$1.2 Billion Wiped Off Nintendo's Market Value As Share Prices Plummet
Posted by Damien McFerran
Biggest decline since September
The recent news that Nintendo expects to sell less Wii U and 3DS consoles — as well as make a loss — has caused the company's share prices to drop dramatically.
Friday's announcement that Nintendo expects to make an operating loss of 35 billion Yen ($335 million / £205 million) this financial year — after previously predicting a profit of 100 billion Yen — has understandably shaken investors.
The other piece of bad news was a reduction in the proposed sales figures for Nintendo hardware; the company now expects to shift 2.8 million Wii U consoles and 13.5 million 3DS systems — a sharp drop on earlier projections.
Following the news, Nintendo's shares slumped to as low as 11,935 Yen on the Tokyo Stock Exchange. The dropped price eventually settled on 13,745 Yen, wiping $1.2 billion off the value of the company.