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Nintendo cuts forecasts but still expects a return to annual profit

Nintendo cuts forecasts but still expects a return to annual profit

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Nintendo had a pretty good Christmas. The Kyoto video games giant posted an operating profit of ¥31.4 billion ($266 million) for its third fiscal quarter, selling 1.91 million Wii U consoles and 4.99 million 3DS portables. Buoyed by a weakened yen, net profit was ¥45.2 billion ($383 million) and revenue was ¥271,521 billion ($2.3 billion).

The solid holiday sales won't be enough for Nintendo to meet its forecast of ¥40 billion in operating profit for the financial year, however — the company has slashed that target in half, now expecting to make ¥20 billion. Since its account for the nine months so far stands at ¥31.6 billion, Nintendo is predicting it will lose more than ¥10 billion over the next three months.

The earnings release makes no mention of how Nintendo's Amiibos are performing. Earlier this month it emerged that the company has sold "nearly" 2.6 million of the collectible NFC-equipped figurines, which can unlock extra content in games like Super Smash Bros. for Wii U, Hyrule Warriors, and Mario Kart 8.

Although the Wii U has been picking up limited steam with a series of great games, Nintendo actually sold slightly fewer systems than it did a year ago. 3DS sales are down over 35 percent, as well, despite the launch of the new models in Japan and Australasia; the upgraded New 3DS XL will be released in North America and Europe next month. Still, it seems likely that Nintendo can close out the year in the black, suggesting its business has stabilized to some extent after a rocky couple of years.