Nintendo Co. (7974) President Satoru Iwata said the maker of video-game machines is considering a new business model after forecasting a surprise 25 billion-yen ($240 million) annual loss because of tepid demand for the Wii U. 
 
 Nintendo fell the most in more than 12 years in the U.S. yesterday. The company had previously projected profit of 55 billion yen for the year ending March as it counted on Christmas shoppers to revive sales of the Wii U console featuring games with iconic characters Mario and Zelda. The company that got its start making playing cards more than a century ago slashed its global Wii U sales forecast for the year to March 31 by almost 70 percent to 2.8 million units. The latest warning comes just three months after the Japanese company reiterated its sales projections for the Wii U, counting on the console to revive its fortunes as Microsoft released its new XBox One and Sony released its PlayStation 4 to the public. Close Attendees use the Nintendo Co. Wii U console at the E3 Expo in Los Angeles. Nintendo shares have fallen almost 10 percent since hitting a two-and-a-half year high of 15,880 yen on January 10. Nintendo this business year now expects an operating loss of 35 billion yen ($335.76 million) compared with an initial forecast for a 100 billion yen profit. Projections for sales of its handheld 3DS player were cut to 13.5 million units from 18 million, and for sales of 3DS games to 66 million units from 80 million. Nintendo posted a quarterly loss of 8 billion yen in October after cutting the price of the console in the face of new machines from Sony Corp. (6758) and Microsoft Corp. Iwata is trying to lure consumers who prefer playing games on mobile devices from Apple Inc. and Samsung Electronics Co. (005930) 
 
 More Pressure 
 
 “The video-game market has moved into smartphones and tablets,” said Mitsushige Akino, chief fund manager at Ichiyoshi Asset Management Co. in Tokyo. "There will be no major management shake-up in the short term," Iwata told reporters. Lower Dividend 
 
 The company reduced its planned dividend for the fiscal year to 100 yen from 260 yen. Mobile games are the fastest-growing segment, with revenue set to reach $22 billion by 2015 from $13.2 billion this year, Gartner said.
– Nintendo's console business might be on its last life. The company today slashed its Wii U sales forecast for the year ending in March by a staggering 70%, anticipating sales of just 2.8 million units, Reuters reports. It also halved its projection for Wii U game sales to 19 million units, and dropped its 3DS forecast from 18 million to 13.5 million. The numbers are especially bad, because the second year of sales is typically a peak period for consoles, the Wall Street Journal points out. "We are thinking about a new business structure," President Satoru Iwata said in an apologetic news conference, according to Bloomberg. He said the company wanted to take advantage of mobile gaming, but "it's not as simple as enabling Mario to move on a smartphone." Some analysts say the company is investing heavily in research and development, and could even have a new console in the works. Despite losing money for now three years in a row, the company is sitting on $4.44 billion in cash.