Nintendo taps smartphone apps to increase console sales

Nintendo is trying to modify its game consoles so customers can use smartphone applications on them, as the struggling Japanese company aims to return to profitability.

The Japan Times reported Monday that anonymous company sources revealed the console maker is betting on third-party smartphone apps to spur device sales. This, in turn, will lead to a growth in popular game titles on its platform, it added.

Nintendo will also focus on developing new software internally, the sources said.  

Nintendo had posted a net profit of 7.1 billion yen (US$71 million) for its fiscal year ended March 31, 2013, which was below its forecast of 14 billion yen (US$142 million). It also reported a full-year operating loss of 36.4 billion yen (US$366.4 million) following worse-than-expected sales of its latest game console Wii U. This is Nintendo's second consecutive annual operating loss.

Company president Satoru Iwata said it will roll out new game titles for Wii U, which is equipped with a touch screen, from this summer through to next year and it expects these new offerings to help drive console sales this year.