- revised its forecast for the fiscal year to a net loss of 25 billion yen ($240 million)
- cut forecasts for Wii U sales to 2.8 million units from 9 million

“We can no longer expect our financial performance to recover in the current fiscal year.” - Nintendo

- cut forecast for sales of 3DS to 13.5 million units from 18 million
- sales of 3DS software cut from 80 to 66 million units
- Wii U software sales cut from 38 to 19 million
- market capitalization is about $20 billion


In the year-end sales season which constitutes the highest proportion of the annual sales volume, software sales with a relatively high margin were significantly lower than our original forecasts mainly due to the fact that hardware sales did not reach their expected level. As a result, the total of selling, general and administrative
expenses will surpass gross profit, which leads to an operating loss.

The reason why we will post ordinary income despite the operating loss situation is that we now assume that the yen will be weaker than our original assumptions at the beginning of the fiscal year, which results in foreign exchange gains.

On the other hand, we expect to post a net loss because we need to reverse deferred tax assets in relation to the losses carried over from the previous fiscal years mainly in the United States, as we can no longer expect our financial performance to recover in the current fiscal year.

Exchange rate assumptions for the fourth financial quarter as well as for the end of the full fiscal year have been revised from 90 yen to 100 yen per U.S. dollar, and from 120 yen to 140 yen per euro in consideration of the recent exchange rate situation.

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