Nintendo reports Q1 loss and cuts full-year profit expectation 82%

A slow start for the launch of the 3DS has bitten Nintendo hard.

In its Q1 financials fro the period ending June 20th, the firm reported an operating loss of 7.7bn YEN ($483.6 million) and cut its annual profit forecast by 82 per cent from 175bn YEN to 37.7bn YEN.

The firm said that net income may total 20bn YEN ($257 million) for the year ending March 31, compared with Nintendo’s previous estimate of 110bn YEN.

Nintendo said the lower numbers came thanks to a below-expectations 3DS launch. The console sold 700,000 units in the quarter and 4.5m units of software.

Previously, CEO Satoru Iwata had boldly proclaimed that the 3DS console could sell 4m in its first month with 15m software sold in the same time.

Once the machine was out globally by March 2011, however, the firm had admitted uptake was slower than it wanted. In fact figures released by the firm today show that during the April to June quarter `the 3DS was outsold by both the original DS and the Wii home console.

As such it has today cut the price of the device – with up to 40 per cent slashed from the trade prices in all territories, Japan, Europe and North America.

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