Nintendo has revised their financial forecast for the current fiscal year, reducing their profit expectation by more than half.
That sees the company anticipate making a 17 billion yen profit (£107.5 million), rather than the 35 billion yen (£221.3 million) that they had estimated before.
That was attributed to an underperformance in Nintendo 3DS hardware and software sales, that an increase in Wii U and Wii software sales were unable to counterbalance.
Nintendo also indicated that lacklustre foreign currency exchange rates were also factored in to the revision, expecting that alone to account for 20 billion yen (£126.4 million) losses.
“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,” Nintendo shared in their notice to investors.
“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.”