[Scarlett.]

Nintendo, the Japanese gaming giant and creator of the Super Mario franchise, has issued a profit warning blaming weaker-than-expected Wii U console sales.

It now expects to make an operating loss of 35bn yen ($335m; £205m) for the financial year ending 31 March 2014.

Its initial estimate was for an operating profit of 100bn yen.

Nintendo said the key reason behind the downgrade was weaker-than-expected sales during the holiday season.

"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," the firm said in a statement.
Losing faith

It said weak software sales were "mainly due to the fact that hardware sales did not reach their expected level".

The company cut its global Wii U sales forecast for the business year from nine million to 2.8 million units - a cut of nearly 70%.

It also reduced the sales forecast for its 3DS console from 18 million to 13.5 million units.

Three months ago Nintendo was standing by its sales projections for the Wii U, despite signs, from the UK at least, that retailers were losing faith in the product.

In July last year, UK supermarket chain Asda said it would no longer be selling the Wii U in its stores.
Online streaming

Nintendo has faced tough competition from rival games console makers, such as Microsoft with its new Xbox One, and Sony with its new PlayStation 4.

There is also a general trend towards online streaming of games to make them available over a variety of devices, such as mobiles and smart TVs.

At the recent Consumer Electronics Show in Las Vegas, Sony announced that PlayStation Now subscribers will be able to play some of the platform's greatest hits without the need to own a console.

Sony said it may offer its games to third-party products as well.
'Disappointing'

This month Nintendo's shares received a boost after China lifted a sales ban on foreign video games consoles.

The Chinese government said it would allow foreign firms to make consoles in the recently-launched Shanghai free trade zone and sell them across the country.

Nintendo's shares have risen 56% over the last 52-week period, reaching a two-and-a-half year high in January, but this latest profits warning - issued after the Tokyo markets closed - is likely to affect the share price on Monday.

"The fact that the Wii U strategy has failed is disappointing and will likely trigger a sell-off as soon as the market opens," said Makoto Kikuchi, chief executive of Myojo Asset Management.

BBC News

Perhaps Nintendo will finally wake up now, they have a good console with the Wii U, but honestly, they should have put more under the hood, they're now stuck with a next gen console that is only slightly more powerful than the X360 and PS3. This means no special 3rd party games. So they have to rely on Mario and Zelda for all their sales.

[Pete.]

what did they expect -- the Wii is fine

[Kyle]

I bought this console about two weeks ago with Super Mario and Luigi bro's U and nintendo land and I love it. The games are great for local play and we've had a right laugh.

I'm looking forward to Mario kart 8 and the new Smash bros but they definitely need to whack out some more of their stalwarts like Metroid. Having said that I have just got Zelda wind waker and I plan on getting Pikmin 3, Rayman Legends, Suer Mario 3D world, lego city undercover, lego marvel heroes, monster Hunter 3 ultimate and a few others so i will get my money's worth out of it either way.

[Z]

I like Nintendo products but this entire marketing campaign has been shoddy

[Munchkins]

Still obsessed with my 3DS
20 amaazing games & counting i own

[Kyle]

Originally Posted by Munchkins

Still obsessed with my 3DS
20 amaazing games & counting i own

Spot on! The 3DS started off slow but look at it now. I can't get enough of playing Mario kart and fire emblem.

[Scarlett.]

Nintendo seriously seem to have no idea what they're doing these days. I mean consider that Nintendo has no centralised account, in 2014, if you buy a game, it is only available for that ONE console, if it breaks, then thats it, wasted money.

Nintendo's naming schemes are so.....ugh. I mean the DS and the 3DS are two totally different consoles, how are people meant to know this? Same with Wii and Wii U, NES and SNES and Game Boy Colour and Game Boy Advance.

[Tom4784]

I can see Nintendo eventually dropping consoles and sticking to handhelds if it carries on like this. I also think that Nintendo might try to bring out another Next Gen console fairly soon, the Wii U is dead in the water because they tried to chase the casual audience which weren't reliable in the long run for the Wii and barely bought the Wii U.

Nintendo need to accept that they need better online functionality and technology comparable to it's competition. They should drop the Wii Brand with their next console since it's a damaged name that no one will take seriously and aim to bring out a more traditional console that's aimed at gamers, Casual audiences should never be the main focus because they are generally fickle and fleeting. Gamers are a reliable demographic and Nintendo can pull it back with their next console if they aim it at them.

[Z]

I kinda disagree with you Dean because aiming themselves at the casual market (families with young kids, for example) is precisely why they've been so successful for such a long time - they make games for people who aren't gamers; you don't need to be a gamer to pick up a Nintendo product and have fun with it - whereas Xbox and Playstation both provide games for gamers. However, they definitely need to modernise their approach. They need to really launch online gaming properly and they need to bring out more games for their new console. They should drop the Wii name though, I agree, that ship has now sailed.

[Munchkins]

Originally Posted by Simple Minds

Spot on! The 3DS started off slow but look at it now. I can't get enough of playing Mario kart and fire emblem.

Mario Kart, New Leaf, Luigis Mansion, Pokemon, The 2 Zelda Games <33
Mario 3D Land too, but ive 100% completed it so not much left to do
And thats only off the top of my head, ive got many more which have provided hours of entertainment

[Munchkins]

Not to mention Kirby, Smash Bros & Yoshi releases this year
whilst the Wii U just isnt cutting it

[Tom4784]

Originally Posted by Zee

I kinda disagree with you Dean because aiming themselves at the casual market (families with young kids, for example) is precisely why they've been so successful for such a long time - they make games for people who aren't gamers; you don't need to be a gamer to pick up a Nintendo product and have fun with it - whereas Xbox and Playstation both provide games for gamers. However, they definitely need to modernise their approach. They need to really launch online gaming properly and they need to bring out more games for their new console. They should drop the Wii name though, I agree, that ship has now sailed.

It's okay to try and make a grab at the casual market, Sony and Micrsoft have added a lot of casual friendly stuff to their consoles but it's not smart to focus entirely on them. The Wii had one of the most successful launches ever because Casual audiences went mad for it but those casual players never bought any games outside of First party Nintendo games which scared off third party developers and left the Wii with a real shortage of quality games which meant that actual gamers didn't bother with it.

For a console to be successful it needs more than high sales of the console itself, it needs a high and steady number of games and content sales in order to attract the third party developers to develop the games that keep the gamers interested. Nintendo is lucky that they develop their own games which always sell well but they can only put out three or four blockbusters a year at most which isn't enough considering that the Playstation and the Xbox may have around 20 or so blockbusters a year. Third Party developers are vitally important to a console's success and they really need to lure both the gamers and developers back with their next major console.

As long as the handhelds continue to dominate, Nintendo will stay affloat but they really need to get their **** together when it comes to their consoles if they want to be a contender.

[Ninastar]

bring back the n64

[BBfanUSA]

Yeah watch them lower the price like they did with the 3DS. I think a good reason why it hasn't been selling well is because they're relying on the casual market too much so there isn't much for Hardcore gamers. (I see myself as a hardcore gamer)

Personally I'm waiting for the price to go down and then I'll buy it with Wind Waker, Smash Bros., Mario Kart.

I would not mind another Galaxy as well.

[Black Dagger]

Shame really, I love Nintendo, 64 was my fave console ever.

If I had the money I'd probably buy one and a 3DS.

[Kyle]

Originally Posted by BBfanUSA

Yeah watch them lower the price like they did with the 3DS. I think a good reason why it hasn't been selling well is because they're relying on the casual market too much so there isn't much for Hardcore gamers. (I see myself as a hardcore gamer)

Personally I'm waiting for the price to go down and then I'll buy it with Wind Waker, Smash Bros., Mario Kart.

I would not mind another Galaxy as well.

I picked the premium one up off amazon for about 230 quid with Super Mario bros U and the Luigi bros expansion game.

There's usually somebody wanting the telly in our house so I'm really chuffed to be able to switch play some of my games on the gamepad without using the tv.

[Jake.]

I was thinking about getting one, the new Mario game looks fantastic and the reviews have been excellent. I agree with dropping the Wii brand, they should try to modernise the brand of the SNES again, the logo was brilliant and so easy to remember.

[Jake.]

I'd actually like to see them do a completely 2D, cartoony Mario game in the future, Super Mario Bros 4 or something

[Tom4784]

Imagine if they went the way of Sega and stopped making consoles and just made games, Mario and Zelda would sell millions on the Playstation and Xbox.

[Jake.]

Originally Posted by Dezzy

Imagine if they went the way of Sega and stopped making consoles and just made games, Mario and Zelda would sell millions on the PS3 and Xbox.

Ah so true, i'd never want it to happen though, they belong on Nintendo consoles, just wouldn't seem right

[Tom4784]

Originally Posted by Jake.

Ah so true, i'd never want it to happen though, they belong on Nintendo consoles, just wouldn't seem right

It'll happen eventually if they don't change their fortunes, they'll end up developing games for their Handhelds and other consoles. They really need a homerun with their next console.

[Jake.]

Originally Posted by Dezzy

It'll happen eventually if they don't change their fortunes, they'll end up developing games for their Handhelds and other consoles. They really need a homerun with their next console.

Yeah, sadly it's true, I really hope they can pull it together next time around. This generation for them isn't going to be a long one.

[Jake.]

Ah I love it so much

[Munchkins]

Originally Posted by Ninastar

bring back the n64

The best, always

[Smithy]

I hope they slash the price by 70% i might buy one then