(MENAFN- AFP) Japanese videogame giant Nintendo on Wednesday slashed its annual net profit forecast by more than half and said it remained in the red as it prepares to launch the revamp of Wii game console.
The Kyoto-based maker of the DS and Wii consoles said it now expects a net profit of 6.0 billion yen ($75 million) for the year to March, sharply lower than its earlier forecast of 20.0 billion yen.
It also posted a 28 billion yen net loss for the six months through September, sharply lower than the 70.27 billion shortfall in the same period a year ago.
Sales in the first half were down 6.8 percent to 200.99 billion yen, it said.
The company, which also makes the new 3DS console, blamed its lower forecast on a strong yen, which has hit Japan's exporters by making their products pricier overseas while shrinking the value of foreign-earned income.
Sluggish software and hardware sales, particularly overseas, also weighed, it said.
First half "sales of the Nintendo 3DS hardware and software were weaker in overseas markets than expected", the company said in a statement.
Nintendo has announced that its next-generation Wii U videogame consoles will hit the key US market in late November with a starting price of $300, as it looks to cash in on the Christmas rush.
The company last year slashed the price of the Nintendo 3DS by about 40.0 percent in Japan after a lacklustre debut, followed by similar reductions overseas as it struggled to boost sales leading up to Christmas.
For the fiscal year that ended in March, Nintendo posted its first annual loss -- 43.2 billion yen -- since becoming a public company, blaming a soaring yen and price cuts on its consoles.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.