By Isabel Reynolds
TOKYO (Reuters) – Nintendo President Satoru Iwata dismissed the idea that the age of the dedicated handheld games device was over and said he aimed to return the company to substantial profit in 2012/13, after it warned of its first ever operating loss this year.
Shares in Kyoto-based Nintendo Co Ltd tumbled nearly 8 percent to an 8-year low after it slashed its full-year guidance for the third time in 6 months, and analysts said the potential market for its products was shrinking rapidly.
The creator of the Super Mario franchise reported a sharp drop in quarterly earnings, as its sales of its games devices that have dominated the industry for years were hit by competing gadgets such as Apple Inc’s iPhone.
Iwata said he blamed the dismal results on a mixture of strategic errors and the difficult business environment created by the strong yen and European consumer gloom.
“Nintendo is facing its worst results since it entered the games business. What matters now is how Nintendo can make a profit from next year onwards, even under these harsh conditions,” he told an analysts’ meeting.
The maker of the Wii home console and DS handheld games is struggling
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