TOKYO – Nintendo, the largest maker of video game consoles in the world, reported losses in its fiscal first quarter due to a stronger yen and product discounts.
The franchise creator of Super Mario however stuck to its forecast of having net profits that amount to 35 billion yen (447 million dollars), hoping that sales of titles like the latest installment of Dragon Quest and Square Enix will supplement the income for the rest of the fiscal year ending March 31.
This forecast contrasts with a consensus estimate of 32 billion yen in profits given by 21 analysts polled by Thomson Reuters I / B / E / S.
However, Nintendo will have trouble repeating the growth gained at the time of the Wii and DS releases.
The company faces increasing competition from Apple and other makers of mobile phones and tablets, forcing it to seek ways to retain its customer base along with rivals Microsoft and Sony.
Analysts say the change in playing habits could force Nintendo to seek the usage of Super Mario and other characters in devices built by other companies and not on their own consoles.
Nintendo reported an operating loss of 10.3 billion yen in the last quarter, compared to 37.7 billion yen in losses for the same period last year. That is half of the average forecast of 20.6 billion yen provided by three analysts.
Nintendo maintained its forecast to sell 10.5 million Wii consoles this year and 2.5 million DS handhelds. The company also stuck to the estimated sales of the 3DS portable which expects to sell 18.5 million units.
Nintendo is expected to launch the Wii U this year, a unit that is considered the successor of the 6-year old Wii. The Wii U is the first console in 16 years to launch with a Super Mario title, including a “GamePad” controller that functions as a tablet.