayStation 4 and Microsoft's Xbox one. The Wii U, Nintendo's flagship console, has sold just 13.56 million units since being released in 2012. In comparison, the PlayStation 4 has sold over 50 million units since its release at the end of 2013.