Game maker Nintendo has seen profits fall by half over the last year as a result of a strong yen and lacklustre sales of its GameCube console.
Nintendo plans a new way of playing games
However, the firm plans to launch a successor to GameCube in 2005 and predicted profits will rise 3% in 2004.
"We want to offer new ways of game playing," a Nintendo official told correspondents on Thursday.
Net profits in the firm totalled 33bn yen ($300m; £162m) over the past year, down from 67bn yen for 2002/03.
The strengthening of the yen resulted in a loss of 67.8bn yen, Nintendo said.
Sales abroad accounted for three quarters of total revenue while sales in the US showed signs of declining.
The firm says details of the new game console - including its shape and price - have not been decided.
Sony Computer Entertainment, which makes PlayStation, and Microsoft, which is behind Xbox, have
already said they would introduce next-generation game consoles in 2005.
But is unlikely they will launch their models before Nintendo starts promoting its new design.