Nintendo Financial Reports Worsen; $336 Million Loss Expected
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?