Nintendo shares drop 18% after forecasts are slashed

Nintendo shares drop 18% after forecasts are slashed
James Batchelor

By James Batchelor

January 20th 2014 at 10:53AM

Shares drop to less than 12,000 yen on Tokyo Stock Exchange

Shares in Wii U and 3DS firm Nintendo have fallen by as much as 18 per cent over the weekend.

The drop follows the platform holder's financial report on Friday that revealed Nintendo is likely to make an operating loss of 35 billion yen (£205m) for the fiscal year ending March 31st, 2014. It had originally forecast a profit of 100 billion yen.

The report also slashed sales forecasts for troubled console Wii U from 9m to 2.8m for the same period. The weaker-than-expected performance for the console has been blamed for Nintendo's financial shortcomings.

Following this news, the company's shares dropped to as low as 11,935 yen on the Tokyo Stock Exchange, according to the BBC.

The slashing of Nintendo's forecasts has once again prompted analysts into predicting the company's move into markets beyond its own platforms.

Analysts of Jeffries wrote: "[Nintendo's] console-based business model spells doom for stakeholders. It has no choice but to accept the change. We believe Mario on mobile is coming."