Nintendo Triples Annual Net Loss Forecast to $837 Million

Japanese game giant Nintendo said Thursday it expected to lose 65 billion yen ($837 million) this year, more than three times the amount it had earlier predicted, citing a strong yen and price cuts.

The Kyoto-based firm also downgraded its annual sales forecast to 660 billion yen for the year to March, from an earlier forecast of 790 billion yen.

Its new operating loss forecast stands at 95 billion yen, also worse than earlier projection for a loss of 30 billion yen.

The company in August cut the price of its Nintendo 3DS console from 25,000 yen to 15,000 yen in Japan, followed by similar cuts in foreign markets to boost unit sales going into the key Christmas season.

But the move failed to make up for sagging sales seen earlier in the year, as the company battles tough competition from smartphones, tablet computers and social networking websites.

"The earnings forecast has been modified to reflect the trends of stronger-than-expected yen appreciation and the sales unit forecasts revised based on current sales performance," the company said.

In the run-up to the holiday shopping season, Nintendo introduced 3DS versions of two popular game franchises, with "Super Mario 3D Land" and "Mario Kart 7."

Nintendo was also starting to phase out the popular Wii, while it has announced plans to introduce the next version of the living room console, the Wii U, in 2012.

Costs associated with its 3DS handheld game system have weighed on its earnings.

The strong yen, now standing 77.54 to the dollar compared with 82.90 a year ago, also added pressure.

For the nine months to December, the company recorded a net loss of 48.4 billion yen against a net profit of 49.6 billion yen in the same period a year ago.

Its operating loss came to 16.4 billion yen, a dramatic reversal from a 158.8 billion yen profit in the previous year.

Sales dropped 31.2 percent on year to 556.2 billion yen.