We already know that despite some of compelling titles, last year has not been very nice to Nintendo. Now, the company itself has warned shareholders that they will be reporting a huge loss at the end of this business year.
Budgeted sales for Wii U and 3DS have also been cut down by a great margin.
“We failed to attain our initial sales levels by a large margin in other countries,” they said.
According to the recent figures reported by NPD and the company itself, they are expected to report an operating loss of $336 Million (35 billion yen). This has been due to the less than expected performance of Wii U and 3DS in the market.
Wii U is now expected to sell 2.8 units by the business year end instead of the 9 million targets. Coming down from 18 million units, 3DS is also expected to sell only 13.5 million units.
Talking about the revised forecasts of software sales, Wii U games are expected to sell 19 million units, down from 38 million while 3DS will sell 66 million instead of the original projection of 90 million games.
They said: “Outside Japan, Nintendo 3DS did not reach our sales targets in the overseas markets, and we were ultimately unable to achieve our goal of providing a massive sales boost to Nintendo 3DS in the year-end sales season,” though the performance of 3DS in US and Japan was commendable.
Nintendo 3DS became the top-selling platform in the last calendar year, with its cumulative sales exceeding 11.5 million units; however, the estimated annual sales of the Nintendo 3DS hardware remain significantly lower than our initial forecast at the beginning of the fiscal year.
While discussing Wii U they have said that despite the release of affordably priced bundles and a hardware markdown in the year end sales, “they fell short of targeted recovery by a large margin.”
Naturally all this has led to the company reporting an overall loss; where they were previously expected to make a profit of $958.2 million (100 billion yen) and a net profit of $527 million (55 billion yen), they are now expected to report a net loss of $239.5 million (25 billion yen).
Same goes for the revenue figures which have been cut down from $8.8 billion (920 billion yen) to $5.6 billion (590 billion yen).
Knowing these figures, what’s your take? Is Nintendo a sinking boat on the international front or is it just a badly received Wii U?