Back in April, Nintendo said it was counting on increased 3DS sales and profitability to help turn around the first full-year loss in the company's history. Today, Nintendo admitted that demand for its latest portable and the aging Wii continue to lag behind expectations, dragging down profits.
It's not like the 3DS is a Virtual Boy-level failure—the system did sell over 5 million units worldwide in the six months through September, including 2.1 million sales for the well-designed 3DS XL. First-party titles like New Super Mario Bros. 2, Super Mario 3D Land, and Mario Kart 7 continue to sell in the millions as well.
But Nintendo still lowered 3DS sales expectations for the full fiscal year, which ends in March, from 18.5 million to 17.5 million, reflecting increasingly tough competition from mobile and tablet games. The outdated Wii also continued its long sales decline, selling only 1.3 million units in the last six months due to what Nintendo admitted were "few new title releases." The company cut full-year sales expectations for the Wii drastically, from an expected 10.5 million in April to 5 million today.