Nintendo cuts 2016 earnings guidance and says it will sell 1M fewer 3DSes than predicted

Nintendo needs to release a new system or get that mobile money rolling in soon because its current business is coming up short.

The publisher revealed this morning in a financial filing on its site that it is expecting to generate 12.3 percent less in revenues for its fiscal 2016 than it originally predicted. Nintendo is now telling investors that it will finish the 12-month period ending March 31 with $4.43 billion (500 billion yen) in sales. That’s compared to the $5.05 billion (570 billion yen) the company originally predicted it would make this fiscal year. This diminished guidance comes as the result of an unfavorable foreign exchange rate for the Japanese yen and sluggish sales for the company’s 3DS portable gaming system.

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Nintendo is now anticipating on making less in revenues in fiscal 2016 than fiscal 2015’s $4.87 billion (549 billion yen). This suggests the company will need to complete its transition from the Wii U and 3DS to the NX and smartphones rather quickly if it wishes to keep its investors happy. Right now, the company is planning to unleash Miitomo, its first iOS and Android app, next month. And at some point this year, the company will start talking about the NX dedicated-gaming platform in detail.

Those new initiatives, which Nintendo president Tatsumi Kimishima says are the key to returning to “Nintendo-like profits,” will need to replace a dearth of sales for both the Wii U and the 3DS.

As part of its financial revision, the company revealed that it is now expecting to sell 6.6 million 3DSes from April 2015 through March 2016. That’s down from an earlier estimate of 7.6 million. And both of those guesses are down from the 8.73 million the 3DS sold in fiscal 2015.

Fewer systems sold is also driving down software sales. The company was expecting 56 million games sold (down from 62.7 million in the previous year), but it has revised that number down to 47 million.

Nintendo did not revise the sales for the Wii U or even the Wii. The company is still planning to sell 3.4 million Wii U consoles and 100,000 Wiis. But both of those platforms will see a bit better software sales with Wii U doing 27 million copies sold compared to 23 million and Wii doing 7 million rather than only 4 million copies.