Nintendo releases grim earnings forecast

Nintendo Co. has updated its full-year financial forecast – and it isn't looking bright.

The projected losses have more than tripled since the last estimate, partly due to lower than expected sales of the Nintendo 3DS.

The company is now predicting a net loss of 65 billion yen (just over NZ$1 billion) by March this year.

Predictions earlier in the year were that Nintendo would lose 20 billion yen.

Forecasted sales for the Nintendo 3DS have dropped from 16 million to 14 million, even though the device has been made much cheaper. Projections for the Wii have also fallen, from 12 million to 10 million.

This is the first full-year loss Nintendo has suffered since 1981, meaning even during the days of the not-so-popular Gamecube, the gaming giant still managed to maintain a profit.

However, much of the loss is due to the strength of the yen, with around 80% of Nintendo's revenue coming from outside Japan.

This does not change the fact that net sales were also down in a nine-month period, year-over-year.

Some analysts have also blamed the increasing popularity of smartphones and tablets for the problems of console sales.

Do you think Nintendo can still come back, or is the former gaming powerhouse finally on the way out?