Nintendo profits slump
Company expects annual operating loss of $575 million
Nintendo has posted a sharp drop in its quarterly profit and has forecast a larger than expected full year loss, according to Reuters.
The company is battling against a strong Yen and its gaming devices are struggling to compete against more versatile devices such as the iPhone.
The creator of the Super Mario franchise used to dominate the video game industry with its console system, but its DS handheld players and Wii home consoles fight for share with Sony and Microsoft.
Nintendo now expects an annual operating loss of $575 million, dwarfing pervious expectations of a $54 million loss, based on the average of 21 analyst forecasts.
Nintendo has also slashed its forecast for annual sales of its ageing Wii console to 10 million devices from 12 million, and for the 3DS handheld games device to 14 million from 16 million.
"We had higher expectations for the year-end season, but failed to meet them," Nintendo president Satoru Iwata told Reuters in Osaka.
Slow sales forced the company to slash its 3DS console price in August, six months after the device was launched.
The company is planning to launch the next-generation Wii, the Wii U in Japan, the United States, Europe and Australia in the year-end season, Iwata told reporters, although the once ground breaking motion detection capabilities of the Wii have been eclipsed by Sony Corp's Move and Microsoft Corp's Kinect.