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Nintendo Slashes Wii U and 3DS Forecasts
Nintendo has announced that it is lowering its sales forecasts for both the Wii U and the 3DS following a poor forth quarter, gamasutra reports.
The company expects to sell 4 million Wii Us by the end of March, down from 5.5 million, and 15 million 3DS systems, they had originally expected to sell 17.5 million units during the current fiscal year.
However, Nintendo have in fact raised their profit projections to $153.8 million from $75.2 million.
Despite the more than double increase in expected profits analysts have reacted poorly to the sales forecasts calling for a reduction in the Wii U’s price.
“The result is worse than expected,” Myojo Asset Management’s Makoto Kikuchi told Business Week. “The company needs to do something to get out from a money-losing structure.”
Macquarie Securities’ David Gibson, speaking to 4-Traders, commented: “The business is not firing on all cylinders. It had a bad Christmas. We thought it was going to be bad, but this is even worse.
Meanwhile Reuters quoted Bayview Asset Management’s Yasuo Sakuma who said: “We have been prepared to see weak sales forecast for Wii U as its sales performances in various regions have been widely reported. But it was negative to see a lower forecast for 3DS software as it is one of the company’s main sales drivers.”