The most iconic video game company in the world had expected to make a 50 billion yen (£316 million) operating profit for the financial year ending March 31. Overall revenue doesn’t take quite as hard a hit – original projections of ¥570bn (£3.61bn) fell only 12 percent to ¥500bn (£3.167) – but it’s still an undesirable dip for the House of Mario. The company’s operating profit forecast was also cut, dropping down one-third to 30 billion yen ($265.7 million).
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“Sales of the 3DS fell short of our targets from January”, Nintendo spokesman Yasuhiro Minagawa said.
Japanese exporters such as Nintendo have seen their profits calculated in yen soar in recent years as the unit has weakened precipitously against the USA dollar and other currencies.
“Given the sales trend… and the higher yen, we revised our earnings forecast”, Nintendo said.
How the company will perform in 2016 is the real test – with the launch of its first smartphone games, and the expected arrival of its new console NX. “After adding the impact of stronger yen, we had no choice but to revise”.
Wii U sales are on track with expectations, while Wii U software is actually selling better than expected.
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“Nintendo is promising that next fiscal year will mark a return to the level of profits it used to enjoy”, Iwai Cosmo’s Kawasaki said.
