Although Nintendo missed its year-end fiscal target of selling 4 million 3DS units, the company said its new-fangled portable is off to a ‘smooth start,’ shifting 3.61 million units worldwide as of March 31.

Going forward, the company projects that it will sell through 16 million units throughout the next fiscal year, along with 62 million units of software titles. Despite the relatively healthy 3DS sales, an earnings report reveals that Nintendo’s net income dropped 66 percent to 77.6 billion yen for the year, attributing the decline to a Nintendo DS price drop and “appreciation of the yen.”

CEO Satoru Iwata has previously said that the company’s long-term goal is to eventually eclipse its current DS install base — which sits at around 146 million units — with the 3DS.

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Read more: DS Sales Take Dive, Nintendo Predicts 4 Million In 3DS Unit Sales for First Month,  Iwata Sets Sights On Topping DS Sales With 3DS,  Iwata: No Wii Or DS Price Cut This Year,  Nintendo’s Financial State Is Looking Up: 3DS Soon To Eclipse 3 Million Unit Sales, Mario Kart 7 Sells 420K,  Nintendo Calls DS ‘The Nation’s Best-Selling Video Game System’