Nintendo warns of loss on weak console sales

Japanese video game maker Nintendo today predicted it will slide into the red this year amid weaker-than-expected sales of its Wii U and 3DS consoles.

The forecast of a ¥35 billion (£205 million) operating loss for the year to March compares with its previous prediction of a ¥100bn profit and would mark the third consecutive year of losses for the creator of the Super Mario franchise.

Osaka-based Nintendo said: “We failed to reach our target for hardware sales during the year-end, when revenues are the highest.

“As a result, the sale of high-margin software fell far short of our projections.”

Nintendo slashed its global Wii U sales forecast for the year by almost 70 per cent to 2.8 million units.

Faced with competition from Sony’s Playstation 4 and Microsoft’s Xbox One, the console has failed to emulate the success of its hugely popular predecessor, the Wii.