This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-25805136
The article has changed 3 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
Nintendo shares plunge 18% on loss warning | Nintendo shares plunge 18% on loss warning |
(about 4 hours later) | |
Shares of Japan's Nintendo plunged as much as 18% on Monday after the gaming giant issued a profit warning. | |
On Friday, Nintendo said it expects to make an operating loss of 35bn yen ($335m; £205m) for the financial year ending 31 March 2014. | On Friday, Nintendo said it expects to make an operating loss of 35bn yen ($335m; £205m) for the financial year ending 31 March 2014. |
It had initially forecast an operating profit of 100bn yen for the period. | It had initially forecast an operating profit of 100bn yen for the period. |
The company blamed weaker-than-expected sales of its Wii U console during the holiday season for the downgrade in its earnings forecast. | The company blamed weaker-than-expected sales of its Wii U console during the holiday season for the downgrade in its earnings forecast. |
As a result, it lowered its global Wii U sales forecast for the business year from nine million to 2.8 million units - a cut of nearly 70%. | As a result, it lowered its global Wii U sales forecast for the business year from nine million to 2.8 million units - a cut of nearly 70%. |
Nintendo also reduced the sales forecast for its 3DS console from 18 million to 13.5 million units. | Nintendo also reduced the sales forecast for its 3DS console from 18 million to 13.5 million units. |
The firm's shares fell to as low as 11,935 yen on the Tokyo Stock Exchange on Monday. | The firm's shares fell to as low as 11,935 yen on the Tokyo Stock Exchange on Monday. |
Mario on mobile? | |
The maker of Super Mario and Donkey Kong had previously hoped to match the global success of its original Wii game console which helped raise the firm's shares to a record high in 2007. | |
The company had, till three months ago, backed its initial forecasts for Wii U sales despite setbacks in markets such as the UK. | |
In July last year, UK supermarket chain Asda said it would no longer be selling the Wii U in its stores. | |
But the gaming giant has faced stiff competition from rival console makers including Microsoft with its new Xbox One, and Sony with its new PlayStation 4. | |
At the same time, some console makers are moving towards allowing users to play their games without the need to own a console. | |
Earlier this month, Sony announced plans to make its games available over a variety of devices, including its smart TVs as well as other third-party products. | |
Analysts said that given these factors, Nintendo - which has so far not allowed its games to be played on tablets or other mobile devices, needed to re-evaluate its strategy. | |
"Its console-based business model spells doom for stakeholders," analysts at Jefferies wrote in a note. "It has no choice but to accept the change." | |
"We believe Mario on mobile is coming." |