Enter multiple symbols separated by commas

Nintendo hit by sliding sales, posts loss

Japanese video game maker Nintendo posted a worse-than-expected operating loss in the April-June quarter as it struggles with shrinking sales and dull demand for its Wii U console.

The company kept intact its outlook for a return to profit in the year to next March, however, counting on hit games such as Mario Kart 8 to give the Wii U a much-needed sales boost.

The Nintendo Wii U
Source: Nintendo | Facebook
The Nintendo Wii U

Nintendo's 9.47 billion yen ($92.70 million) operating loss in its first fiscal quarter exceeded expectations of a 4.93 billion yen loss based on four analyst estimates cited by Thomson Reuters StarMine. Sales fell 8.4 percent to 74.7 billion yen in the quarter.

Nintendo sold 510,000 Wii U consoles compared with just 160,000 in the same quarter last year, when its full-year sales also fell well short of a target of 9 million. Cumulative sales of the Wii U, released in late 2012, totalled 6.68 million at end-June, well short of 8.7 million for the Sony PlayStation 4 which was released a year later.

Nintendo expects a full-year operating profit of 40 billion yen, above analysts' average estimate of 25.02 billion yen according to Thomson Reuters StarMine.

Contact Earnings


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.