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Slow-to-adapt Nintendo reeling in the smartphone era

Nintendo President Satoru Iwata, right, on Jan. 17 announced the company's downgraded earnings forecasts for the year through March.

OSAKA -- Nintendo, once a tireless profit machine, appears to be drifting into a morass of losses. Observers say the video game giant has lost its innovative edge and failed to adapt to the changing reality of gaming. 

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