Nintendo fails to meet targets in latest financial report, posts predicted loss of $837 million
For the full year, ending 31 March 2012, Nintendo has cut its earnings forecast down for its 3DS console, as well as for Wii.
The previous 27 October 2011 report predicted sales of 790 billion yen ($10 billion) an operating income of 1 billion yen ($12.8 million) and a net loss of 20 billion yen ($257 million).
Now, stronger than expected yen appreciation and disappointing sales have led it to alter that forecast, down to 660 billion yen ($8.5 billion) sales, an operating loss of 45 billion yen ($580 million), and a net loss of 65 billion yen ($837 million)
Everything must go
Another notable area in which Nintendo cut its previous forecasts were in its hardware and software sales figures.
It now expects to sell 14 million 3DS units compared to the predicted 16 million, whereas the Wii is now expected to sell 10 million units rather than the predicted 12 million.
3DS software sales forecasts were also down, from the previously predicted 50 million units, to 38 million units.
For the nine month period ending December 2011, Nintendo posted net sales of 556 billion yen ($7 billion), down from 808 billion yen ($10.4) for the same period the previous year.
Nintendo posted an operating loss of 16 billion yen ($206 million) and a net loss of 48 billion yen ($618 million), compared to the same period in 2011's operating income of 159 billion yen ($2 billion) and net income of 50 billion yen ($644 million).
It wasn't only price cuts to the 3DS and disappointing sales which led Nintendo to this point. One of the contributing factors to this downside was the disappointing state of the yen.
A 78.3 percent share of Nintendo's sales were outside its home country, leading to exchange losses of 53.7 billion yen ($692 million).
The hard sell
In terms of hardware, 11.43 million 3DS units were sold over the nine month period, with total sales now reaching 15.03 million units.
Wii sold 8.96 million units, down from 13.72 million units the previous year, with total lifetime sales now at 94.97 million units.
The DS, meanwhile, sold 4.64 million units, down from 15.7 million units yoy, reaching the lifetime total sales figure of 151.06 million units.
[source: Nintendo (PDF), via Andriasang]