Nintendo stock tumbles amid pressure to exit hardware on Wii U failure
The Nintendo stock recently witnessed a plunge after the company reported disappointing sales of its Wii U console; and even projected that it will likely report an unexpected operating loss for the year ending in March 2014.
With the disappointing Wii U sales bringing Nintendo under immense pressure to mull over the proposition of withdrawing from the video-game hardware industry, the company's stock recently tumbled 12 percent - to 12,885 yen - in Tokyo trading. The fall in the Nintendo stock marked the biggest intraday drop for the company since July 2011.
The disastrous sales performance of Nintendo's November 2012-launched Wii U gaming console was apparently an upshot of the fact that there were delays in the company's own titles for the console. With the Wii U having failed in the marketplace, its higher-margin software sales are also being dragged down.
Owing to the Wii U's disappointing sales, Nintendo has slashed its projections for annual sales of Wii U by more than two-thirds. In addition, a January 17 forecast by Nintendo has revealed that the company is heading towards an operating loss for the year ending in March.
While Nintendo had previously forecast that it will likely report a 100 billion-yen ($959 million) operating profit for the fiscal year ending in March, the company has now forecast a 35 billion-yen operating loss.