Nintendo Cuts Profit Forecast 70Pct Ahead of Wii U Release

Nintendo said that it now expects a net profit of about $75.2 million for this fiscal year (which ends in march 2013), up from a $350.8 million loss in fiscal 2011. However, the new forecast is down from an original forecast of a profit of $250.5 million for the year.

The reduction is mainly due to a lowered shipment volume for the 3DS from 18.5 to 17.5 million units. Nintendo said it shipped more than 5 million 3DS devices in the second and third calendar quarter of this year. The Wii continues to decline much faster than originally planned as the company sold only 1.3 million consoles in Q2 and Q3, which was blamed on a lack of compelling game releases. For the full year, Nintendo now expects the Wii to sell only 5 million units, down from a forecast of 10.5 million half a year ago.

The savior might be the Wii U, which company believes will sell 5.5 million units until the end of March. The company indicated that the console is aggressively priced and will sell at a loss for Nintendo initially. The profits are therefore mainly in software sales: Nintendo believes it can sell every Wii U customer about four games - or 24 million copies in total. Given its history, this is a rather optimistic goal and will depend on a strong third-party lineup for the Wii U ecosystem. There is not much room for failure.

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  • ikyung
    Well, I'll probably get it just because they have Pikmin 3, Monster Hunter 3 and Bayonetta 2.. but, still on the fence about this console..
  • thecolorblue
    Consoles suck...

    just sayin'
  • giovanni86
    I have a friend who's a die hard fan of Nintendo, and for the first time he's going to actually wait and see if its worth it. After all the Wii was just a short thrill. For myself i will be letting my PC handle my gaming life after all the Wii U is just a small upgrade in terms of hardware and in all reality i just hate the idea behind the tablet thing becoming a part of the game. Didn't spend 2k on a tv to watch part of the game on a small tablet. But minus my hate towards it, i hope they do well to encourage Xbox and Sony to get off there chairs and pump out a new console so better ports come out for the PC to utilize the hardware we've already had for well over half a decade.