Nintendo revises profit forecast, now set to lose £145mn

More bad news has come from Nintendo, as the gaming giant reversed a previously healthy forecast for its next financials, and announced that it will in fact make a loss in the year running up to the end of March.

The sad truth is that the Wii U just isn't selling, and while Christmas sales of the console were expected to provide a boost to figures, those units just weren't shifted as Nintendo predicted they would be. Nintendo now thinks it will have sold 2.8 million units of the Wii U globally, where before it had expected to shift around 9 million.

That's a chasm of a disparity, and doubtless Nintendo has not been helped by strong sales of both the PS4 and Xbox One, particularly the former – with the Wii U seemingly side-lined by many, despite some price cutting. More importantly, though, Nintendo shifted less of its high-margin software due to these lesser hardware sales, and that's what really dented profits.

Previously, Nintendo had forecast a profit of 55 billion yen (£320 million), whereas it has now reversed that forecast to a loss of 25 billion yen (£145 million). Revenue is expected to drop by just over a third.

According to the New Straits Times, Nintendo President Satoru Iwata commented at a press briefing: "During the year-end shopping season, we weren't able to lift sales momentum for the Wii U."

He added that when it comes to profit, "the decrease in game software sales is having the biggest impact."

Further disappointing news for Nintendo fans comes from Eurogamer, which recently spoke to the company and discovered that it won't be showing off any new hardware at E3 next month. Rumours which surfaced last week suggested that Nintendo was going to unveil something big at the show.