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TOKYO – Japanese game-maker Nintendo suffered its first drop in annual profit in six years, hit by a price cut for the Wii home console and sliding global sales.

The maker of Super Mario and Pokemon games said Thursday that net profit for the fiscal year ended March 31 fell 18 percent to 228.6 billion yen ($2.5 billion).

Kyoto-based Nintendo Co., which does not break down quarterly numbers, said annual sales slipped 22 percent to 1.434 trillion yen ($15.4 billion).

Nintendo is expecting tough times to continue. It forecasts sales to fall 2.4 percent to 1.4 trillion yen ($15 billion) for the fiscal year through March 2011 and expects earnings to slide 12.5 percent to 200 billion yen ($2.2 billion).

But the company expressed confidence in the popularity of its game machines. It is banking on a handheld that allows for 3-D games without the need for special glasses and which is set to go on sale this fiscal year.

Nintendo is facing intense competition from Microsoft Corp. with its Xbox 360 and Japanese rival Sony Corp., which makes the PlayStation 3. Both are also bringing 3-D gaming to their home consoles although those games require special glasses.

Nintendo's handheld may also face a challenge from smartphones like the iPhone, which are increasingly popular and offer games and other entertainment content.

Company officials have repeatedly shrugged off such concerns, including new fears about the threat from the iPad, saying that they know the game business, and appeal to a wide range of players, including the elderly, and both men and women.