Nintendo has slashed its full-year profit forecasts by 82 per cent to 20 billion ($257 million), compared to its previous estimates of 110 billion.

The extreme cut follows continued disappointing sales of the 3DS handheld console, which for three months ended June 30 sold only 710,000 units worldwide.

The company has announced that it intends to cut the price of the 3DS in Japan, Europe and the US this August.

Net loss for the first quarter was 25.5 billion, with sales at 93.9 billion, down 50 per cent compared to 188.6 billion for the same period last year. The company blamed poor sales, exchange rates and research and development costs for the Wii U.

Aside from respectable sales of The Legend of Zelda: Ocarina of Time 3D, the company acknowledged "few other hit titles" for its new handheld. During the three month period, 4.53 million 3DS games were sold.

The DS series of handhelds sold 1.44 million units and 12.13 million games, while Wii hardware shifted another 1.56 million units and 13.44 million software titles.