Nintendo Wii U 'flogging a dead horse' - Gaming expert
31 July 2013 Last updated at 16:32 BST
Sales of Nintendo's latest games console, the Wii U, have slowed with just 160,000 units sold in the three months to June.
Nintendo has sold 3.61 million units of the Wii U so far and expects to sell nine million units by March 2014.
Overall sales fell nearly 4% to 81.5bn yen ($832m; £549m) but the firm reported a profit for the latest quarter, helped by the weaker value of the yen.
UK Games editor at IGN.com Keza Macdonald told BBC World News that the smartphone market was encroaching on that of handheld consoles.
"The next six months is going to be absolutely crucial for Nintendo... If the Wii U doesn't pick up, it would be sensible to think about launching a new console rather than flogging a dead horse... 160,000 units is dismal".