Nintendo has revised its forecasts for the fiscal year to a net loss of $240 million (25 billion yen) due to weak sales of the Wii U during the holiday shopping season, according to a syndicated Bloomberg report. The company described its year-end sales of Wii U consoles and software as "far below expectations."
"It is now expected that our sales will fail to meet our previous forecast by a large margin," President Satoru Iwata said at a press conference Friday. "We can no longer expect our financial performance to recover in the current fiscal year."
The company cut its forecast for operating income to a 35 billion-yen loss from the prior 100 million-yen profit.
Nintendo also cut its forecast for sales of its 3DS handheld to 13.5 million units from 18 million, and for sales of 3DS games to 66 million units from 80 million.
According to Bloomberg's calculations, Nintendo has lost about 80 percent of its market value since the introduction of the original Wii drove its share price to a record high of 72,100 yen (November 2007). The company's stock has dipped even more this morning on this news.
We'll have more on this story as it develops.