Thursday, July 28, 2011

Nintendo Cuts Profit Forecast and Price of Key Product

TOKYO — In a striking reversal of fortune for the world's largest videogame maker, Nintendo drastically cut its annual profit outlook and said it would discount its new 3DS handheld device as it struggles to stem a flow of users to casual online games.

Nintendo said Thursday that it had tumbled to a loss of 25.5 billion yen for the three months to June 30, as sales plunged 50 percent from a year earlier. The loss prompted Nintendo to lower its annual profit forecast 82 percent to 20 billion yen ($257 million) for the year to March, down sharply from a previous estimate of 110 billion yen. The company also slashed its annual sales forecast by 18 percent to 900 billion yen.

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