Nintendo Projects Losses After Wii U Fell Below Expectation By Two Thirds

Nintendo Projects Losses After Wii U Fell Below Expectation By Two Thirds

Poor 3DS and Wii U market performance has forced Nintendo to revise its full year fiscal expectations to be on the negative side.

Nintendo originally expected to sell 9 million Wii U units in the fiscal year ending March 31st, 2014. Less than 10 weeks to that date, the company can see clearly now that 2.8 million units is a more realistic number.

The original Wii and Nintendo 3DS too have sold well below Nintendo's original expectations. The company now expects to sell 13.5 million 3DS units and 1.2 million Wii units; down from projected 18 million and 2 million respectively.

Software sales have been hit by forecast reductions as well. Nintendo now expects to sell 66 million 3DS games and 19 million Wii U games, down from earlier expected 80 million and 38 million games respectively.

Al those cuts have decreased Nintendo's expected revenues from previously forecasted 920 billion yen ($8.8 billion) to 590 billion yen ($5.7 billion). As a result, the company now expects losses of 25 billion yen ($239.6 million), swinging from the previously projected profits of 55 billion yen ($527.2 million).

Worse yet, revised Wii U sales forecast means that the console will have sold a total of 6.25 million units by the end on March 2014, nearly 15 months after its November 2012 launch. For comparison, PlayStation 4 and Xbox One sold 4.2 million units and 3 million units respectively during their first six weeks in market.