Nintendo shares hit following loss warning

4.6
$1.2 billion wiped off company's value following weaker-than-expected sales

Nintendo shares fell as much as 18 per cent in Tokyo on Monday before regaining some of the losses to close down 6.2 per cent.

Investors were reacting negatively to Friday's announcement that Nintendo had slashed its annual Wii U sales forecast from 9 million to 2.8 million units, a dramatic reduction that will swing its full-year results from profit to loss.

Monday's share decline is the company's biggest drop since September and wipes $1.2 billion off its market value, Bloomberg reports.

Nintendo is doing plenty of soul-searching in light of its recent abject commercial performance.

"We cannot continue a business without winning," Nintendo president Satoru Iwata said on Friday. "We must take a sceptical approach whether we can still simply make game players, offer them in the same way as in the past for 20,000 yen or 30,000 yen, and sell titles for a couple of thousand yen each."

The executive, who has no plans to resign, also said: "We are thinking about a new business structure. Given the expansion of smart devices, we are naturally studying how smart devices can be used to grow the game-player business. It's not as simple as enabling Mario to move on a smartphone."

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Related Forum: Gaming Discussion

Source: http://www.computerandvideogames.com/445950/nintendo-shares-hit-following-loss-warning/

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-CPPosted:

Nintendo may just become a distant memory some day....

TRSNPosted:

Australians
TCW
Valor nintendo sucks so im not surprised at all xbox all the way


Nintendo was founded: September 23, 1889
Microsoft was founded: April 4, 1975
Sony was founded: May 7, 1946

Microsoft and Sony haven't been around nearly as long as Nintendo. And yes, Microsoft may have a HUGE market cap ($300 Billion), but they're very much more diverse than Sony ($19 Billion) and Nintendo ($20 Billion).

Nintendo has been around for THAT long, over 100 years, and still holds a market cap higher than most companies. Sony and Microsoft are innovating to the maximum, while Nintendo is just trying to keep up while still providing those who enjoy the "roots" of Nintendo for when they were a kid.

So no, they don't suck. They're just encountering a 'business bump', like most companies do every once in awhile.


You know, I am a big Nintendo fan, but I had no idea they were founded in 1889 xD


Well, you learn something new every day. :)

AustraliansPosted:

TCW
Valor nintendo sucks so im not surprised at all xbox all the way


Nintendo was founded: September 23, 1889
Microsoft was founded: April 4, 1975
Sony was founded: May 7, 1946

Microsoft and Sony haven't been around nearly as long as Nintendo. And yes, Microsoft may have a HUGE market cap ($300 Billion), but they're very much more diverse than Sony ($19 Billion) and Nintendo ($20 Billion).

Nintendo has been around for THAT long, over 100 years, and still holds a market cap higher than most companies. Sony and Microsoft are innovating to the maximum, while Nintendo is just trying to keep up while still providing those who enjoy the "roots" of Nintendo for when they were a kid.

So no, they don't suck. They're just encountering a 'business bump', like most companies do every once in awhile.


You know, I am a big Nintendo fan, but I had no idea they were founded in 1889 xD

TRSNPosted:

Valor nintendo sucks so im not surprised at all xbox all the way


Nintendo was founded: September 23, 1889
Microsoft was founded: April 4, 1975
Sony was founded: May 7, 1946

Microsoft and Sony haven't been around nearly as long as Nintendo. And yes, Microsoft may have a HUGE market cap ($300 Billion), but they're very much more diverse than Sony ($19 Billion) and Nintendo ($20 Billion).

Nintendo has been around for THAT long, over 100 years, and still holds a market cap higher than most companies. Sony and Microsoft are innovating to the maximum, while Nintendo is just trying to keep up while still providing those who enjoy the "roots" of Nintendo for when they were a kid.

So no, they don't suck. They're just encountering a 'business bump', like most companies do every once in awhile.

ValorPosted:

nintendo sucks so im not surprised at all xbox all the way

StedosPosted:

That's a really bad loss. Hope they will be able recover from it. If Nintendo are failing in Japan then that is a really big hit in their company since Japan is a big part of their sales/profit.

TRSNPosted:

If you're interested in looking at their stock news, and general information, here's their link.

https://www.google.com/finance?cid=685139

HonkPosted:

Australians Jesus, that's a big loss. I don't know how they will make it up Dx


Yah that actually is pretty bad.

TRSNPosted:

I misread that completely... I thought it said "Shares went down 18 cents." and thought, that isn't that bad? But then I reread, because why would they be reporting an 18 cent loss on a major company? Haha, 18% though, that's insane.

Sorry to Nintendo, they'll pop back up. They always do.

If you're interested in investing, I'd say invest in Nintendo. They'll pop back up and you can make some hefty cash off of them!

AustraliansPosted:

Jesus, that's a big loss. I don't know how they will make it up Dx


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