Nintendo recently told investors that it expects to earn less than originally expected for the current fiscal year, which ends on March 31, 2016.
Previously the company expected sales to be at $5.05 billion, that number has now been cut to $4.43 billion — a 12.3 percent decrease in revenue.
The big reason for the earnings forecast downgrade? Slow handheld hardware sales. Nintendo has cut 1 million 3DS consoles from its forecast, it is now expecting that sales of the handheld will be 6.6 million, instead of 7.6 million they originally thought they would sell.
However, there is some good news: the company still expects to sell 3.6 million Wii U consoles this fiscal year. And 100,000 Wii consoles.
Furthermore, the company now expects increased Wii U software sales: they now expect to sell 27 million Wii U games this year, compared to previous estimates of 23 million.
Overall though, software sales are expected to be lower: Nintendo now expects to sell 56 million software units instead of 62 million.
What to make of all this? We’ll have to wait and see what the financial results are like, but we’ve seen Nintendo downgrade sales and still manage to turn a profit in the past.