Earlier this month, Nintendo revealed its results for the Nine-Month Period Ended December 2015 (April 1st, 2015 / December 31st, 2015). Even though the company was still in the black, pretty much everything was down due to sales being lowered than expected. This led many to wonder if Nintendo was going to modify its forecast for the current fiscal year (ending on March 31st).
And today, Nintendo did announce such a modification, and gave a new forecast:
- Net Sales: 500 000 million Yen (instead of 570 000 Yen, -12.3%)
- Operating income: 33 000 million Yen (instead of 50 000 Yen, -34%)
- Ordinary income: 25 000 million Yen (instead of 55 000 million Yen, -54.5%)
- Profit attributable to owners of parent: 17 000 million Yen (instead of 35 000 million Yen, -51.4%)
Here’s the new forecast for Hardware and Software:
- Nintendo 3DS (Hardware): 6.6 millions (instead of 7.6 millions)
- Nintendo 3DS (Software): 47 millions (instead of 56 millions)
- Wii U (Hardware): 3.4 millions (unchanged)
- Wii U (Sotware): 27 millions (instead of 23 millions)
- Wii (Hardware): 100 000 (unchanged)
- Wii (Software): 7 million (instead of 4 millions)
This modification is due to two main reasons: lower sales than expected during the Nine-Month Period Ended December 2015 (April 1st, 2015 / December 31st, 2015) and the first few weeks of 2016, recent trends of yen appreciation in foreign currency exchanges:
Assumed exchange rates in and after February 2016 and at the end of the fiscal year have been revised from 120 yen to 115 yen per U.S. dollar and there is no change from 125 yen per euro. As a result, we expect approximately 20.0 billion yen in foreign exchange losses to be reflected in non-operating expenses.