Nintendo cuts profit forecast by 82%

If it wasn't clear already: the 3DS has not been a home run for Nintendo. In its revised earnings forecast for the fiscal year ending March 2012, the company dropped its estimated profit to ¥20 billion ($257M), an 82 percent drop from the ¥110 billion ($1.41B) it expected. The company stated the modification had been done to reflect "trends of stronger-than-expected yen appreciation and sales performance, the decided price reduction of the Nintendo 3DS hardware, and the sales outlook for the holiday season."

A similar cut in Japan (effective August 11) will take the system from ¥25,000 (around $317) to ¥15,000 ($190).

The steep profit reduction isn't Nintendo's only glaring concern, as the company couldn't regain investor confidence after announcing the Wii U at E3 and its stock currently sits at five-year lows.

For the first quarter ending June 30, Nintendo saw its net sales cut by half from the same period last year to ¥93 billion ($1.2B), causing a ¥38 billion ($489M) loss in operating income, with a net loss for the quarter staying relatively even to last year's at ¥26 billion ($334M).

This article was originally published on Joystiq.