Nintendo slashes its profit forecast by half blaming sales slump and the yen

Nintendo has dramatically reduced its profit forecast for the year by just more than half, blaming slow sales and the strength of the Japanese yen.

The video games giant announced it had slashed its predicted profits for the year ending on March 31 from 35 billion yen (about £222 million) to 17 billion yen (£108 million) in a notice of financial modifications.

Nintendo said the current strength of the yen means it anticipates losing 20 billion yen in foreign exchange losses because about three quarters of its total sales are overseas.

It has also not had as much success as it hoped with its 3DS portable gaming device and its Wii U console.

Nintendo will now be pinning its hopes on the launch of its first phone app Miitomo, which is due to be released in March. A new NX gaming platform is expected to be released in June.

 

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