Nintendo Modifies Financial Forecast

Today Nintendo issued a revised financial and dividend forecast for the year ending March 31, 2016. It is now expected to earn 12.3% less in Net Sales, 34% less in Operating Income, 54.5% less in Ordinary Income and 51.4% less in profit attributed to parent. This is partly due to exchange rate fluctuation, with about 20 billion yen in foreign exchange losses expected. Nintendo officially states:

Based on the sales performance for the nine months ended December 31, 2015 and after the beginning of the new calendar year, as well as considering recent trends of yen appreciation in foreign currency exchanges, we have modified our financial forecast.

As for applied exchange rates for the full fiscal year, actual exchange rates are applied to all currencies up to January 2016. Assumed exchange rates in and after February 2016 and at the end of the fiscal year have been revised from 120 yen to 115 yen per U.S. dollar and there is no change from 125 yen per euro. As a result, we expect approximately 20.0 billion yen in foreign exchange losses to be reflected in non-operating expenses.

Nintendo 3DS especially took a hit in projections, with Nintendo expecting to sell 1 million less than anticipated. Software sales for the 3DS are expected to sell 9 million less than originally forecast. By comparison, Wii U hardware sales are expected to fall in line with original projections and software will most likely be slightly up as well with 4 million more sold than forecast (thanks Splatooon!).

[Source: Nintendo]

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