Nintendo downgrades its earnings and shipment forecasts for its current fiscal year as the console giant today confirmed it was hit with an overall loss during the nine month period ending December 31st 2011. President Satoru Iwata meanwhile confirms the upcoming Wii U console should be ready for launch in time for the holiday shopping season later this year.
For the first nine months of its current fiscal year, Nintendo posted a loss of ¥48.4 billion ($623 million USD), a far cry from the the ¥49.6 billion ($639 million USD) profit it reported for the same period last year. Revenues also dropped 31 percent year-on-year to ¥556.2 billion ($7.2 billion USD).
While the company was already bracing for its first full-year loss in nearly thirty years, in light of the nine-month update Nintendo now predicts its annual loss will be closer to ¥65 billion ($838 million USD). That's nearly triple the ¥20 billion ($258 million USD) annual loss it forecast earlier this year.
While sales for the 3DS soared during this past holiday shopping season, Nintendo has reduced its annual sales forecast for the handheld down to 14 million units. Lifetime-to-date sales for the 3DS so far have hit just over 15 million units.
This past holiday shopping season helped the 3DS tremondously, but the Wii meanwhile tumbled as sales during the nine month reporting period dropped 35 percent year-on-year to 8.96 million units. As of December 2011, a little under 95 million Wii consoles have been sold worldwide since it first launched back in 2006.
Despite the gloom, Iwata remains confident Nintendo will return to profitability during its next fiscal year, perhaps an early show of confidence in Wii U's sales performance as well as the company's expansion of its "digital business for the 3DS."