Nintendo Modifies Fiscal Year 2016 Forecast With More Losses

Due to the a stronger Yen dropping USD value, among other things, Nintendo is expecting a much deeper cut into profits this fiscal year.

As Nintendo prepares for the future with research & development of future gaming devices, it is a strong Yen value that has led to weaker international buying power. Because of this (in addition to lackluster sales projections), Nintendo has made modifications to their full-year fiscal 2016 forecast. Made available to stockholders and the public alike, changes to the forecast mean deep cuts to projected operating income, net sales, ordinary income and net income per share.

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Net sales are expected to fall by 70 billion Yen, while operating income is expected to decrease by almost 33%, down to 33 billion Yen. Most stark in Nintendo’s projected forecasts is the Net income per share, which was once projected last May to end at 291.35 Yen per share. That number has now decreased to 141.52 Yen.

Additionally, due to its circumstances, Nintendo expects to ship 1 million fewer Nintendo 3DS devices and almost 10 million fewer software units in the fiscal year ending on March 31, 2016. Wii U hardware, however, expects to remain the same, and Wii U software shipments this year received an additional estimated 4 million sales over the entire year.

The Nintendo 3DS, in all its iterations, is expected to perform markedly worse on a hardware and software standpoint than the release-barren tundra that was the console’s 2015 sales. Meanwhile, both hardware and software of the Wii U are expecting varying degrees of growth year-over-year from 2015. Many people expect the “Nintendo NX” to release this year. Considering the slumping success of Nintendo’s latest handheld, who knows if we can expect a retail handheld console release announcement later this year from the Japanese gaming giant.

Whatever they’ve got planned, it needs to act fast. Projecting cuts this deep is never fun for any party involved, especially for Nintendo executives.