The Japan-based game console giant Nintendo is slashing its predicted profit for the year by 70 percent, from 250 million US$ to 75 million US$, as reported by the company on Wednesday.
The slashing is a result of the strengthening of the Japanese Yen and lesser popularity of its consoles.
The slash in expected profit was greater than the estimate of a Bloomberg survey among 21 analysts, wherein the estimate in expected profit for Nintendo was 132 million US $.
The company is already preparing itself for slower selling paces, adjusting its 3DS sales projection downwards by 1 million, from 18.5 million units. Also, limp demand for the 3DS caused Nintendo to lessen the gadget rate by 33% last year, states Reuters.
Despite the slower sales, Nintendo would be releasing the Wii U, slated to be out in the markets on November 18, and would be its first hardware release in 6 years. Some of the prized features of the new Wii include a social networking function and a touchscreen controller.
In the same statement, Nintendo predicts that 5.5 million units would be sold by March 2013. The company has been eclipsed by its competitors, Sony’s Playstation and The Xbox 360 of Microsoft, and is putting its bet on the new Wii to have better sales after having its first operating loss in 30 years in 2011.
The console giant also states that it would concentrate on marketing its 3DS device during the 2nd half of the fiscal year, and would broaden its business through the introduction of the Wii U for the holiday season.
On a positive note, Nintendo also states that its total loss for the first half, until September was cut to $350 million dollars from $881 million one year ago.