12:08 20 January 2014
On Friday, gaming giant Nintendo issued a profits warning saying that it will make an operating loss of £205m. Following the announcement, its share nosedived by as much as 18per cent on Monday.
Initially, it forecasted an operating profit of 100bn yen for the period but this has since been revised.
The lower-than-expected profit is blamed on weak Wii U console sales during the holiday season. Based on forecast, the company only sold 2.8 million units, which is 70per cent less than the initial forecasted sales of nine million. In addition, it also reduced the sales forecast for its 3DS console from 18 million to 13.5 million units.
Nintendo, which is the maker of world famous titles Super Mario and Donkey Kong, experienced global success when it first released its original Wii game console.
During this time, the company’s share reached record high in 2007. However, in July last year, UK supermarket chain Asda said it would no longer sell Wii U in its store. The stiff competition from rival console makers, which include Xbox One and PlayStation 4 added to the downfall.
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