Nintendo forecasts net loss, slashes Wii U sales target

 TOKYO: Japanese gaming giant Nintendo on Friday warned it would swing back into the red this fiscal year as it slashed its annual sales target for the Wii U game console.
The company said it now expects a loss of 25 billion yen ($240 million) in the year to March, reversing an earlier 55 billion yen net profit forecast.

It also said it expected to sell just 2.8 million units worldwide of the Wii U, way off earlier predictions of 9.0 million consoles.
Nintendo, maker of the Donkey Kong and Super Mario brands, said its hopes for big holiday season demand were dashed, forcing it to cut forecasts as demand for the console's high-margin software slumped.
"As sale of hardware failed to reach our expected levels in the year-end sales season, sales of software, which have a high ratio of profit margin, fell significantly below our forecast," it said in a statement.
Nintendo's top executive is to hold a press briefing in Osaka around 4:30 pm local time (0730 GMT).
The surprise revision comes as Nintendo's key domestic rival Sony saw record demand for its new PlayStation 4 console, which had already sold more than 4.2 million units by the start of the year.
The console was launched on November 15.
US rival Microsoft has also seen robust demand for its XBox One console, which sold more than one million units in the 24 hours after its November release.