Nintendo Revises Financial Forecast
Last year was the roughest that Nintendo has seen for decades, posting its first loss in roughly 30 years, going into the red by about ¥17.2 billion/$220.4 million. While this year they predict to be back in the black, the company has announced a revised prediction of revenue with the release of their half-year fiscal statement: instead of pulling in ¥20 billion/$251 million in profits, they now expect closer to ¥6 billion/$75.2 million.
According to a post on GamesIndustry, the revised prediction is due in large part to two factors: the poorer-than-expected sales of the 3DS system overseas, and the strong yen-to-dollar ratio (meaning that all the dollars they earn in America don’t go nearly as far in Japan as they expected).
Even still, the fact is they still expect to be profitable this year, which is a great improvement, and the Wii U is still expected to bring in plenty of cash when it launches next month. Until we see how well that console does at retail—after pre-orders are fulfilled and people can begin buying them off the shelves—we won’t really know how Nintendo will do this year. I have a feeling they’ll probably stay profitable, and may even wind up exceeding that ¥6 billion profit prediction. But then again, what do I know? Stay tuned…