Takashi Amano & Cliff Edwards are full of bad news ahead for Nintendo:
Nintendo Co.’s prospects for meeting its profit and sales forecasts for this year are diminishing after Sony Corp. and Microsoft Corp. each sold more game consoles in 24 hours than the Wii U maker did in nine months.
Not good — especially when you consider:
President Satoru Iwata vowed in October he would meet a forecast for 100 billion yen ($974 million) in full-year operating profit and 9 million units in Wii U sales. Analysts are skeptical, with the average estimate for profit at 57 billion yen and for sales at 6.2 million units.
That’s a huge gap. We’ll see, but it’s definitely not looking good:
Those moves may not be enough to make up lost ground, as the company sold just 460,000 Wii U machines in the six months ended Sept. 30, about 5 percent of its target for the fiscal year. Nintendo reported a net loss of 8 billion yen in the quarter ended Sept. 30, saying Wii U hardware “still has a negative impact on Nintendo’s profits.”
Five percent of the yearly target, six months in. And:
Shares of Nintendo have lost 82 percent of their value since closing at 72,100 yen in November 2007, according to data compiled by Bloomberg.
Yikes. And that’s with the stock gaining 41 percent this year. And:
The Wii U features a tablet-like, 6.2-inch touchscreen controller that lets players connect wirelessly to the console and shift the display between the device and a television. In the nine months from January through September, the company sold 850,000 — fewer than Sony and Microsoft did during the first day their new consoles were released.
Hard to overstate just how awful and embarrassing that is — especially since those consoles don’t seem that great either.
This is turning very ugly very quickly for Nintendo — which is sad, but not shocking.