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

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"Nintendo shares hit following loss warning" :: Login/Create an Account :: 90 comments

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CrownsPosted:

Lia
Looped They will still get a damn lot of sales, though. As we grow out of their products younger children will be buying the latest Nintendo item lie the Wii U or the latest DS. It is a never ending cycle.


What is keeping them running is the 3DS, it is outselling both the One and PS4.


I can see why though, the 3DS really is a great system.

DissPosted:

Looped They will still get a damn lot of sales, though. As we grow out of their products younger children will be buying the latest Nintendo item lie the Wii U or the latest DS. It is a never ending cycle.


What is keeping them running is the 3DS, it is outselling both the One and PS4.

MoBoPosted:

Bosmer I havnt played a Nintendo console in years, but I missed playing Mario on it when I was a kid..


Don't be ashamed to hop back on it :D I haven't played it for years, I think I mit have to 0.o

-DreamTeamPosted:

I havnt played a Nintendo console in years, but I missed playing Mario on it when I was a kid..

JokerPosted:

Let's hope they can rebound from this.

MoBoPosted:

They will still get a damn lot of sales, though. As we grow out of their products younger children will be buying the latest Nintendo item lie the Wii U or the latest DS. It is a never ending cycle.

SwiftPosted:

xDylan Their consoles can't even compete with MS and Sonys console. Oh well, bye bye Nitendo. Nobody wants you around anymore.


Maybe you wont buy their consoles or devices, but millions of people will. Thus they will continue.

TRSNPosted:

xDylan Their consoles can't even compete with MS and Sonys console. Oh well, bye bye Nitendo. Nobody wants you around anymore.


This is nowhere near the truth, lol.

xDylanPosted:

Their consoles can't even compete with MS and Sonys console. Oh well, bye bye Nitendo. Nobody wants you around anymore.

TRSNPosted:

iiExaMplezZz Its a shame to see Nintendo struggling like they are, but its no surprise that they are. They can't compete with Sony and Microsoft right now, both of their consoles are miles ahead of the Wii U (even the previous gen ones) and they haven't done anything substantial to change that. I hope they do pull back to where they used to be, but if they continue like this and Sony and Microsoft do the same, they might not be able to.


Nintendo isn't as innovative as Sony or Microsoft, who are newer companies.


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