Nintendo has brushed off suggestions its magic may be fading despite declining 

sales of the Wii console, as it prepares to unveil a hand held 3-D device it hopes

will drive a new gaming revolution. President Satoru Iwata remained tight lipped

about the much awaited gadget, tentatively known as the 3DS, only saying it will

offer a whole new gaming experience to players. He also shrugged off suggestions

that nintendo has passed the peak of its growth after the company announced

its first decline in annual profits in six years. Thursday on slowing sales on its Wii

and DS devices. The maker of the hit series Super Mario Bros saw net profit fall

18 percent in the year to March as it cut prices of the wii in response of competition

from Sony and Microsoft in the multibillion-dollar industry. Boasting total lifetime sales

of 70.93 million units, a record in the firms history, the Wii has easily out sold Sony

Playstation 3 and Microsoft Xbox 360 since its 2006 launch. However, analysts say that as the

impact of the Wii fades within a saturated market, Nintendos next move will determine

whether it still has the ability to lead the industry. "We believe that there is more room for

us to expandthe game playing population. We have to do our best, as an entertainment

business, so that we can keep offering good surprises to consumers," Iwata told a news

conference. "Obviously a game wont be fun only because its in 3D," he said

"This is still uncharted territory that requires us to experience more trials and errors."  The so called Nintendo 3DS will go on sale this

fiscal year, allowing users to see 3D images without the need for special glasses. It will be showcased at the E3 game trade show in

June in Los Angeles before its commercial launch. Iwatas remarks came a day after the Kyoto based company predicted net profit for

this year to March 2011 would fall 12.5 percent. Nintendo said it expects global sales of Wii consoles to fall to 18 million in fiscal year,

down from 20.5 million in fiscal 2009 and 26 million in fiscal 2008 "I think 18 million consoles is a fairly ambitious target, considering

it has only been four years since this device was originally launched," Iwata said " I am not pessimistic about the future. We only

realized that selling more in the current business environment will be difficult," he said. Iwata also said the new console will come with

tighter piracy controls, which he said is a growing problem in Asia and Europe. "What is worrying is that more and more people who

wouldnt have engaged in these acts before are doing it without hesitation," he said, "What worries us is that people are finding no

value in paying for software."