Nintendo cuts forecasts as 3DS sales fall short
The company expects to make $620 million less next year.
Nintendo may want to send its crystal ball back for a refurb, because it has once again failed at forecasting. It just announced a downgrade to its 2016 estimates because the new 3DS and 3DS XL portable consoles haven't been selling as well as hoped. The company thought it would move 7.6 million units across the world between April 2015 and March 2016, but it's now revised that figure to 6.6 million. It also lowered its 3DS software sales estimate by 9 million units. With Wii U sales estimates unchanged, that means the company expects 2016 revenue to fall 70 billion yen, or approximately $620 million.
The company has now missed its forecasts on the low side for the last four years. To be fair, that's often down to its home yen currency being too strong, making its products more expensive in North America and elsewhere. But it also means that the company is seeing its market size, and the products themselves, through Mario-tinted lenses. With the revised forecast, the company estimates net profits next year to be 17 billion yen, or $150 million. However, Nintendo does have a few things up its sleeve, including a new mobile game platform, Pokémon 3DS bundle, remastered Pokémon movies, and reportedly, new Pokémon Sun and Moon games. Oh, and at some point, a brand new console.
