* Nintendo to report July-Sept earnings on Thursday
* Forex losses of 40 bln yen expected -Nikkei
* First half net loss also likely larger than forecast
* Company projects full-year operating profit of 35 bln yen
TOKYO, Oct 26 Nintendo Co is expected
to post a recurring loss of about 100 billion yen ($1.32
billion) in the first half ending on Sept. 30, much worse than
the 55 billion loss the company has forecast, the Nikkei
business daily said on Wednesday.
Shares of the Japanese games maker tumbled as much as 7.5
percent after the news, to 10,800 yen.
Nintendo, which dominated the games industry for years with
its DS handheld game machines and Wii home consoles, has
struggled to win popularity for its new generation 3DS gadget,
as casual gamers turn to smartphones and tablets from Apple Inc
Nintendo, like many Japanese firms, is also facing a massive
hit from the strong yen.
The Nikkei said in its online edition the company had
incurred 40 billion yen in foreign exchange losses, mostly
against the euro , and would likely also post a first
half net loss greater than the 35 billion yen it has projected.
A spokesman for Nintendo declined to comment on the report.
The company is due to announce its July-September earnings on
Nintendo, which makes 80 percent of its sales overseas, is
facing a slump in the value of its cash deposits and accounts
receivable in foreign currencies as the yen rises, the Nikkei
The games giant behind the Super Mario franchise slashed its
full-year operating profit forecast in July to a 27-year low of
35 billion yen, as it cut the price of the 3DS by about
one-third to try to boost weak sales.
($1 = 75.770 Japanese Yen)
(Reporting by Chang-Ran Kim and Isabel Reynolds; Editing by
Joseph Radford and Edmund Klamann)