Nintendo reduces its expected sales for the Wii U to 2.8 million units, less than a third of what was originally projected. It also slashes the expected sales for the 3DS from 18 million to 13.5 million. They expect an operating loss of ¥35 billion (over $335 million) this year, making it the third year in a row they operate at a loss. Nintendo’s president, Satoru Iwata, speculates that a new business model may be needed to improve sales:
We are thinking about a new business structure. Given the expansion of smart devices, we are naturally studying how smart devices can be used to grow the game-player business.