Nintendo’s share prices have plummeted today removing $1.2 billion off its market value after the company slashed its forecast for Wii U global sales by almost 70 per cent on Friday. Nintendo was previously expected to post a predicted operating profit of 100 billion yen for the 2013-14 fiscal year, but as of Friday’s announcement, the company now expects to post an operating loss of 35 billion yen on March 31, 2014.
Nintendo’s shares rapidly declined following the announcements, with shares as low as 11,935 yen recorded at the Tokyo Stock Exchange. Bloomberg reports the company’s shares have since levelled to 13,745 yen, though it still serves as its biggest fall in Tokyo since September 9.
In light of Nintendo’s poor sales, CEO Satoru Iwata admitted he misread the US and European markets and is solely focused on restoring Nintendo’s business momentum with a new business structure. Though such plans have yet to be detailed, we will likely hear more of Nintendo’s new structure at the investor’s meeting on January 30.