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Nintendo stems the tide of losses with strong 3DS sales

updated 07:54 am EDT, Wed July 25, 2012

Nintendo on track to deliver full-year profit of $447 million

Nintendo has stemmed the tide of losses, by bucking analysts predictions in recording a loss only half as large as expected, reports Reuters. Its first quarter results (pdf) rebounded somewhat on the back of aggressive pricing on its 3DS hand held gaming console, which doubled its sales. The company also maintained its outlook and says that it is on course to report a record an operating profit of $447 million for the full fiscal year.

Although Wii sales were down to just 710,000 shipped compared to 1.56 million sold over the same period in 2011, it doubled sales for its 3DS console through an aggressive pricing strategy with sales of 1.86 million up from 710,000. Overall, it expects to ship a total of 10.5 million Wii consoles, with a further boost in console sales expected to be spurred by the introduction of its successor, the Wii U console later this year. Software sales for the 3DS have also contributed to Nintendo's recovery after recording its first ever loss last quarter.

However, longer term, analysts believe that the company will struggle to drive future growth on the back of console sales alone. Many hold the view that the arrival of the iPad and iPod touch, and the rise of the App Store, as well as the Android equivalents, will combine to stymie its ability to compete effectively in a gaming landscape that has shifted to casual games sold on the cheap. Ultimately, despite Nintendo's best efforts, it may follow Sega into becoming primarily a software developer for other platforms.

by MacNN Staff



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