Feeds

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

Clearly they need a red boiler suit and some mushrooms

Next gen security for virtualised datacentres

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
End of buttons? Apple looks to patent animating iPhone sidewalls
Filing suggests handset with display strips
Samsung Gear S: Quick, LAUNCH IT – before Apple straps on iWatch
Full specs for wrist-mounted device here ... but who'll buy it?
Apple promises to lift Curse of the Drained iPhone 5 Battery
Have you tried turning it off and...? Never mind, here's a replacement
Now that's FIRE WIRE: HP recalls 6 MILLION burn-risk laptop cables
Right in the middle of Burning Mains Man week
Apple's iWatch? They cannae do it ... they don't have the POWER
Analyst predicts fanbois will have to wait until next year
Reg man looks through a Glass, darkly: Google's toy ploy or killer tech specs?
Tip: Put the shades on and you'll look less of a spanner
HUGE iPAD? Maybe. HUGE ADVERTS? That's for SURE
Noo! Hand not big enough! Don't look at meee!
AMD unveils 'single purpose' graphics card for PC gamers and NO ONE else
Chip maker claims the Radeon R9 285 is 'best in its class'
prev story

Whitepapers

Gartner critical capabilities for enterprise endpoint backup
Learn why inSync received the highest overall rating from Druva and is the top choice for the mobile workforce.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.