Nintendo cuts FY2014 sales forecast for Wii U from 9 million to 2.8 million

Nintendo has issued a profit warning blaming poor Wii U console sales and has been forced to cut the sales forecast for the Wii U for the financial year ending in March 2014 from 9 million consoles to 2.8 million. Nintendo now expects to make an operating loss of 35bn yen ($335m; £205m) for the same period. This is a stark contrast to the 100 billion yen (£580 million) in operating profit it had predicted at the start of the financial year.

Its more successful handheld system the 3DS also saw its sales forecast lowered from 18 million to 13.5 million units.

In a statement explaining the revisions, Nintendo president, Satoru Iwata said:

“Sales [of the Wii U in the US and European markets in which we entered the year-end sales season with a hardware markdown were significantly lower than our original forecasts, with both hardware and software sales experiencing a huge gap from their targets. In addition, we did not assume at the beginning of the fiscal year that we would perform a markdown for the Wii U hardware in the US and European markets. This was also one of the reasons for lower sales and profit estimates. The drop in software sales had the largest negative effect on our profit forecasts.”

The full statement can be read here http://www.nintendo.co.jp/ir/en/library/earnings/140117/index.html 

 

Source: BBC.com

Reporter: Soulfinger

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