Nintendo Co. stayed deep in the red in the latest quarter, forcing the Japanese video game giant to cut its full-year forecasts and slash prices on its new 3DS handheld device.
Nintendo posted a net loss of 25.5 billion yen ($324 million) in the April-June period, worse than the 25.2 billion yen loss a year earlier. For the fiscal year through March 2012, Nintendo expects net profit of 20 billion yen, down 82% from its previous outlook, on sales of 900 billion yen. Sales during the quarter slumped more than 50%.
The Kyoto-based company blamed its lackluster sales on a dearth of hit titles for the Wii and 3DS, as well as a strong yen.
To fuel momentum, Nintendo decided it needed to dramatically drop prices just five months after it launched the 3-D version of its DS handheld device to high hopes. The move underscores how quickly the company's fortunes have turned since the Wii revolutionized the industry and flew off store shelves.
The 3DS will cost $169.99 in the U.S., down from $249.99.
"For anyone who was on the fence about buying a Nintendo 3DS, this is a huge motivation to buy now," Nintendo of America President Reggie Fils-Aime said in a statement.
The 3DS got off to a solid start when it launched but has since lost momentum. Analysts cite a lack of compelling content for the device and say consumers may now be waiting for Sony Corp.'s upcoming release of the new PlayStation Vita handheld, which will sell for $299 in the U.S.