Nintendo reports 61pc fall in profit

 
City A.M. Reporter
Nintendo posted a 61 per cent drop in quarterly operating profit on Thursday and forecast a 45bn yen (£369m) operating loss for the year to March, far worse than market expectations, hit by weak sales and the strong yen.

The full-year operating loss will be the first since the company started announcing earnings in their current form in 1981. The company blamed yen strength and weaker-than-expected sales.

The creator of the Super Mario franchise dominated the video games industry for years with its DS handheld players and Wii home consoles, but is now struggling to keep up with more versatile gadgets like Apple's smartphones and tablets.

It cut its annual forecast for its ageing Wii console to 10m devices from 12m, and for the 3DS handheld games device to 14m from 16m.

"We had higher expectations for the year-end season, but failed to meet them," President Satoru Iwata told reporters in Osaka.