July 28, 2011 / 7:15 AM / in 6 years

Nintendo posts Q1 loss, slashes full-year profit outlook

TOKYO, July 28 (Reuters) - Japan’s Nintendo Co reported a first-quarter operating loss, hurt by sluggish sales of its 3DS handheld game player and a strong yen, and slashed its full-year forecast.

The videogame machine maker booked an April-June operating loss of 37.7 billion yen ($483.6 million), a worse result than the market consensus estimate of a 7.1 billion yen profit in a poll of four analysts by Thomson Reuters I/B/E/S.

The Kyoto-based company, which also makes Wii consoles and software, slashed its annual operating profit forecast to 35 billion yen from an initial forecast of 175 billion yen.

The new estimate is lower than the market consensus of 154.9 billion yen based on 24 analysts polled by Thomson Reuters I/B/E/S.

Weaker-than-expected sales of Nintendo’s 3DS handheld game player and doubts over the mass appeal of a successor to the Wii home console have disappointed investors in the firm, which competes against Sony Corp and Microsoft .

Shares in Nintendo have tumbled about 30 percent since the company issued its previous annual forecast on April 25, versus a 2 percent rise in the benchmark Nikkei average during the same period. ($1 = 77.965 Japanese Yen) (Reporting by James Topham; Editing by Vinu Pilakkott and Edmund Klamann)

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