Nintendo shares hit following loss warning
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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justahackerPosted:
DreamsDong The only reason they're staying alive right now is because of the handheld devices such as the 3DS.
even then its still not enough the 3ds is barely making them money
That's not true. The 3DS is dominating.
However the Wii U was worse than a flop; we actually need a new word to describe what it was. That's why the company is working on going belly-up.
I seriously doubt that a company like Nintendo is going to go under; all of the BIG companies tend to bounce back, like Apple when they came back in the 21st century with the iPod. They just need to draw up a good plan and do it fast, and here in the next few years during the current generation (XBONE & PS4) we can probably expect a new big console release from them, something radically different from the Wii / Wii U.
DreamsPosted:
Dong The only reason they're staying alive right now is because of the handheld devices such as the 3DS.
even then its still not enough the 3ds is barely making them money
DongPosted:
The only reason they're staying alive right now is because of the handheld devices such as the 3DS.
Martin_Luther_PingPosted:
Things aren't looking good for Nintendo. Hope they can pull themselves together. It would be sad to see the company that saved videogames close up shop.
KatsumiPosted:
Craigyy_Jr Well i thought they'd be fine but now that i hear this, i dont think they will
Hopefully they can see an upward trend some time in the future, i would hate to see this slump continue for Nintendo
TRSNPosted:
VPN There's a YouTube that actually invested in Nintendo and started throwing a tantrum.
I don't quite understand what you're saying.
TRSNPosted:
KatsumiDominating I only used there crap for Mario.
They also have some other great titles, most people are only interested in mario and pokemon though
This is true, and I don't understand why. Nintendo consoles and handheld consoles are a completely different experience than Playstation and Xbox and people don't like it.
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