Nintendo Returns To Profit On Mobile Gaming But Weak Software Sales Drag Down Outlook

[Ron Burgundy]

By Makiko Yamazaki OSAKA (Reuters) - Nintendo Co Ltd on Tuesday reported its first quarterly profit in a year as its nascent mobile games division started to bring in revenue, though not enough to prevent weak console software sales dragging down its annual earnings forecast. While the quarterly profit was just reward for the move, a one-third cut to its full-year outlook is likely to disappoint investors who had hoped mobile profit would grow quick enough to offset falling earnings in Nintendo's mainstay console business. "I'm not surprised at the cut because Nintendo's earnings tend to fluctuate wildly," said analyst Hideki Yasuda at Ace Research Institute.

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