This year Nintendo, the world’s largest manufacturer of video-game devices, cut its profit forecast by 5.4 percent and lowered its estimate for sales among depreciating demand.  The lowering of product demand is due to the increasing competition from smartphone and tablet computers. In total, retail sales of video-game devices and accessories in the U.S. fell by 24 percent last month compared to a year earlier. This lack of profits was not what analysts had predicted while previously putting together Nintendo’s profit forecast.

A company’s forecast is a prediction of the possible scenarios that the firm will face and the likelihood of them happening. It is not a single number but rather an option followed by a percent. In other words, is a process used to estimate future patterns by analyzing business data.