TOKYO - Nintendo Co. sank to a worse-than-expected loss for the fiscal first quarter on lagging Wii U and 3DS video-game machine sales.
But the Japanese company behind Super Mario and Pokemon games stuck to its annual forecasts Wednesday for a $196 million profit on $5.8 billion in sales.
Kyoto-based Nintendo reported a $97.3 million April-June loss.
Quarterly sales totaled $732.3 million, down 8 percent from a year earlier.
Nintendo has been fighting to maintain profits amid competition from games and social media apps on smartphones and other mobile devices. The company also faces competition from rivals Sony Corp. and Microsoft Corp.
The success of "Mario Kart 8" game software released in May is helping boost Wii U sales. Nintendo sold 510,000 of the machines for the April-June quarter, far better than 160,000 for the same period the previous year.
But Wii U is not as popular as Nintendo had initially hoped for, and it has missed earlier sales targets.
Sales of the 3DS handheld have plunged, dropping to 820,000 for the latest quarter from 1.4 million units a year ago.
Nintendo stuck to its latest target of selling 3.6 million Wii U and 12 million 3DS machines for the fiscal year through March 2015.
Nintendo said it will start offering strong game software in the months ahead, such as "Super Smash Bros. for Wii U."
The year-end and New Year's seasons are important sales periods for the company, practically determining its fortunes for the whole year.
Nintendo is also launching "amiibo," which are figures that connect and interact with games. How that might catch on is still unclear, but it holds potential for Nintendo.