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Nintendo explains fiscal year loss, details how Wii U, 3DS and digital will fix that
During the last fiscal year, we were confronted with the steep appreciation of the yen, significant price drop of the Nintendo 3DS in order to make the course correction and place it back on the originally expected sales track, and the failure to launch much-anticipated titles in a timely fashion in the first half of the term. Under these circumstances, we posted an operating loss for the full year, which was the worst result since we went into business in the video game industry. We feel greatly accountable for the result as executive officers.
Today, I would like to tell you about our prospects on how Nintendo will be able to enjoy a turnaround for this fiscal year.
Here are the sales forecasts of our major hardware and software on which our financial forecasts are based for this fiscal year.
The sales numbers of the hardware and software sales for the Wii include those for the Wii U to be launched in this year-end sales season. Also, please note that the numbers of sales of the software for the Nintendo 3DS and the Wii U include those to be downloaded through the digital distribution we plan to implement in this fiscal year, but exclude the Virtual Console software or download-only software.
As for the software sales as our revenue base, we expect an increase in the sales of the Nintendo 3DS from the last fiscal year. From this fiscal term, we will be in the harvest time for the software sales of the Nintendo 3DS. However, we have a more conservative sales forecast than that of the Nintendo DS for the third year, considering the fact that the momentum of the Nintendo 3DS overseas has not reached our anticipated level, unlike the domestic market.
On the other hand, we think that the software sales of the Nintendo DS and the Wii will rather significantly decrease due to the small number of games scheduled in this fiscal year. We don’t anticipate that the software sales of the Wii U can compensate for the decrease in those of the Wii because the Wii U will be launched as late as in the holiday season and then the total unit sales of the Wii U will be limited in this fiscal year. This is one of the reasons our business performance inevitably fluctuates when we change platforms.
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