Platform holder Nintendo has had a difficult start to its financial year, with a loss of £578 million for the first half of 2011.
The period takes in the six months to September 30th, 2011.
The firm has suffered weaker than expected demand for its DS and new 3DS handheld. The platform holder has also seen a smaller number of hit titles, a much stronger Yen against the dollar and has had the bottom line impacted by price revisions on DS and Wii.
The firm now expects to make an annual net loss of up to 20 billion yen (£165m).