But the Japanese technology company plans to make a comeback in the $93 billion video games market by launching a host of new games—including "Mario Kart 8" and a beat-'em-up called "Super Smash Bros." Nintendo says that, as a result, it will post an operating profit of 40 billion yen this financial year.
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The Wii U has been a major underperformer for Nintendo since its release in December 2012, in stark contrast with its predecessor which appealed to casual gamers across the world.
But while Nintendo is hoping the new releases will drive Wii U sales, analysts are not convinced this will solve the company's problems.
"There is a clear lack of strong launch titles based on popular Nintendo franchises that has harmed the uptake of the (Wii U) console," Sam Gee, senior technology and media analyst at Mintel, told CNBC in a phone interview.
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"They have got some games coming out which should prompt people towards Nintendo, but it's not going to get the same uptake the Wii had."
Since the PlayStation 4's release in November 2013, Sony has led the console battle, selling over 7 million units. Whereas Microsoft has sold 5 million of its Xbox consoles to retailers over the same period, according to market researchers NPD, although the actual number bought by customers is lower.