Nintendo stayed deep in the red in the latest quarter, forcing the Japanese video game giant to slash prices on its new 3DS handheld device. Nintendo posted a net loss of 25.5 billion yen ($324 million) in the April-June period, worse than the 25.2 billion yen loss a year earlier. For the fiscal year through March 2012, Nintendo expects net profit of 20 billion yen, down 82 percent from its previous outlook, on sales of 900 billion yen.

The company blamed its lackluster sales on a dearth of hit titles for the Wii and 3DS, as well as a strong yen.

Nintendo decided to drop prices just five months after it launched the 3-D version of its DS handheld device. The 3DS will cost 15,000 yen in Japan starting Aug. 11, down from 25,000 yen. In the U.S., the price drops to $169.99 from $249.99 on Aug. 12.

"Nintendo will be able to create momentum for the Nintendo 3DS and accelerate its market penetration toward the year-end sales season, when the lineup for the applicable software shall be enriched," the company said in a statement.

Nintendo plans to release the "Super Mario 3DLand" and the "Mario Kart 7" 3DS game titles in Nonember and December, respectively.