Nintendo to post lowered sales forecast as Wii U falters

[Qtis]

High expectations for the Wii U sales has led Nintendo to believe it will make an operating profit of roughly $130 million during this fiscal year. Due to unexpectedly low sales of the Wii successor, the operating profit has turned to a loss of roughly $220 million in its core business.

EDIT: Nintendo expects to have a positive net income of ~$160 due to depreciation of the Yen among other things, but the core sections are expected to still be making operating loss.

Nintendo lowered its sales forecast for the Wii U, launched in the U.S. in November, to 4 million consoles by the end of March from a pre-launch estimate of 5.5 million, and cut the sales outlook for its handheld 3DS by 2.5 million machines to 15 million.

As Nintendo's hardware business suffers, software sales are also dragging. The company slashed the annual sales forecast of Wii U software by 33 percent to 24 million units and that of 3DS software by 29 percent to 70 million units.

Source via Reuters

Source via Eurogamer

Thoughts? Was this really unexpected or was Nintendo too optimistic? Personally I think this is not really surprising due to many factors including the change in gaming (tablets, Phones, etc), but I do expect Nintendo to start making operating profit during the next year or so. Same problems seem to be happening for Sony and Microsoft.

 

[EyeZ]

I think it's a sign of the times, as in the the financial situation all countries are now in, people are either more cautious with their money or they haven't got that surplus of money now.

 

[smurgburglar]

I am unsurprised; my interest in Nintendo has been dwindling ever since I got a 360. Following skyward sword and other m fans would be do right to be cautious when it comes to jumping back in until a more promising entry for their bigger franchises.

 

[indask8]

I don't think its the main reason, but seeing how Nintendo released the WiiU with a buggy rushed firmware (no, the 2.0 version doesn't fix everything) and they said the next update will be release in spring (when that kind of issue should be fixed within a week if you're a SERIOUS company).

They get what they deserved, they're 100% responsible of the situation.

And that's sad because I like my WiiU.

 

[Deleted User]

Who would have thunk it? Releasing last year's games on a new console. Maybe a ZELDA game might save it.

 

[Deleted-185407]

-

 

[emigre]

Did anyone mention Nintendo are doomed yet? Cuz they are doomed.

 

[ReBirFh]

Nintendo was too optimistic, for a long time Nintendo has been depending on Mario to sell (not for the lack of big franchises on it's belt) it failed to migrate Wii owners to WiiU and failed to get the "Hardcore" crowd because they already had the games they wanted on the othe other consoles.

 

[Gnargle]

What? No, Nintendo are back to making a profit: http://www.eurogamer.net/articles/2...s-console-having-a-negative-impact-on-profits

'"Owing to the fact that the Wii U hardware sales have a negative impact on Nintendo's profits, the operating loss was 5.8 billion yen," Nintendo said. "As a result of exchange gains totaling 22.2 billion yen due to the depreciation of the yen at the end of calendar year 2012, however, ordinary income was 22.7 billion yen and net income was 14.5 billion yen."'

 

[Valwin]

Such things are to be expected.

There are no games releases for January and February; that is why they did that last Nintendo direct to show the games, something they didn't do since its release.


Like all past consoles you have to wait a year to know, come holiday 2013 we will know if it counts as a flop or not.

For example take the vita holiday 2012, there we found out it flopped and is dead but it took a year to be sure.

also sales topic o boy

 

[Ethevion]

It's too early for the WiiU to make a profit. Give it some time and the money will rise, but I agree that Nintendo was too optimistic with their numbers.

 

[Qtis]

also sales topic o boy

Not a sales topic, a financial topic. There is a difference in reporting how much x sold versus how a company is doing on the long run. If operating profit is a loss, it's not a good sign on the long run.

While Nintendo expects a profit for the year, it's not due to its own operations. Instead, the Japanese government's measures to affect the price of the yen and "clever accounting by Nintendo" saved Nintendo's total profit.

 

[Bladexdsl]

Well that's what you get for releasing it with NO games. I won't be getting one 'till at least Windwaker HD or unless X comes out before it; they're the ONLY 2 games I'm interested in ATM (new zelda is still a while away).

 

[Guild McCommunist]

also sales topic o boy

IRONY.

 

[Its_just_Lou]

"From KING of the block to teatray and dildo-like controllers: Whut up with dat, Big N?"

(Just a working title, mind...)

 

[heartgold]

This thread sucks. why was mine deleted. They made profit, not a loss.
Need to close this misleading thread.

They have posted a 160M net profit.

 

[Qtis]

This thread sucks. why was mine deleted. They made profit, not a loss.
Need to close this misleading thread.

They have posted a 160M net profit.

It's not misleading.. Read the financial report. Nintendo made overall profit, but has an operating loss. In other words it's core features (software and hardware) are making a loss, while the company as a whole is making a profit not due to market performance, but financial performance in other sections.

 

[Guild McCommunist]

This thread sucks. why was mine deleted. They made profit, not a loss.
Need to close this misleading thread.

They have posted a 160M net profit.

But compared to their sales forecast it's a significant loss.

 

[heartgold]

It's not misleading.. Read the financial report. Nintendo made net profit, but has an operating loss. In other words it's core features (software and hardware) are making a loss, while the company as a whole is making a profit not due to market performance, but financial performance in other sections.

At least expand your news. like post sales of other Nintendo consoles, state net profit in your title.

 

[Valwin]

It's not misleading.. Read the financial report. Nintendo made net profit, but has an operating loss. In other words it's core features (software and hardware) are making a loss, while the company as a whole is making a profit not due to market performance, but financial performance in other sections.

this is a very misleading topic in fact i just read it and i am surprise mods a letting you post this sales topic

god forbids Valwin post one