Nintendo slashes profit outlook following weak system sales

[Shawn Knight]

Nintendo has revealed that demand for their aging Wii console and recently-released 3DS portable gaming system has been lower than anticipated. The iconic gaming company managed to move just 1.3 million consoles in the last six months due in part to a lack of new titles.

This forced Nintendo to cut sales expectations from 10.5 million units in April to just five million for the full fiscal year ending in March.

The company’s 3DS handheld faired a bit better as five million units have been sold thus far through September. Nintendo originally hoped to ship around 18.5 million units this year; the forecast has since been reduced to 17.5 million.

All of this has had a severe impact on their profit outlook, as one might expect. Nintendo was forced to slash its profit outlook by 70 percent to 6 billion yen ($75 million USD), down from 20 billion yen forecasted earlier this year. Tough international exchange rates were partially to blame but as Ars Technica points out, that wouldn’t have mattered much if their current systems were still selling like they did early on.

Nintendo still aims to remain profitable this fiscal year, however, with much of that hope hinging on the success of their upcoming Wii U gaming console. The company has ambitions to sell 5.5 million systems and 24 million software titles through March 2013. The new entertainment system officially goes on sale November 18 starting at $299.99.

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https://www.techspot.com/news/50600-nintendo-slashes-profit-outlook-following-weak-system-sales.html

 

[oldikes]

I just want an affordable to replace, normal controller for nintendo games....thats compatible with all of them...

 

[Guest]

So basically Nintendo is only making a few billion instead of mega billions this year, even though you'd expect this to happen right at the end of the wii's life span and right before the release of a new console.

Rather see more stories on how many billion sony is losing a month rather than how many billion Nintendo is making in profit.

 

[dawei1993]

So basically Nintendo is only making a few billion instead of mega billions this year, even though you'd expect this to happen right at the end of the wii's life span and right before the release of a new console.

Rather see more stories on how many billion sony is losing a month rather than how many billion Nintendo is making in profit.

Oh how is Sony doing ?? Haven't heard any good news from them lately... Are they dying as well?

 

[noblebandit]

The new Wii U (the first new console since 2006) will cost at least $250, but its competitor, Air-Play Mirroring, works with your iPad or iPhone. You only need a $40 cable to connect the TV set.