And the title tells you everything you wish wasn’t true. The recent news, shared with you last week, that Nintendo expects to sell fewer consoles this year (both handheld and the Wii U) and is planning for a loss for the year ahead, has caused a dramatic drop in share prices.
This isn’t a surprise, as this is the sort of thing that tends to happen after a severe announcement like that one, but investors are certainly shaken by the extremely poor outlook for the months ahead. The operating loss Nintendo predicts, remember, is ¥35 billion ($335 million). And this is after a prediction last year of 2014 bringing them a ¥100 billion in profit.
So, Nintendo’s shares plummeted to ¥11,935 on the Tokyo Stock Exchange. It did rise slightly by the end of the day, but at ¥13,745… that’s still $1.2 billion gone from the company’s value.
That definitely hurts.
