Nintendo has posted a first-half loss of 70.2 billion yen (£578 million), far greater than the 2 billion yen (£16.5 million) loss suffered during the same period last year.
On the back of the results the company forecast its first annual loss in 30 years, Bloomberg reports.
The platform holder said in a statement that its annual net loss may reach 20 billion yen (£165 million), the same total the company previously projected in profit.
Its full year sales forecast was cut from 900 billion yen (£7.4 billion) to 790 billion yen (£6.5 billion), while operating profit may be 1 billion yen (£8.2 million), versus 35 billion yen (£288 million) predicted earlier.
"Sales of Nintendo DS hardware and Nintendo 3DS software were weaker than expected," the company said. "In addition, the yen appreciation was beyond expectation."
Nintendo hasn't reported a full-year net loss since at least 1981, according to data on its website. The company's shares have fallen 53 percent year-to-date.
Last month, Nintendo boss Satoru Iwata shot down the possibility of the company turning to mobile games development to boost its profits.