Nintendo expected to lose 65 billion Yen this year

Nintendo is expected to lose 65 billion yen ($840 million) this year, more than three times the amount it had earlier predicted due to the strong yen and price cuts. The Kyoto-based firm also downgraded its annual sales forecast to 660 billion yen ($8.53 billion) for the year to March, from an earlier forecast of 790 billion yen ($10.21 billion). Nintendo in August cut the price of its 3DS console from 25,000 yen ($323) to 15,000 yen ($193) in Japan, followed by similar cuts in foreign markets to boost unit sales going into the key Christmas season.

But the move failed to make up for sagging sales seen earlier in the year, as Nintendo faced tough competition from smartphones, tablet computers and social networking websites. In the run-up to the holiday shopping season, Nintendo introduced 3DS versions of two popular game franchises, with Super Mario 3D Land and Mario Kart 7. Nintendo is to phase out the popular Wii, while it has announced plans to introduce the next version of the living room console, the Wii U, in 2012.

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