Continuing the videogame industry talk, the latest word out of Nintendo is just brutal. Many of us have been expecting this, of course, but it’s actually worse. Much worse. Mat Smith:
It’s not even financials season yet, but Nintendo is trying to lower expectations in advance. In a statement today, it’s announced that it’s reassessed unit sales for its flagship Wii U console, hacking it down from 9 million for April 2013 - March 2014 to just 2.8 million — less than a third of the original estimate. It’s also less than the number of Wii Us that Nintendo sold in its launch year. That was 3.45 million, if you’re counting.
2.8 million Wii Us. The original target for this year was 9 million. And the bearish analyst estimates were 6.2 million. Not good.
As a result, the company is now forecasting a 35 billion yen ($336 million) operating loss. (For the third year in a row.) Just this past October, Nintendo President Satoru Iwata vowed he would hit his forecast of 100 billion yen ($974 million) in full-year operating profit. (A huge miss for the second year in a row.) Really not good.
And just to pre-empt all the Nintendo apologists 1, it’s not like the handheld numbers were good either. The company originally expected to sell 18 million 3DS systems last year. They’re now forecasting something closer to 13.5 million.
A total blood bath across the board.