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Nintendo looking into smart devices following profit shortfall

A failure to meet profit goals has led Nintendo President Satoru Iwata to declare that he is "thinking about a new business structure".

On Friday the gaming giant revealed that it is expecting to see a yearly net loss of 35 billion yen (£205 million), having previously forecast a profit of 55 billion yen (£320 million).

The dramatic change in revenue outcome has been attributed to poor sales of the Wii U and 3DS gaming consoles and continued faith in its traditional business model of selling cheap hardware and making the profit on the software.

In an effort to revive the company's fortunes, Iwata suggested that Nintendo would be rethinking its attitude towards smartphone gaming.

"Given the expansion of smart devices, we are naturally studying how smart devices can be used to grow the game-player business. It's not as simple as enabling Mario to move on a smartphone," Iwata said.

"If we think 20 years down the line, we may look back at the decision not to supply Nintendo games to smartphones and think that is the reason why the company is still here."

Previously, Nintendo has been reluctant to run its characters – household names like Mario, Donkey Kong and Link – on smartphones as it would mean no longer having control over the hardware that powers them.

However, with struggling sales of its consoles, Nintendo may be left with few other options than creating cut-price versions of its beloved creations.

Calls from the company's shareholders to develop versions of Nintendo's popular games for mobile devices were previously rebuffed by Iwata three years ago.