Nintendo cuts forecast as Wii loses sparkle

In September, Sony's PlayStation 3 usurped the Wii to become the top-selling U.S. videogame console for the first time since its release, according to research group NPD.

Wii had dominated the global gaming industry for the past three years, as its motion-sensitive controller and cartoonish sports games wooed casual gamers, who normally avoid the fast-paced and intricate titles that appeal to die-hard fans.

But analysts said such demand may be waning.

"Nintendo would need to devise and establish a business strategy capable of driving structural change within the industry in order for us to turn bullish on the shares," Mia Nagasaka, an analyst at Barclays Capital, said in a research note this month.

Sony's PlayStation 3 is expected to get another boost in December when Square Enix Holdings Co launches the latest installment of its blockbuster "Final Fantasy" series of role-playing games.

Nintendo last month announced a 20 percent cut in the Wii's price, responding to similar cuts by Sony and Microsoft.

Also on Thursday, videogame maker Capcom Co Ltd reported a 58 percent rise in first-half net profit, buoyed by the popularity of its latest "Monster Hunter" and "Resident Evil" games.

Shares of Nintendo finished down 1.1 percent ahead of the results. The stock has declined about 28 percent so far this year, compared with a 14 percent rise in the Nikkei 225 share average.

(Editing by Chris Gallagher and David Holmes)

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