Nintendo will launch new Wii to reverse slump in its profits

City A.M. Reporter
NINTENDO has said it will launch a successor to its ageing Wii game console in 2012 as it struggles to win back users from rivals Microsoft and Sony and seeks to reverse a slump in profits.

Nintendo said yesterday that it expects profits to remain almost flat in the current financial year, despite the launch of its much-touted 3D-capable handheld games device, whose sales in Japan have been overshadowed by the devastating 11 March earthquake.

The maker of the DS handheld game player, which is also facing competition from smartphone and tablet makers including Apple, said it will demonstrate the Wii’s replacement in Los Angeles on 7 June at the E3 game show.

Yesterday, the company revealed quarterly profit of just 12bn yen (£88.63m), down from 59.9bn yen a year earlier, as it slashed prices and the strong yen hurt the value of its sales abroad.

Having sold 86m units of the Wii since its launch in 2006, sales last business year slipped by a quarter to 15m.

Nintendo expects first half profit for the current financial year to be down more than 63 per cent on the previous year, with a bounce back in the second half.