The Japanese games company said it will post an operating loss of US$220 million for the year, instead of a profit of US$220 million in its previous estimate, due to lower-than-expected sales in the year-end sales season and the weaker yen.
However, Nintendo raised its net profit forecast for its next financial year to 8 billion yen (US$88 million), up from 6 billion yen (US$66 million).
Nintendo said the earnings forecast was modified to reflect a weaker Japanese yen as well as lower-than-expected sales outlook based on the sales performance during the year-end sales season and afterward.
In the Reuters report, Nintendo president Satoru Iwata said: "The sales of Wii U were smooth at the beginning, but since the turn of the year they have been losing momentum.
"Due to delays in software development, we had to postpone sales of software products we had planned to [release] early this year, which is interrupting our sales," Iwata said.
In a ZDNet report in September, market watchers noted that the overall game console market in Asia had been challenged by the rise of online and mobile games, especially when console devices had created a high entry barrier for consumers.