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Nintendo Wii U sales flop; third consecutive annual loss for the company

Wii U sales flop leading to third consecutive annual loss for Nintendo
Wii U sales flop leading to third consecutive annual loss for Nintendo
Nintendo

Nintendo revealed on Friday that its Wii U sales have been far below estimates, pushing the company to a third consecutive annual loss, according to a report from Reuters.

Despite its $50 price cut last September, Nintendo has lowered its estimate of Wii U sales by March 31 by 70%, to 2.8 million units. In addition, the company cut its projection for 3DS sales from 18 million to 13.5 million units.

At a shareholder briefing on Friday, Nintendo president Satoru Iwata explained:

We failed to reach our target for hardware sales during the year-end, when revenues are the highest.

This comes at a time when Microsoft, with the Xbox, and Sony, with the Playstation, are dominating the home console market, while handheld gaming devices are going out of fashion in exchange for cheap mobile games.

With these drastic cuts in sales estimates, Nintendo also projects a net loss of 25 billion yen by March 31 of this year, whereas previously they have projected a 55 billion yen profit.

The Wii U was a novel remake of the original Wii, which Iwata was lauded for, with a screen mounted on the wireless controller that is supposed to allow the user to play games both on the TV and on the controller. However, from the start, the console had trouble selling.

Does Wii U's flop come as a surprise? Leave your thoughts in the comments section below.

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