As a result, nintendo has had to significantly lower its sales forecast for the fiscal year that runs until the end of march. However, profits are expected to be much higher than previously thought thanks to more favorable exchange rates.
Game consoles are facing increasing competition from affordable games for smartphones and tablets. Nintendo has sold 3.06 million units of the wii U worldwide since its launch in november. Contrary to the expectations of some market observers, the wii U did not perform significantly worse than the significantly cheaper first wii console six years ago.
At that time, nintendo sold 3.19 million units during the christmas season. By the end of the fiscal year in march 2007, however, the company had already sold more than 5.8 million wii consoles. The wii U will clearly miss this mark with expected sales of four million. Also, the wii was hard to get at first, while there are no bottlenecks with the wii U.
Even now, the original wii with price reductions and special offers since last march went over the counter 3.5 million times. The aged console is thus on the threshold of the 100 million mark. In mobile game consoles, nintendo has increased sales of its 3DS model with three-dimensional images by more than ten percent to 12.7 million units so far this year, despite increasing competition from smartphones and tablets.
Already in the christmas quarter, the weaker yen brought nintendo back into the black despite high spending for the debut of the wii U. Profits reached a good 14.5 billion yen (118.6 million euros) in the third quarter, which ended in december.
In view of the heavy losses of recent months, the japanese games specialist is still deep in the red at 48.3 billion yen (394 million euros) after the first nine months of the fiscal year. In the annual balance sheet in three months, the bottom line is expected to be a profit of 14 billion yen (114 million euros). Previously, nintendo had expected an annual profit of only 6 billion yen. However, nintendo cut its sales forecast for the fiscal year by a good 17 percent to 670 billion yen (5.46 billion euros).