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Nintendo to incur net loss of 25 bil. yen in FY 2013 on weak sales

January 16, 2014

OSAKA, Jan. 17 -- (Kyodo) _ Nintendo Co. said Friday it expects to incur a net loss of 25 billion yen for this business year through March, a reversal of its previous outlook of a profit of 55 billion yen, on weaker-than-expected console and software sales at the year-end shopping season.

The Japanese gaming giant said it expects to book a group operating loss of 35 billion yen, compared with the earlier-projected profit of 100 billion yen, as it slashed sales estimates for its Wii U home video game console and Nintendo 3DS portable console.

In the business year ended last March, the company posted a group net profit of 7.10 billion yen and an operating loss of 36.41 billion yen on consolidated sales of 635.42 billion yen.

Nintendo slashed its consolidated sales estimate to 590 billion yen against 920 billion yen forecast in April.

The company also cut its dividend payment projection to 100 yen per share from 260 yen projected earlier.

As for hardware, Nintendo axed its annual sales estimate for the Wii U to 2.8 million units from 9 million units, and cut its outlook for the Nintendo 3DS to 13.5 million units from 18 million units.

"In the year-end sales season which constitutes the highest proportion of the annual sales volume, software sales with a relatively high margin were significantly lower than our original forecasts mainly due to the fact that hardware sales did not reach their expected level," the company said.

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Source: Japan Economic Newswire

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