On Monday Nintendo reported losses of 18%, with shares of the Japanese firm expected to 
plummet as the company attempts to compete with rivals Sony and Microsoft.
Nintendo, previously forecasting profits of approximately 100bn yen, has now predicted an operating loss of 35bn yen for the financial year ending in March. They have also lowered their Wii U sales forecast for the business year by nearly 70%, with unit sales predicted to fall from 9 million to just 2.8 million.
Nintendo accounted the disappointing figures to the weak sales during the Christmas period, with the firm reducing its sales figures for the 3DS console from 18 million to 13.5 million units.
The supermarket giant Asda in July last year claimed they would no longer be selling the Wii U in its stores due to repeatedly disappointing sales.
The Gloomy Future of Consoles
Mobile gaming has equally been blamed for the firm’s inability to keep to their optimistic profit forecast. Nintendo games are not yet available on mobile or tablet, which experts have claimed is holding them back.
Competitors such as Sony and Microsoft will be launching console-less games within the year and overall Nintendo have struggled to keep up with this advancing technology. Sony even announced plans earlier this year that their games would be available on a range of devices, including mobile, tablet and smart TVs.
Industry analysts from Jefferies have concluded that with these aspects in mind, Nintendo need to readdress their strategy and do more to keep up with the constantly evolving industry. “Its console-based business spells doom for stakeholders. It has no choice but to accept the change.”
