Nintendo Stock Tumbles After Grim Sales Forecast

Wii U likely to sell less than a third of estimates, company admits

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The gaming giant responsible for the Super Mario Bros. and Tetris is facing some rough terrain, as grave loss estimates caused Nintendo’s stock to tumble Monday.

Nintendo forecasted an operating loss of $35 billion yen ($335.2 million) on Friday for the fiscal year ending in March, a big swing from the 100 billion-yen ($957.7 million) profit it had previously forecast, reports CNN. Meanwhile, the company dramatically reduced estimates for global sales of its Wii U console from 9 million to 2.8 million.

Shareholders quickly responded and the stock closed more than 6% lower Monday.

The company has resisted expanding into increasingly popular online gaming and entertainment-based features, and unlike its competitors Microsoft and Sony, Nintendo hasn’t pushed their gaming consoles into integrated computing devices.

[CNN]

1 comments
mrbomb13
mrbomb13

My, how the mighty have fallen...

Back in the late 1990s-early 00s, Nintendo was a video game POWERHOUSE.  It unquestionably beat every other competitor on the market - Sony's Playstation was a mediocre 2nd place, and Microsoft's XBox couldn't hold a candle in terms of popularity or sales.  I remember it was every kid's dream to get an N64/Game Boy/Game Boy Color to keep up with the seemingly inexhaustible choices of games out there. (don't forget about a Nintendo Power magazine subscription too!!).  Trips to EBX, eb Games, Gamestop, Software Etc. (etc.) were almost mandatory on any outing.

But, that was then, this is now.  Nintendo decided to 'sit on its laurels,' and look what's happened.  The video game market diversified, and the physical consoles had to compete with the myriad online games.  Suddenly, one did not have to spend hundreds of dollars on a console (and hundreds more on games); one could instead download and spend limitless hours in an online 'world.'  Honestly, Nintendo could never really keep up, and now Playstation & XBox are the favored consoles.  Both have successfully incorporated online play into their product/service offerings, and the ratings/revenues show it.

Unless Nintendo can debut an attractive alternative, it can expect to lose further market share, and its prestige/dominance will become nothing but a memory to those gamers in their 20s, 30s, and 40s.