September 30th is the end of the second quarter in the business world, and already analysts are predicting a loss in revenue for Nintendo again. The companies current guidance is expected to be well below expected revenue,according to analyst Wedbush Morgan.
Nintendo is projecting to earn 175B yen( $2.3 Billion) for the second quarter, but most analysts are projecting an earnings of 146B yen, ($1.91 Billion). Conversely, Wedbush Morgan is going even lower, 140B yen ($1.8 Billion), citing NPD data that shows a 4% decrease in hardware sales, and a whopping 29% decline in new software. Wedbush Morgan also cited the uncertainty of Nintendo’s new console, the Wii-U, as a contributing factor. Analyst Michael Pachter summed it up nicely regarding the Wii-U, “A large market opportunity may exist for the Wii U, but visibility remains limited on pricing and interest. It is unlikely that the Wii U is significantly more powerful than its HD peers, in which case pricing will be the likely driver of sales.”
The true results will be announced this coming Thursday, but even then it is likely that Nintendo will report lower than expected results. Ever since their reduction of expected profits for the year, Nintendo has been criticized primarily for their handling of the 3DS and the Wii-U by both consumers and analysts. But Nintendo is far from being down and out; a lot of software upcoming for the company, including Skyward Sword, Mario Kart 7, and Super Mario 3D Land, are looking to be killer hits this holiday season. While it is unknown if the software will carry the company through the holidays, at the very least it will keep Nintendo afloat for the time being.
|PROS:||Great shooting mechanics, Paintball is fun, Diverse gun selection|
|CONS:||Soundtrack is terrible, game has no story mode|
|WTF:||WTF Text Here|