There’s no hiding from the fact that the Wii U has not been doing well at all. During the first half of Fiscal Year 2014 less than 500,000 Wii Us were sold to consumers with Q1 only seeing 160,000 sales. Despite these awful numbers Nintendo still believed that they could still sell 9 million units for the Fiscal Year, something that everyone knew was impossible.
Today during a press conference with investors, Nintendo officially slashed sales projections from 9 million down to a paltry 2.8 million. “Sales in the U.S. and European markets in which we entered the year-end sales season with a hardware markdown were significantly lower than our original forecasts, with both hardware and software sales experiencing a huge gap from their targets,” Nintendo CEO Satoru Iwata wrote in his report.
Probably the most surprising admission in this report is that the 3DS failed to meet expectations. While it did extremely well in Japan, sales could not be met in North America or Europe. “Outside Japan, while its market share increased as we continued to release compelling titles throughout the year, Nintendo 3DS did not reach our sales targets in the overseas markets, and we were ultimately unable to achieve our goal of providing a massive sales boost to Nintendo 3DS in the year-end sales season. 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 our 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 we experienced relatively strong sales, and we failed to attain our initial sales levels by a large margin in other countries.”
Nintendo has completely revised their net income projection to show a loss of 25 billion yen. They previously expected a profit of 55 billion yen.