Nintendo has bounced back into profit, thanks to a weaker Japanese yen.
The games maker reported an annual profit of 7.1 billion yen ($72m; £47m), It suffered a loss of 43 billion yen in the previous year.
But the company's sales dipped 1.9%, struggling against its rivals Sony and Microsoft, as the three battle it out in the $44 billion games market.
Weak sales of the Wii U and the handheld 3DS player led to a second straight operating loss in the year ended March 31, the Kyoto, Japan-based company said in an earnings statement yesterday.
The Wii U, priced starting at $300, features a 6.2-inch touchscreen controller that lets users wirelessly connect to the console and shift the display between the device and a TV. It is the industry's first new home-gaming console since 2006, the year Nintendo released its predecessor, the Wii.
President Satoru Iwata said new software titles will drive sales of the devices, helping Nintendo increase net income more than sevenfold in the year started April 1.
The "Super Mario" creator said yesterday it sold 3.45 million of its Wii U machines in the year ended March 31, compared with a 4 million- unit target it set in January and an initial projection of 5.5 million.
The company said a lack of game software had caused console sales to miss the targets.
Nintendo will face tougher competition this year from rival console makers in a market that's shrinking amid the shift to mobile devices.
Sony is promising to launch the latest version of its Playstation console later this year and Microsoft could also be set to release an updated Xbox by the busy festive season.
For more information on the video game market, see the latest research: Video Game Market
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