Wii U sales falter, Nintendo forecasts loss
Nintendo braces for a second year of losses in latest earnings forecast
It appears that the Wii U isn’t selling as well as expected, as Nintendo has cut its earnings forecast to a second year of annual loss.
The Japanese company has slashed its forecast to a loss of 20-billion yen (nearly R2-billion, or US$220-million) for the financial year ending March, from a previous forecast of as much in profit.
“It was a somewhat negative surprise,” said Yasuo Sakuma, portfolio manager at Bayview Asset Management, as Nintendo’s forecast was well short of analysts predictions.
Nintendo also cut the sales forecasts of the Wii U (in the year to March 31) from 5.5 million, down to 4 million consoles. 3DS and Wii sales forecasts were also reduced.
In 2012, Nintendo posted its first annual loss in over three decades – a whopping US$530-million loss. While the 2013 forecast is an improvement on this figure, a second year of straight losses cannot bode well for a company that is a cornerstone of the gaming industry.