Weaker-than-expected 3DS sales push Nintendo to slash forecast

Nintendo lowers full-year sales forecast over sluggish hardware and software sales in overseas market and yen appreciation; company expects to sell 5.5 million Wii U units by April.

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Nintendo has lowered its full-year sales forecast for the fiscal year ending March 31, 2013 due to weaker than expected 3DS sales in overseas markets and unfavorable yen appreciation. The Mario maker had previously forecast ¥20 billion ($250.7 million) in profits, but now expects that figure to come in at ¥6 billion ($75.2 million), down a significant 70 percent.

3DS hardware sales jumped by 65 percent and software sales surged 134 percent during Nintendo's six-month period ended September 30, but this was not enough to offset the ongoing appreciation of the Japanese yen, Nintendo said.

According to Nintendo's figures, the company's currency exchange losses totaled ¥23.2 billion ($290 million) during its latest fiscal period.

Total 3DS hardware sales for the period hit 5.06 million units, with New Super Mario Bros. 2, Super Mario 3D Land, and Mario Kart 7 helping push software sales to 19.03 million units.

Pokemon Black and White 2 sales totaled 4.26 million life-to-date, Nintendo said. DS sales fell to 980,000 units during the period, with software sales coming in at 17.3 million units. Nintendo attributed this downturn to "accelerated generational change" to the 3DS.

As for Wii sales, Nintendo has moved over 1 million copies of Mario Party 9, with total hardware and software sales for the six-month period coming in at 1.32 million and 23.74 million units respectively. This performance was due to "few new titles" released during the period.

Regarding the Wii U, Nintendo said it expects to sell 5.5 million consoles and 24 million pieces of software by April 2013.

In all, for the fiscal half-year, Nintendo posted revenue of ¥201 billion ($2.5 billion) down 6.8 percent from the 215.7 billion ($2.7 billion) it took in during this time last year. Losses came in at ¥28 billion ($351 million), compared to losses of ¥70.3 ($881 million) this time last year.

Discussion

185 comments
EdwardoMario16
EdwardoMario16

Hey, Nintendo. I have a suggestion if you want your 3DS to sell.

 

Stop making mediocre games, slapping Mario's mug on it, and make games that people may actually want to look forward to.

00LiteYear
00LiteYear

It wouldn't be surprising if they make a profit; Nintendo has been ahead of the pack, in terms of innovation. If it wasn't for their touch screen DS, the Vita probably wouldn't have it either. Same for Playstation Move or Kinect.

TrueProphecy22
TrueProphecy22

Maybe a new Pokemon game for the 3DS could spike sales.

 

As to the WiiU, honestly, I think 5.5 million units in six months might be a bit fanciful... especially if they run into the similar supply problems that they had with the Wii.

vault-boy
vault-boy

Having a system with terrible 3D right as people started to get sick off it was a bad idea. I MIGHT consider buying it if they, lets say, lowered the price $50. Take out the shitty 3D, its not like that hardware is that powerful. 

theKSMM
theKSMM

Wow, downgraded from $250M to $75M?!?  That's a huge downgrade!  Japan's economy must be doing gangbusters for the yen's appreciation to overtake increased sales like that.  I bet they're hoping the US economy recovers real soon.

hitechgraphs
hitechgraphs

3ds wasn't ever a reliable source of incoming found,just pure overhype ,so the last chance Nintendo is the wiiu. If this doesn't sell as Nintendo expect,then bye bye Nintendo bye bye.

tgwolf
tgwolf

I would say there is definitely a lesson to be learned here, and it little to do with forecasting revenues but everything to do with sales and the price...

Araknie
Araknie

Weaker? Nintendo, you are doubling DS sales in the same period...

Harrydapro
Harrydapro

Make some Zelda, make some Pokemon.

BlazeODU
BlazeODU

Uh... guys... You DO realize that Christmas is coming right? I expect 3DS sales to jump quite a bit once Christmas roles around. When do people usually get new consoles? Christmas. When do people usually get a lot of spending money so that they can get these consoles? Christmas.

 

Trust me Nintendo, the 3DS will be fine, as for the WiiU? You better make sure you have enough for supply and demand if this console is as good as you hope it is... aw who am I kidding, the WiiU's gonna be awesome...

SnakeEyesX80
SnakeEyesX80

It's going to be the same BS with the WiiU that they did with the Wii. They won't be readily available on store shelves until 6-8 months after launch, then blame slow manufacturing.

 

I remember it took me almost 4 months to get a Wii after launch. I doubt Nintendo will even be able to produce 5.5 million units by April. lol

gargungulunk
gargungulunk

Good to know; maybe they'll translate some rpg's now.  (stares @ BD:FF)

...and make more 3DSXL colors. 

 

There just isn't that gotta-play game yet.  Meanwhile, there are a few titles that I'll pickup after the fact though.

i-rock-socks
i-rock-socks

release more great games and im sure people will come around; 1 great game every 3 months is blah

Bowser05
Bowser05

5.5 million by April? Well assuming they actually have enough in stock for people to actually BUY that many...

GH05T-666
GH05T-666

Lower the price again and ill buy one Nintendo!

mario-nin-freak
mario-nin-freak

I knew this article was written by Eddie before I clicked on it.

craigprime
craigprime

Correct if I'm wrong, but it looks like sales of hardware and software isn't the cause of loss. All the loss seems to be in currency exchange. It's not the Nintedo's fault. It's the rest of the world that's the problem.

JasPlun
JasPlun

If Obumer gets re-elected watch what happens to the economy.

 

jedinortd_basic
jedinortd_basic

I work at a retail store and our 3ds sales have gone up. We are even out of stock on most models. I just don't think people want to spend that much money at the moment. Plus, we've still been selling a lot of DSi's. Even tho I tell people they might as well upgrade lol. 

brosim1104
brosim1104

i like how gamespot stoped posting npd fiugres and just posts when nintendo numbers arent that good. and someone forgot to note,  that nintendo 3ds (XL model included) sales per month way more that every other console combined. In other words, The industry has gone down 40% due to lack of new hardware and fast rising (-yet) mobile gaming. 

dom28
dom28

 @hitechgraphs This little loss doesn't even phase Nintendo. The difference between Nintendo and other companies is, they actually have the money to bounce back whenever they want. Not saying I liked the Nintendo Wii, because i never bothered to purchase one at all, but you have to admit Nintendo's marketing system is smart and this is literally a small piece of gold from their enormous pot. And I think what's really sad here isn't just the fact that nintendo 3ds isn't selling as good as they thought it would, but the fact that the vita is still beneath it in terms of sales is pretty sad. Honestly seems more people these days will pick up a smart phone to have a all in one phone/gaming/app experience rather than pay the same amount for a vita or buy a 3ds in general.

killa32130
killa32130

Every console has its fair share of youth lol.

Mr_Bodywave
Mr_Bodywave

 @craigprime

 You're wrong.  Exchange was only PART of it.  Low sales of Wii and software were the other shoe.  Wii hardware was down over 60%.  These things require a certain volume to have profits.  Sure the Wii sells for a profit compared to its costs, but Nintendo has huge overhead that has to be covered.

CTBradums
CTBradums

 @dom28  @hitechgraphs "The difference between Nintendo and other companies is, they actually have the money to bounce back whenever they want."?

 

Microsoft and their immense amount of fiscal quarters ending in losses would like to have a word with you. Microsoft executives have gone on record saying that even if the video game aspect of the corporation posts losses, it's still a win, because it's taking profit from Sony and Nintendo and it's only a chunk of Microsoft's income. If anyone, it's Nintendo that has the least money to bounce back, because unlike Sony or Microsoft, Nintendo depends solely on the video game industry whereas Microsoft makes ungodly amounts of money via software and engineering and Sony rakes in cash through their various home electronics divisions.

RAHBRT
RAHBRT

  @hitechgraphs If this loss didn't phase Nintendo they wouldn't have slashed the 3ds prices. There a business to make money losing revenue constantly isn't good business. How is their marketing smart btw?

Jebril
Jebril

 @lambent212  @JasPlun How has it improved exactly? Every State and the Fed. Government are more in debt than before, unemployment is higher now than when he took office. The dollar is worth less than it used, everything has gone up in price. Are you just happy from the hand outs or something because those are just delaying the inevitable and making it that much worse. Don't get me wrong, Romney is no better they're both going to perpetuate this terrible economic disaster we live in of more spending, more borrowing/printing of money.

Mr_Bodywave
Mr_Bodywave

 @lambent212  @JasPlun I don't know.  I just don't know if I could stand the stock market to go up ANOTHER 80% like it did his first term.  That would be a disaster.

 

Mr_Bodywave
Mr_Bodywave

 @Martyr77  

 Except jobs are up, unemployment is down, stocks are up 80%, health care actually is much better with "obamacare" (that is actually the funniest--big pharma et al have spent millions to convince people it is bad, because it is bad for them, and you and others bought it hook, line, and sinker.), we are out of iraq, Osama is dead, The US is way way way better off than it was 4 years ago.  If you are rich, Romney will be good for you, if not, you are screwed. 

TacticaI
TacticaI

 @Martyr77  @Mr_Bodywave  @Jebril Barrack Obama, the President of the United States, doesn't understand the most basic of economic concepts, but you do well enough, to recognize that he doesn't? Okay, I'm done following this conversation. 

Martyr77
Martyr77

 @Mr_Bodywave  @Jebril  @TacticaI

 He hasn't fixed anything in FOUR YEARS period. Without a teleprompter to tell him what to say he can't debate topics let alone even understand the most basic of economic concepts. His ideas include a stimulus package that didn't work (cost us money) and Obamacare. That's about it.

 

Jebril-I agree. Either way we are in trouble.

Jebril
Jebril

 @TacticaI  @Martyr77 Even if the article is correct, it says the unemployment rate is the lowest it's been since 09' which is after he took office, my point was that unemployment has went up since he took the office, and I look at his whole term in office. I'm a skeptic of Obama and Romney, forgive me for not trusting the mainstream candidates lol.

TacticaI
TacticaI

 @Martyr77  I can't get the links in the comment, but you can search unemployment rate on CNN, MSNBC, Fox News, all reporting the same if you like reading so much. 

Mr_Bodywave
Mr_Bodywave

 @Jebril  @lambent212  @JasPlun

 It's a good place for me to look to see how my retirement has almost doubled in value.  Also my other investments (non-retirement).  Plus I am 100% you would say the stock market was most important if it was down but the dollar was strong.

Jebril
Jebril

 @Mr_Bodywave  @lambent212  @JasPlun I know this is hard to understand but the stock market isn't the only place to look at when you see how well the economy is doing, the value of the dollar is actually MUCH more important than the stock market. Also looking at average income in this country is very important, which not surprisingly is terrible. About half of America is currently Low Income or below.