GamesBeat

Nintendo slashes forecast from a profit to a big loss

Above: Wii U Zelda version

Image Credit: Nintendo

Nintendo had a disastrous holiday season because of  weak sales of its Wii U video game console.

Trumped by the Sony PlayStation 4 and the Microsoft Xbox One, the 16-month-old Wii U was under-powered, and its tablet-like game controller didn’t resonate with gamers. As a result, Nintendo slashed its forecast tonight for the fiscal year ending March 31.

Nintendo previously estimated full-year sales of 920 billion yen or $8.81 billion in U.S. currency. Now it has slashed that forecast to 590 billion yen, or $5.65 billion. The company previously expected net income of 55 billion yen or $530 million. Now it expects a loss of 25 billion yen or $240 million.

The company said, “Software sales with a relatively high margin were significantly lower than our original forecasts mainly due to the fact that hardware sales did not reach their expected level. As a result, the total of selling, general, and administrative expenses will surpass gross profit, which leads to an operating loss.”

The yen will be weaker than the original expectations at the start of the year. That’s all the company said for now, and formal numbers will be posted later.

Nintendo’s 3DS is still strong, but the company didn’t provide any details on how well the portable system, and the new 2DS system, sold during the holidays. Satoru Iwata, chief executive of Nintendo, has been under pressure as a result of the low sales of the Wii U. He made no comment on the revised forecast.

More about the companies and people from this article:

Nintendo of America is consistently amazed and humbled by the passion and loyalty of our fans. Our hope is that this Page can be a place where that excitement can live, thrive and be shared. And while we love your creativity and are he... read more »

Satoru Iwata is the current president of Nintendo. He became president in 2002. Satoru used to work at HAL as a programmer and helped create major games such as Kirby's Dream Land. In 1993, Satoru was promoted as the president of HAL L... read more »

Powered by VBProfiles


Screen Shot 2014-03-25 at 2.00.11 PMGamesBeat 2014 — VentureBeat’s sixth annual event on disruption in the video game market — is coming up on Sept 15-16 in San Francisco. Purchase one of the first 50 tickets and save $400!
0 comments

GamesBeat is your source for gaming news and reviews. But it's also home to the best articles from gamers, developers, and other folks outside of the traditional press. Register or log in to join our community of writers. You can even make a few bucks publishing stories here! Learn more.

You are now an esteemed member of the GamesBeat community. That means you can comment on stories or post your own to GB Unfiltered (look for the "New Post" link by mousing over your name in the red bar up top). But first, why don't you fill out your via your ?

About GamesBeat