Nintendo fully expects to begin making a profit on each Nintendo 3DS sold by the middle of the current fiscal year, which ends March 31, 2013. This suggests that units sold from September 2012 onwards will make money.
After a sales slump following a positive launch for 3DS, Nintendo reacted by dramatically cutting the price of the handheld, meaning it was making a loss on each unit sold. 3DS sales did, however, dramatically improve, with the installed base now at around 17 million.
Nintendo is also confident in its upcoming 3DS software line-up, which includes a new Brain Age this summer, New Super Mario Bros. 2 in August and a new Animal Crossing title which will release in Japan in the autumn.
The platform holder forecasts 3DS sales of 18.5 million units in the current fiscal year, with software sales of 73 million.
All this will help Nintendo to return to profitability, with net sales expected to reach 820 billion yen (£6.2 billion), translating to an operating income of 35 billion yen (£267 million), an ordinary income of 35 billion yen (£267 million) and a net income of 20 billion yen (£152 million).
It's a necessary turnaround, with Nintendo having reported its first ever annual loss.