Arab Today, arab today shares in japan\s nintendo dive 18 after loss forecast
Last Updated : GMT 13:23:05
Arab Today, arab today
Arab Today, arab today

Shares in Japan\'s Nintendo dive 18% after loss forecast

Arab Today, arab today

Arab Today, arab today Shares in Japan\'s Nintendo dive 18% after loss forecast

Tokyo - AFP

Shares in Japan's Nintendo dived more than 18 percent Monday after the Japanese gaming giant warned it would slip back into the red on poor sales of its Wii U game console. The dramatic news, released after the Tokyo market closed Friday, highlighted a growing chasm between Nintendo and global rivals Sony and Microsoft, as well as the trio's battle against cheap -- or sometimes free -- downloadable games for smartphones and tablets. Nintendo shares dived 18.43 percent to 11,945 yen in opening trade, before recovering some ground to sit down 11.16 percent around 0225 GMT. The plunge marked Tokyo investors' first reaction to Kyoto-based Nintendo saying it would lose 25 billion yen ($240 million) in the fiscal year to March, reversing an earlier 55 billion yen net profit forecast. Nintendo, maker of the Donkey Kong and Super Mario brands, also warned that it expected to sell just 2.8 million units worldwide of the Wii U, less than a third of it earlier prediction for 9.0 million consoles -- and dealing a blow to high hopes it would match the blockbuster success of the original Wii. In contrast, Sony's PlayStation 4 and Microsoft's Xbox One have seen huge demand for their new consoles as the firms battle for control of a global sector worth about $44 billion annually. On Friday, Nintendo said its hopes that big holiday season demand would boost flagging Wii sales were dashed, forcing it to slash forecasts as demand for the console's high-margin software slumped, it said. For Nintendo, the grim forecast is especially disappointing after it scratched back to profitability last year thanks to a sharply weaker yen, which inflates Japanese firms' repatriated profits. "Investors had been praying for a strong recovery but what's obvious now is that the company is lagging behind," said Hirokazu Kabeya, senior strategist at Daiwa Securities. "Both the hardware and software businesses were bad. It was as if the company got a 'no' verdict on all aspects. "We should closely watch how the company will rehabilitate itself from here," he added. Nintendo has previously blamed weak earnings partly on high development and marketing costs for the Wii U, launched in late 2012, although sales of its 3DS handheld console and related game titles fared better. It cut prices on both consoles to boost sales. Nintendo President Satoru Iwata apologised to shareholders at a press briefing on Friday, saying that "my duty, more than anything else, is to revive our business momentum". The company is to hold a briefing about its new strategy on January 30. Nintendo's grim downgrade came as key domestic rival Sony saw record demand for its new PlayStation 4 console, which had already sold more than 4.2 million units by the start of the year. The console was launched on November 15. US rival Microsoft has also seen robust demand for its Xbox One console, which sold more than one million units in the 24 hours after its November release. The firms are giants in the global videogames industry, but they have faced tough economic conditions in the US and Europe, while also battling a move to smartphone games. "One smartphone does everything for many people and so they don't feel the need to have game consoles," Daiwa's Kabeya said. He added that Nintendo had plenty of cash on hand so its balance sheet was safe -- for now. But "its finances will become severer and severer if thing carry on like this". Shinkin Asset Management fund manager Naoki Fujiwara saw little hope for Nintendo after the Wii U failed to live up to expectations. "Growth is nowhere to be seen," he said. -- Dow Jones Newswires contributed to this article --

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today shares in japan\s nintendo dive 18 after loss forecast Arab Today, arab today shares in japan\s nintendo dive 18 after loss forecast

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today shares in japan\s nintendo dive 18 after loss forecast Arab Today, arab today shares in japan\s nintendo dive 18 after loss forecast

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Sheraton Grand Hotel reveals its deals

GMT 12:20 2017 Monday ,25 September

Sheraton Grand Hotel reveals its deals
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Iran blocks all Iraqi Kurdistan flights

GMT 13:07 2017 Monday ,25 September

Iran blocks all Iraqi Kurdistan flights
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Conditions growing dire    

GMT 09:22 2017 Monday ,25 September

Conditions growing dire    
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:11 2017 Saturday ,23 September

Doctor provides advices to families

GMT 11:11 2017 Sunday ,24 September

The dark side of new tourism hope

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday