Nintendo Lowers Profit and Sales Forecast for 2015; Wii and Wii U Software Selling Well

on March 15, 2016 2:08 PM

It seems Nintendo is expecting to fall short of their estimated benchmarks for the 2015 fiscal year, ending March 31, 2016. According to a recent document made available to investors, Nintendo is scaling back their predictions for the Nintendo 3DS while raising their benchmarks for both Wii and Wii U.

First and foremost, Nintendo 3DS was originally estimated to sell 7,600,000 units with 56,000,000 software sales. As of today, Nintendo now expects by March 31 to have sold 6,600,000 3DS units and 47,000,000 software — a 13% and 16% decrease respectively.

Speaking of decreased predictions, Nintendo also lowered, their estimated net sales, operating income, and ordinary income to the following:

Screenshot 2016-03-15 14.02.44

As you can see, they are expecting (in some instances) to receive 34% to 54.5% decreases in operating and ordinary income. Meanwhile, net sales are less affected, but do see a 12.3% drop off. According to Nintendo, this is partially (if not mostly) due to the yen-to-dollar/euro exchange rate, manifesting in a 20.0 billion yen loss in foreign exchange:

Based on the sales performance for the nine months ended December 31, 2015 and after the beginning of the new calendar year, as well as considering recent trends of yen appreciation in foreign currency exchanges, we have modified our financial forecast.

As for applied exchange rates for the full fiscal year, actual exchange rates are applied to all currencies up to January 2016. Assumed exchange rates in and after February 2016 and at the end of the fiscal year have been revised from 120 yen to 115 yen per U.S. dollar and there is no change from 125 yen per euro. As a result, we expect approximately 20.0 billion yen in foreign exchange losses to be reflected in non-operating expenses.

Lastly, not everything is doom and gloom — the Wii and Wii U are meeting their yearly goals and the benchmark for software sales has been increased. The Wii was originally expected to sell 4,000,000 in software, where the Wii U was expected to sell 23,000,000. Now, Nintendo intends to sell 7,000,000 Wii games and 27,000,000 Wii U games — a 75% and 17% increase respectively.

 /  Editor-in-Chief
Lou Contaldi is the Editor-in-Chief at DualShockers, specializing in both reviews and the business behind gaming. He began writing about tech and video games while getting his Juris Doctor at Hofstra University School of Law. He is maybe the only gaming journo based in Nashville, TN.