Nintendo's latest financial report has posted substantial losses in the first six months of 2012, which has been blamed on weak 3DS sales and an unfortunate Yen exchange rate. They're actually on the up compared to last year... but they're expecting the worst.
According to the report - enjoy nitpicking it here - Nintendo logged losses of £219 million, which are actually a substantial improvement compared to the £551m black hole they faced during the same period in 2011. In the small print, Nintendo notes that 5.06 million 3DS units were sold, with the new 3DS XL model "enhancing" sales in Japan.
However, Nintendo still had to revise their sales projections by a considerable margin. Despite originally expecting sales of £157m over the financial year, the new report slashes the projection to a 'mere' £47 million, suggesting that their faith in the Wii U becoming a major launch success might be starting to waver. To say the least.
"Weaker than expected" 3DS sales in non-Japanese territories and a lowered Yen exchange rate play a factor in the numbers, though it's worth noting that massive Wii U manufacturing costs is also affecting their bottom line.
UPDATE: A closer look at the report suggests that Wii sales are also slowing down, resulting in a relatively disappointing 1.32 million sales compared to six times that number last year. Nintendo seem to think that the Wii will continue to sell after its successor launches, but we're not entirely convinced...