Nintendo Earnings Collapse

Nintendo earnings collapsed and so did its forecast. The firm said it would launch a new version of the Wii by year end in the hope that it can reverse its fortunes. That may not be so easy. Sony’s (NYSE: SNE) PS3 has gained market share, and Microsoft’s (NASDAQ: MSFT) new Xbox Kinect has helped it take the lead in sales in some markets

According to Bloomberg:

The net loss in the year ending in March may be 65 billion yen ($838 million), compared with an earlier forecast for a loss of 20 billion yen, the Kyoto, Japan-based company said in a statement today. Today’s figure was more than the average loss of 29 billion yen forecast by 18 analysts tracked by Bloomberg.

President Satoru Iwata, who cut 3DS prices by as much as 40 percent last year, said he expects full-year sales of 14 million units for the device that shows images in 3-D, down from an earlier forecast of 16 million. The creator of “Super Mario Bros.” games is predicting its first annual loss in at least three decades because of a surging yen and a consumer preference for gaming on the iPhone and iPad that helped Apple more than double profit in the quarter.