Nintendo slashes Wii U forecast
Nintendo’s Wii U really is a world of trouble. The Japanese company had, for a long time, forecasted 9 million units in sales for the 2013 financial year, which ends on March 31 this year. It’s now significantly lowered those expectations.
The company has now said it expects to sell through just 2.8 million of the things, a third of the expected total. Interest in the Wii U is at an unfortunate low, despite big hitting games like Super Mario 3D World having been released.
“Wii U sales fell short of our targeted recovery by a large margin,” Nintendo President Satoru Iwata said in an earnings statement. “Sales 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
“We can no longer expect our financial performance to recover in the current fiscal year.”
The 3DS is doing pretty well, thankfully – but even so, Nintendo’s selling fewer of the handheld than expected. Forecasts are now at 13.5m units, down from 18m units. 3DS games sale forecasts have likewise been slashed from 80m units to 66m. Nintendo is set to make a rather staggering ¥25 billion, or $240 million loss this year, it’s third straight one in a row, and the third ever for the company (which is still valued higher than all of Sony).
It doesn’t look good for Nintendo, or for Iwata, who’s presided over Nintendo for long enough to see the company lose 80 per cent of its value.