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Nintendo hit by low sales outside Japan

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Staff writer ▼ | January 17, 2014
Nintendo revised its full-year consolidated financial forecasts for the fiscal year ending March 31, 2014, by estimating new net sales of 590 billion yen against the initially projected net sales of 920 billion yen.
Nintendo
NintendoNintendo revised its full-year consolidated financial forecasts for the fiscal year ending March 31, 2014, by estimating new net sales of 590 billion yen against the initially projected net sales of 920 billion yen.


The company expects a new operating loss of 35 billion yen against the initially projected operating profit of 100 billion yen, new ordinary income of five billion yen against the initially projected ordinary income of 90 billion yen, and new net loss of 25 billion yen against the initially projected net income of 55 billion yen

Foreign currency assumptions for the end of the fiscal year have been revised from 90 yen to 100 yen per U.S. dollar and from 120 yen to 140 yen per euro.

Revised consolidated unit sales projections are 13.5 million units of the Nintendo 3DS hardware and 66 million units of the Nintendo 3DS software, 1.2 million units of the Wii hardware and 26 million units of the Wii software, and 2.8 million units of the Wii U hardware and 19 million units of the Wii U software. There are no modifications to initial projections for the Nintendo DS hardware and software.

As for the estimated annual dividend, if the actual consolidated financial results are in line with company's modified financial forecasts, there will be no annual dividend per share. However, on the basis of our dividends paid in the last two years, the company set a minimum of 100 yen for the year-end and annual dividend per share for this fiscal year.

Nintendo 3DS continued to show strong sales in the Japanese market. The unit sales for Nintendo 3DS in the previous calendar year amounted to approximately 4.9 million units. However, outside Japan, while its market share increased, Nintendo 3DS did not reach company's sales targets in the overseas markets.

Using the U.S. market as an example, Nintendo 3DS became the top-selling platform in the last calendar year, according to NPD, an independent market research company, with its cumulative sales exceeding 11.5 million units; however, the estimated annual sales of the Nintendo 3DS hardware remain significantly lower than company's initial forecast at the beginning of the fiscal year.

In Europe, while the individual markets showed different results, France was the only market in which the company experienced relatively strong sales, and it failed to attain our initial sales levels by a large margin in other countries.

Wii U sales showed some progress in the year-end sales season, however, they fell short of company's targeted recovery by a large margin. In particular, sales in the U.S. and European markets were significantly lower than company's original forecasts, with both hardware and software sales experiencing a huge gap from their targets.


 

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