By Isabel Reynolds
(OSAKA, Japan ) - Nintendo Co Ltd will launch a successor to its aging Wii game console in 2012 as it bets on a new hit games platform to win back users lured away by rivals Microsoft and Sony, and reverse a fall in profits.
The maker of the DS handheld games device, which is also facing competition from smartphone makers including Apple Inc, said on Monday it will demonstrate a prototype of the new Wii in Los Angeles on June 7 at the E3 game show.
Nintendo is looking to repeat past successes in the gaming market. The Wii took the industry by storm five years ago by offering family games such as tennis and bowling that appealed to non-traditional gamers.
This time around, however, Nintendo will find it harder to sidestep its competitors and must also contend with a burgeoning smartphone market that didn't exist in 2006, said Mitsushige Akino, Chief Fund Manager at Ichiyoshi Investment Management.
"Core users and game lovers that will certainly buy it, but I think it will be hard to capture buyers outside of that group," he said.
On Monday, Nintendo also reported its second straight fall in annual profit, which was half of a year ago, as demand for Wii games console fell. Having sold 86 million units since launching in 2006, sales last business year slipped by five million units to 15 million.
Nintendo company declined to provide further details of the new Wii.
"As for the details of exactly what it will be, we have decided that it is best to let people experience it for themselves at E3," Nintendo CEO Satoru Iwata, told a news conference.
"So I won't talk about specific details today, but it will offer a new way of playing games within the home," said Iwata, a former game designer.
Nintendo launched a glasses-free 3D-capable handheld games device, the 3DS, this year, to fend off increased competition from other game console makers and smartphone makers. It must also contend with Microsoft and Sony which have brought new products to the market since the Wii's debut.
In March, Microsoft said it had sold more than 10 million Kinect motion-sensing game system units worldwide in just over four months, making it the fastest-selling consumer device on record. The infrared camera add-on for the Xbox game console tracks body gestures for video games. Sony's rival motion sensing device is dubbed Move.
In the business year just ended, Wii console sales fell to 15.1 million units from 20.1 million a year earlier. It expects sales to fall by a further 2 million units this business year.
Sales of its non-3D handheld DS shrank by almost 10 million units to 17.5 million, and the company expects that to slide to 11 million this term.
Nintendo' operating profit fell 52 percent to 171.1 billion yen ($2.09 billion) in the year ended in March from 356.8 billion yen the previous year, below a Thomson Reuters SmartEstimate of 200.8 billion yen.
SmartEstimates put more weight on recent forecasts by highly rated analysts.
Nintendo expects operating profit of 175 billion yen for the year to March 2012, compared with a consensus of 215.8 billion yen, based on eight analysts polled by Thomson Reuters I/B/E/S after the March 11 disaster.
Nintendo shares closed up 0.9 percent ahead of the earnings report in a flat broader market. ($1 = 81.845 Japanese Yen)
(Writing by Anshuman Daga and Tim Kelly; Editing by Lincoln Feast)
Copyright 2011 Thomson Reuters. Click for Restrictions
Our 2024 Coverage Needs You
It's Another Trump-Biden Showdown — And We Need Your Help
The Future Of Democracy Is At Stake
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
The 2024 election is heating up, and women's rights, health care, voting rights, and the very future of democracy are all at stake. Donald Trump will face Joe Biden in the most consequential vote of our time. And HuffPost will be there, covering every twist and turn. America's future hangs in the balance. Would you consider contributing to support our journalism and keep it free for all during this critical season?
HuffPost believes news should be accessible to everyone, regardless of their ability to pay for it. We rely on readers like you to help fund our work. Any contribution you can make — even as little as $2 — goes directly toward supporting the impactful journalism that we will continue to produce this year. Thank you for being part of our story.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
It's official: Donald Trump will face Joe Biden this fall in the presidential election. As we face the most consequential presidential election of our time, HuffPost is committed to bringing you up-to-date, accurate news about the 2024 race. While other outlets have retreated behind paywalls, you can trust our news will stay free.
But we can't do it without your help. Reader funding is one of the key ways we support our newsroom. Would you consider making a donation to help fund our news during this critical time? Your contributions are vital to supporting a free press.
Contribute as little as $2 to keep our journalism free and accessible to all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you'll consider contributing to HuffPost once more.
Support HuffPostAlready contributed? Log in to hide these messages.