Nintendo Q1 operating loss worse than expected

Japanese video game designer and producer Hideki Konno talks about his latest production

Japanese video game designer and producer Hideki Konno talks about his latest production "Mario Kart 8" during the Wii U Software Showcase at E3 in Los Angeles, June 11, 2013. REUTERS/Gus Ruelas

REUTERS

, Last Updated: 11:35 AM ET

TOKYO - Japanese video game maker Nintendo Co Ltd 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.

Nintendo's 9.47 billion yen ($100.48 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% 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 Corp 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.


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