Nintendo sinks to loss on lagging Wii U sales, promises return to profit
May 8, 2014, 12:02 am TWN
TOKYO--Nintendo Co. sank to a loss as the fiscal year ended March as sales of its Wii U game machine continued to lag, but the Japanese manufacturer of Pokemon and Super Mario games promised Wednesday to return to profit this year.
Kyoto-based Nintendo reported a 23.2 billion yen (US$229 million) loss, a reversal from a 7 billion yen profit it eked out the previous year. Annual sales fell 10 percent to 571.7 billion yen (US$5.6 billion). It did not break down quarterly numbers.
Wii U sales have fallen short of company forecasts. In January, Nintendo lowered its Wii U sales projection for the fiscal year through March from 9 million to less than a third of that at 2.8 million units.
Nintendo's actual results were even worse than the lowered projection at 2.72 million.
The company remained upbeat and said it expects to sell 3.6 million Wii U machines for the fiscal year through March 2015, helped by the planned release of popular games for the machine, such as "Mario Kart 8" and "Super Smash Bros."