Reuters:

Nintendo Co Ltd posted a sharp drop in quarterly profit and forecast a bigger-than-expected full-year loss, its first at an operating level, as it battles a strong yen and its games devices lose ground to gadgets such as Apple’s iPhone.

Nintendo profit dropped for the October-December quarter, showing fewer people than expected bought Nintendo’s game systems. The company’s 3DS handheld system hasn’t sold nearly as well as it expected, and it’s going to replace its aging Wii system with a new product, the Wii U, later this year.