Analyst lowers Nintendo forecasts following tepid earnings

Coinciding with Nintendo's reported losses for the first nine months of its fiscal year, analyst firm Wedbush Securities lowered its guidance for the company, noting that hardware price cuts and slow demand have significantly hindered its outlook for the fiscal year ended March 31. Wedbush maintained a Neutral rating for Nintendo, and lowered its full-year guidance from 723 billion yen to 660 billion, falling in line with Nintendo's own updated projections (which were lowered from 790 billion yen). The firm added that Nintendo's 3DS platform has sold better than expected of late, though its sales haven't been strong enough to make up for the waning momentum of both the Wii and DS. In fact, the 3DS platform could run into some trouble down the road, the firm said, as the handheld will have to compete with Sony's PlayStation Vita on top of the ever-evolving smartphone and tablet market. Looking forward into the 2013 fiscal year, Wedbush said that Nintendo has a chance to make up for its decline with its upcoming Wii U. According to the firm's predictions, the console is unlikely to be much more powerful than "its HD peers," so Nintendo will need to find an appropriate price to drive sales. According to a report from Bloomberg, Nintendo president Satoru Iwata said that the Wii U is on track to launch worldwide by holiday 2012.