Nintendo's stock plunges on poor financial results

Nintendo's stock price plunged by as much as 20 percent earlier today after the console game publisher announced poor financial results on Thursday. Bloomberg reports that Nintendo's stock price drop was the worst in 20 years. Another Bloomberg report says that Hiroshi Yamauchi, the former president of Nintendo, saw the wealth of his own Nintendo stock go down as much as $300 million today as a result of the price drop.

Investors are pulling out of Nintendo after the company announced on Thursday that it has cut its profit forecast for its current fiscal year to just 20 billion yen ($257 million) an 82 percent decrease from the company's previous profit predictions of 110 billion yen ($1.41 billion). Part of the reason for the huge profit cut is the price reduction announced for the Nintendo 3DS portable console. Nintendo revealed on Thursday the console's price will be cut in the US from $249.99 to just $169.99 beginning on August 12. The price cut comes after Nintendo admitted it had only sold 830,000 units of the console in the US since its launch last March. People who buy the Nintendo 3DS before August 12 will be compensated via downloads of 20 free games.

For the quarter that ended on June 30, Nintendo recorded revenues of 93 billion yen ($1.2 billion) which is about half what the company recorded in revenue for the same period a year ago. Nintendo recorded a net loss of 26 billion yen ($334 million) for the quarter.

Report a problem with article
Previous Story

Minecraft now part of Humble Indie Bundle 3 ... sort of

Next Story

Giveaway: Google Music Beta invites

30 Comments

Commenting is disabled on this article.

Wow, I got to thanks Neowin, I almost bought a 3DS last week, but I stopped myself from doing it when Amazon pulle it off. Now I'm more than glad to know that with 210 US I'll be able to pull off Zelda and the new Device...

Anyone know what Nintendo's ticker symbol is? I'm never able to find it on Yahoo! Finance. There's a bunch of NTO.<something> symbols, but which one is the main stock?

FMH said,
Sad. A lot of people have spent their childhoods with their products.

and their innovation is stuck in our childhood era...

I really don't think Nintendo has a market any more. People want more than just some old platform titles that, mind you, were once VERY successful, but are constantly refreshed to milk the franchises over and over.....I do love the Nintendo world (no pun intended) but frankly if I want to play Mario brothers I can do so on an NES, SNES, GameBoy, DS, 3DS GameCube, and Wii. I have Super Mario Bros for Wii and it is awesome but they need to add things to their consoles like video chat, an Xbox Live or PSN type service etc. Nintendo game quality is great but the consoles haven't evolved much over the last generations. A lot of people bash Nintendo consoles because they play games like Call of Duty or Red Steel or Dirt 3 on a console that is just not designed for that kind of game. So of course developers have to take out most of the eye-candying modules such as anti-aliasing and anistrophic filtering etc so the console can run it. It isn't fair to judge a Nintendo console based on those games.

Nitendo simply doesn't have the money to compete. That's all.

Everything NIntendo will do MS will do it bigger and will sell it at such a low price it will be impossible for NIntendo to compete.

This is what MS did woth the original xbox. At first the cube was more popular. I think the cube has been more popular for like 3 months after the release. Then MS cut the price, re-design the controller, bundle 2 3rd party games by Sega, lose A LOT OF money and boom no moe cube.

Iwata understood that very well. He tried things. Failed. The rest will be history one day Nintendo will be sold and become a brand name like Atari.

They simply don't have the money to compete with such giants as MS and Sony and this market is not enough big for 3 players.

It pleases me greatly seeing Nintendo suffer. These gimmicky crap things they are producing has been doing nothing but misleading the entire industry into believing the idea that motion gaming ever had a future... When in reality 90% of people are sitting on the couch, draping their arms to the side while they play their Wii, and completely misusing the "technology" from it's original terrible intentions.

Because the future of gaming is going to be a two handed controller with 2 analog sticks, 2 "bumpers" 2 triggers, 4 face buttons, and a dpad for the rest of time.

The future is going to be grand and will boggle the mind for years to come.

Joseph B said,
When in reality 90% of people are sitting on the couch, draping their arms to the side while they play their Wii, and completely misusing the "technology" from it's original terrible intentions.

This is true. I have many friends whose children play the games exactly like that with a mitful of dunut in the other hand.

Joseph B said,
It pleases me greatly seeing Nintendo suffer. These gimmicky crap things they are producing has been doing nothing but misleading the entire industry into believing the idea that motion gaming ever had a future... When in reality 90% of people are sitting on the couch, draping their arms to the side while they play their Wii, and completely misusing the "technology" from it's original terrible intentions.

Why all the Nintendo hate? If you don't like what they've got to offer then don't support then. I've got an smartphone, but don't own an iPhone. It's not my thing and I don't plan on buying one. I'm not making comments that I hope to see Apple fail though. I hope Apple, Google, Android, RIM and Microsoft all make a space for themselves in the market. More competition is a good thing.

dagamer34 said,
Nintendo went after the big pie with casual gamers and now they are getting bitten because Apple has them now.

I agree. They don't seem to acknowledge that smartphone gaming is a huge threat to them. They need to do something to address the issue. I'd love to see a Nintendo phone that could play their games.

With the recent price drop I think Nintendo will do better with younger kids. Most parents aren't going to buy their 5 year old an iPhone, but a cheap handheld is a good choice. If I was a parent I'd rather pay $80 for a used DS than spend $250 and worry about the kid breaking the system.

A truly dreadful idea for a console has done this (Wii-U). The 3D gimmick is not really up to par yet and I have turned the 3D off almost immeadiately which renders the device effectively a slightly better DS lite. Too many early bets IMHO.

Sony and Microsoft are biding their time. Probably because where they want to go has probably recently been decided. Kinda glad they've had a bit of a slap though because I really don't get the premise for the new console.The wii worked because it was elegant and simple.

tl;dr: Saw this coming. Are Nintendo scraping the bottom of the barrel for ideas now?

Alansonit said,
A truly dreadful idea for a console has done this (Wii-U). The 3D gimmick is not really up to par yet and I have turned the 3D off almost immeadiately which renders the device effectively a slightly better DS lite. Too many early bets IMHO.

Sony and Microsoft are biding their time. Probably because where they want to go has probably recently been decided. Kinda glad they've had a bit of a slap though because I really don't get the premise for the new console.The wii worked because it was elegant and simple.

tl;dr: Saw this coming. Are Nintendo scraping the bottom of the barrel for ideas now?


I'm glad Nintendo is in the gaming space. People call their technology gimmicky, but they've pioneered the gaming space for years. They're contributions lead to the widespread use of rumble support, the analog stick, motion controls and 3D gaming. Not a bad track record. Heck them screwing Sony back in the SNES days lead to the PlayStation brand. If they didn't do what they did we probably wouldn't see Sony in the hardware space today.

On the console side Kinect's motion controls (and lower prices) are responsible for the revived interest in the Xbox 360. Nintendo was on to something with the Wii and I think they're onto something with the 3DS. Granted 3D really isn't needed and it's tough for them to market, but they're atleast pushing the envelope. Graphics don't compare to the DS Lite by the way. There's a higher resolution and the polygons aren't blocky and pixelated. If you were Nintendo what would you have done with the next generation of hardware? Add more buttons and get photorealistic graphics with 24 hours of battery life? Nintendo has always said they're not in the graphics arms race and only comes out with a new console when they can't do something on the current console.

all it needs to get the profits up is to release a new Mario game every mouth

Mario fishing
Mario politics
Mario train spotting
Mario cheese rolling
Mario of duty

DrakeN2k said,
all it needs to get the profits up is to release a new Mario game every mouth

Mario fishing
Mario politics
Mario train spotting
Mario cheese rolling
Mario of duty


Call of Mario
Battlefield: Mario
World of Mario

I don't think many care about the 3D gimmick and more games are needed. People don't see a reason to buy it. They dumped the Wii. The Wii U could be in for some trouble. I doubt you are going to get many non gaming Wii owners to buy another expensive toy that does much the same thing albeit with a new huge controller.

Fool me once for core gamers. Yet to see what Sony and MS will do next gen. Cheaper games on mobiles over high price games near the level of consoles, that's a problem for the Vita too. Online still doesn't seem to interest them. Nintendo could be really screwed over the next few years if competition doesn't hold back.

3d gimmick you got the be kidding me. 3d is the future. Like it or not.

Technology might not be ready but 3d without glasses is where video game and TV is going. No doubt about it. People said the same thing about the touchscreen. Today touchscreen and portable gaming is one.

Nah. 3D for a portable gaming console is pretty gimmicky. Check those sales. You don't just drop the price ~$80 so close to its original launch if it was selling well. Maybe the future for video recording and movie watching, but it will be awhile until everyone actually wants it.

KSib said,
Nah. 3D for a portable gaming console is pretty gimmicky. Check those sales. You don't just drop the price ~$80 so close to its original launch if it was selling well. Maybe the future for video recording and movie watching, but it will be awhile until everyone actually wants it.

When it doesn't get tiresome to use it...

It all comes down to customers vs investors. Whats good for customers is not always good for investors.

The price cut will help with a lot of sales but hurt short terms profits. Investors want huge profits all the time.

Of course this will spur the nintendo is doomed comments. Same things were said when the ds was just released.

majortom1981 said,
It all comes down to customers vs investors. Whats good for customers is not always good for investors.

The price cut will help with a lot of sales but hurt short terms profits. Investors want huge profits all the time.

Of course this will spur the nintendo is doomed comments. Same things were said when the ds was just released.

Public trading during the last 20 years has done more harm to companies than can be imagined. My favorite is the hedge fund investor that had a majority share of Tim Horton's and a share in Wendy's. As Tim Hortons was dying, they pushed Wendy's to buy them, Wendy's took a huge hit, but made them profitable. Then the hedge fund pushed to spin the off so they got all their value back. Synergies to buy, synergies to sell, it is all a damned shell game.