Feeds

Ninten-DOH! Japanese giant slashes Wii U sales forecasts by 70%

Clearly they need a red boiler suit and some mushrooms

Remote control for virtualized desktops

It was once the king of consoles, but the formerly mighty Nintendo has been forced to admit that sales of its flagship Wii U are likely to flop.

The Japanese firm has issued a grim profit warning in which it slashed its global Wii U sales forecast for 2014 by almost 70 per cent.

Nintendo now expects to shift just 2.8 million units, compared to the 9 million it once predicted. It also pruned the predicted sales figures of its portable 3DS from 1.8 million to 1.35 million units.

The video games giant is also preparing to make a loss of 35bn yen (£205m), down from the 100bn yen it once expected to net in profits. This will be the third consecutive year in which it has made a loss.

In the report, Nintendo said: "In the year-end sales season which constitutes the highest proportion of the annual sales volume, software sales with a relatively high margin were significantly lower than our original forecasts mainly due to the fact that hardware sales did not reach their expected level.

"As a result, the total of selling, general and administrative expenses will surpass gross profit, which leads to an operating loss... we can no longer expect our financial performance to recover in the current fiscal year."

Last week, shares in Nintendo soared by 10 per cent in Tokyo to a two-and-a-half year high after China announced an end to a ban on sales of foreign game consoles.

This is likely to be reversed when the Tokyo stockmarkets open on Monday.

"The fact that the Wii U strategy has failed is disappointing and will likely trigger a sell-off as soon as the market opens," said Makoto Kikuchi, chief executive of Myojo Asset Management. ®

Internet Security Threat Report 2014

More from The Register

next story
Nexus 7 fandroids tell of salty taste after sucking on Google's Lollipop
Web giant looking into why version 5.0 of Android is crippling older slabs
Heyyy! NICE e-bracelet you've got there ... SHAME if someone were to SUBPOENA it
Court pops open cans of worms and whup-ass in Fitbit case
SLURP! Flick your TONGUE around our LOLLIPOP – Google
Android 5 is coming – IF you're lucky enough to have the right gadget
Official: European members prefer to fondle Apple iPads
Only 7 of 50 parliamentarians plump for Samsung Galaxy S
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Space Commanders rebel as Elite:Dangerous kills offline mode
Frontier cops an epic kicking in its own forums ahead of December revival
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Reducing the cost and complexity of web vulnerability management
How using vulnerability assessments to identify exploitable weaknesses and take corrective action can reduce the risk of hackers finding your site and attacking it.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.