Nintendo Warns of Huge Fiscal-Year Loss17 Jan, 2014 By: Erik Gruenwedel
Gaming manufacturer says sales of Wii U nearly 70% below projections
Nintendo Jan. 17 said it expects to report a $240 million fiscal-year net loss, instead of a previously-announced $959 million operating profit as sales of the flagship Wii U significantly underperformed.
Indeed, Nintendo, creator of the venerable "Super Mario" video game brand, had projected sales of 9 million Wii U units — a tally it now expects will only reach 2.8 million at the end of the March 31st fiscal year.
In a statement, Satoru Iwata, president of Nintendo, said the company pulled out the stops heading into the end of 2013 with promotions, discounts and advertising. However, the campaigns came against the much-anticipated launches of new consoles from Microsoft (Xbox One) and Sony (PlayStation 4).
“It is now expected that our sales will fail to meet our previous forecast by a large margin,” Iwata said.
Meanwhile, Nintendo 3DS became the top-selling platform in the last calendar year, according to The NPD Group, with cumulative sales exceeding 11.5 million units. However, the estimated annual sales of the Nintendo 3DS hardware remain significantly lower than the company’s initial forecast at the beginning of the fiscal year.