Nintendo to post operating loss of €164m as Wii U sales slump
GAMING giant Nintendo said it expects to post an operating loss this year as sales of its newest console flag.
The Japanese company, which is famed for bringing global brands such as Super Mario and Donkey Kong to computer games, said it will post an operating loss of about €164m in its current year, which ends on March 31. The forecast contrasts sharply with previous guidance from the company which had been expected to make a profit of about €100m.
News of the reduction came as the firm said sales for its latest console, the Wii U came in lower than had been expected. The successor of the highly profitable Wii, the new model has struggled to build on its predecessor's success. Nintendo lowered its sales forecast for the Wii U to 4 million consoles by the end of March from a pre-launch estimate of 5.5 million, and cut the sales outlook for its handheld 3DS by 2.5 million machines to 15 million.
"The sales of Wii U were smooth at the beginning but since the turn of the year they have been losing momentum," said Nintendo President Satoru Iwata in Osaka after revealing the loss forecast. He blamed the lacklustre performance on a dearth of games titles to woo players back. (Additional reporting by Reuters)