TOKYO: Nintendo cut its full-year outlook Wednesday blaming disappointing Wii U game sales and a strong yen, but it remained profitable thanks to the sale of the Seattle Mariners baseball team.
The warning came despite the immense global popularity of the Pokemon Go app this summer, which was downloaded by millions, as the franchise-creator does not own the game’s licence.
The Japanese videogame firm warned its fiscal year operating profit would come in at 30 billion yen, about one-third less than an earlier forecast, while sales would also be lower than expected.
On Wednesday, Kyoto-based Nintendo reported a 5.95 billion yen ($57 million) operating loss in the April-September period, the first half of its fiscal year, while revenue dived 33 percent from a year ago.
But the Super Mario maker’s net profit in the latest period jumped more than three-fold to 38.3 billion yen, as it booked a one-time gain from the sale of its controlling stake in the US baseball team in the summer.
Facing stiff competition from PlayStation 4 maker Sony and the rise in online gaming, Nintendo said earlier this year it would sell the team as it tries to repair its battered finances.
It has owned a stake in the Mariners since the early 1990s.
Nintendo’s latest results come days after its shares sank as a sneak peak at its long-awaited new console left gamers and analysts underwhelmed.
