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Nintendo Makes Surprise Return To Profit
Oct 29th 2014, 09:29

Nintendo achieved a surprise return to profit in its second quarter following four years of annual losses.

The struggling Japanese video game maker made an operating profit of 215m yen (£1.2m) for the period between July and September, compared with an 18bn yen loss in the same quarter a year earlier.

The company credited a significantly weaker yen for boosting its bottom line.

A weaker yen helps make Japanese exporters more competitive overseas and inflates the value of their repatriated profits.

The currency boost offset slowing sales, though Nintendo has seen strong demand for new games on the Wii U console such as Super Smash Bros and Mario Kart 8. 

It maintained its annual profit guidance of 40 billion yen (£229m).

The Kyoto-based firm - best known for its Super Mario and Pokemon franchises - has been battling intense competition from rivals as consumers flock towards downloadable games for smartphones and other mobile devices.

It has also struggled in its console market, with Sony outselling it for the first time in eight years because of the popularity of the Playstation 4.

Demand for Nintendo's latest console - the Wii U - has lagged behind the original Wii, the most popular console of the last generation.

The company blamed weak sales of the Wii U and its handheld 3DS device for its last annual loss.

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