Slow Wii U sales send Nintendo shares into a downward spiral
After announcing a 69 percent estimated drop in its console sales, the gaming company's share prices also appear to be declining.
Nintendo's forecast doesn't appear to be looking up since the company's announcement of its sluggish Wii U sales on Friday. Shares in the gaming company have plummeted 10 percent in Japan over the last two days.
Trading on Monday in Japan quoted Nintendo's stock at 13,145 yen ($126) down from 14,645 yen ($140) on Friday, according to Reuters. This is far below the company's record high stocks in 2007 that saw share prices at 73,200 yen ($704).
Nintendo announced on Friday that it has revised its Wii U sales expectations from an anticipated 9 million units sold between April 2013 and March 2014 to 2.8 million units during that period -- a 69 percent drop compared with previous estimates. The cuts also apply to Wii U software sales with Nintendo now saying that it expects to sell 19 million units, rather than the 38 million it initially expected.
The gaming company has also been forced to revise its financials. Nintendo said Friday that it will lose 35 billion yen ($336 million), while previously it had hoped to generate a 100 billion yen profit ($961 million). This will be the third year in a row that the company is posting a loss, according to Reuters.
Over the past couple of years, Nintendo has been hit with stiff competition from other console makes, such as Microsoft with its Xbox One and Sony with its PlayStation 4.
Both Microsoft and Sony have branched out from solely gaming to also focus on making their consoles the entertainment hub of users' living rooms. Nintendo, on the other hand, has been slow to integrate television capabilities into the Wii U.