Nintendo’s rough patch hasn’t ended yet. The company reported today that its sales for the past fiscal year declined 10 percent to $5.6 billion, alongside an annual net loss of $457 million.
In addition, the company announced that it had only sold 2.7 million units of the Wii U, and 12.24 million units of its handheld 3DS console. Those sales figures missed lowered projections the company set last quarter, for Wii U and 3DS sales of 2.8 million units and 13.5 million units respectively.
Nintendo originally planned to sell 9 million Wii U consoles this fiscal year, but so far has only been able to sell slightly more than 6 million units over the life of the device. For comparison, Sony recently announced that it has sold 7 million PlayStation 4 consoles since its launch in November, and Microsoft has sold 5 million Xbox Ones in roughly the same period.
The news would seem to be a knock on Nintendo’s strategy of building a small console that doesn’t bring the same sort of raw power that its competitors have on the market. Third-party developers have stayed away from the console following its lackluster sales, and consumer interest in the Wii U seems to be waning as Microsoft and Sony ramp up their offerings.
Nintendo, which has its North American headquarters in Redmond, does have a couple aces up its sleeve. The 3DS is still the market leader in handheld consoles, and Nintendo has proven franchises including Mario, the Legend of Zelda series, and Pokémon. But it’s unclear if those will be enough to keep the company operating in its current form.
According to its earnings release, Nintendo sees a somewhat brighter future ahead. The company is projecting that the next fiscal year will bring almost $200 million in profits, and it plans to double down on creating software for the Wii U that highlights the console’s gamepad, which sets Nintendo’s offering apart from other products on the market.