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Nintendo expected to report gargantuan loss

Strong yen and slow 3DS sales to blame.

Nintendo will tomorrow report a gargantuan loss, according to a Japanese newspaper.

Nintendo will post a loss of about 100 billion yen (£820 million) for the first half ending 30th September 2011, the Nikkei business daily reported today (via Reuters).

That's a substantial increase on the 55 billion yen loss Nintendo forecast. Nikkei said it expects Nintendo to post a first half net loss greater than the 35 billion yen it projected. Shares dropped by 7.5 per cent following the news.

Nintendo has this year suffered a battering from an increasingly strong yen and slow Nintendo 3DS sales.

Earlier this year it announced a huge 3DS price cut, and boss Satoru Iwata slashed his own wage in half.

Nintendo will be hoping 3DS games such as Mario Kart 7 and Super Mario 3D Land, couple with the cheaper price of the console itself, will boost sales this Christmas.

And despite the losses, Nintendo expects to make a full-year operating profit of 35 billion yen (£287 million).

Nintendo will announce its second quarter report tomorrow.

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