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."

Posted:
Related Forum: Gaming Discussion

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

Comments

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

If you would like to post a comment please signin to your account or register for an account.

d3_AtmosPosted:

I'd feel bad for them if they didn't ship a sub-par "Next gen" console that cant seem to run any game well :|

MoBoPosted:

Craigyy
Looped
daRealRush It would be great if Mario, was to move to smartphones!


If Mario switches to smart phones the amount of money they will make from that is unreal. They should really consider that move...


They should yeah, they'd make hella money off of phone. Pitch that idea to them and ask for a percentage.


I'll throw a brick through their window with a note on.

MoBoPosted:

Craigyy
Looped
daRealRush It would be great if Mario, was to move to smartphones!


If Mario switches to smart phones the amount of money they will make from that is unreal. They should really consider that move...


They should yeah, they'd make hella money off of phone. Pitch that idea to them and ask for a percentage.


I might have to.. 0.o Good idea.

CraigPosted:

Looped
daRealRush It would be great if Mario, was to move to smartphones!


If Mario switches to smart phones the amount of money they will make from that is unreal. They should really consider that move...


They should yeah, they'd make hella money off of phone. Pitch that idea to them and ask for a percentage.

CraigPosted:

Project-Gamers haha nintendo wii are krap anyway


If you had the money that company has, you wouldn't bo complaining. And don't forget, they practically put gaming on the map.

MoBoPosted:

daRealRush It would be great if Mario, was to move to smartphones!


If Mario switches to smart phones the amount of money they will make from that is unreal. They should really consider that move...

Project-GamersPosted:

haha nintendo wii are krap anyway

Scared_of_WaterPosted:

Australians
TCW
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. :)


I do haha, I just still can't believe they originally made cards lol :P


They were a cab services too

AustraliansPosted:

TCW
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. :)


I do haha, I just still can't believe they originally made cards lol :P

AustraliansPosted:

Gesture I think this would be a good idea:)


What would be a good idea lol?