A lack of new software has failed to attract gamers and other content producers to its Wii U device.
Nintendo hopes titles including Wii Fit U for the console and Animal Crossing: New Leaf - for its 3DS handheld player - will deflect a shift in gaming to smartphones and tablets. The company hopes to sell nine million Wii U units in the current business year.
Fortune Magazine claims that Nintendo has a lot to prove.
The company's last video game console, the Nintendo Wii, debuted in 2006 to a skeptical public and then went on to become the undisputed leader of its generation. The Wii sold nearly 100 million units worldwide - 20 million more than Microsoft's Xbox 360 or Sony's PlayStation 3. Now critics wonder if Nintendo can stay on top.
Last November, the company made its move to dominate a brand new console generation. The Nintendo Wii U beat competitors to stores by a full year. Microsoft's Xbox One and Sony's PlayStation 4 aren't due on shelves until Xmas this year. But did getting a head start on the competition give Nintendo a leg up, or doom the company to sell an ageing product against hotter, more high-tech competitors?
In Australia, the company's new Managing Director has no media presence, with the firm choosing to churn out product press releases over face-to-face interviews, following the resignation of former Managing Director Rose Lappin.
Yuji Bando, who joined Nintendo Australia direct from Japan, is struggling to compete in a market where consumers are moving away from Nintendo products for gaming on Android and Apple tablets.
Bando came to Australia from Nintendo Japan and has worked with Nintendo of America for eight years.
By comparison, Reggie Fils-Aime, who is president and chief operating officer of Nintendo of America, constantly conducts media interviews. His latest was a video chat with Fortune Magazine it can be seen here.