Nintendo first quarter operating loss worse than expected, outlook unchanged
TOKYO (Reuters) - Japanese video game maker Nintendo Co Ltd posted a worse-than-expected operating loss in the April-June quarter as it struggles with shrinking sales and dull demand for its Wii U console.
The company kept intact its outlook for a return to profit in the year to next March, however, counting on hit games such as Mario Kart 8 to give the Wii U a much-needed sales boost.
Nintendo's 9.47 billion yen (54.74 million pounds) operating loss in its first fiscal quarter exceeded expectations of a 4.93 billion yen loss based on four analyst estimates cited by Thomson Reuters StarMine. Sales fell 8.4 percent to 74.7 billion yen in the quarter.
Nintendo sold 510,000 Wii U consoles compared with just 160,000 in the same quarter last year, when its full-year sales also fell well short of a target of 9 million. Cumulative sales of the Wii U, released in late 2012, totalled 6.68 million at end-June, well short of 8.7 million for the Sony Corp PlayStation 4 which was released a year later.
Nintendo expects a full-year operating profit of 40 billion yen, above analysts' average estimate of 25.02 billion yen according to Thomson Reuters StarMine.
(Reporting by Sophie Knight and Edmund Klamann; Editing by Chris Gallagher)
