Financial News

Nintendo shares slip on the Osaka stock exchange

27/01/2012

Nintendo stocks fell in Osaka

Nintendo share prices fell on the Osaka Securities Exchange after the computer entertainment manufacturer reported a sharp drop in quarterly profits.

As of 9:18 GMT, Nintendo equities had fallen 4.09 per cent on the Osaka exchange, after the company confirmed a larger-than-expected annual loss.

The company cut its profit expectations for the third time in six months as Nintendo suffered from a consumer focus shift toward iPhones and iPads.

Third-quarter operating profit dropped 61 per cent to 40.9 billion yen, with an operating loss of 45 billion yen set for the end of the financial year to March 31st.

This was some way above the average forecast of a 4.2 billion yen loss.

The 3DS handheld games suffered most as full-year sales forecast for the console were cut to 14 million from 16 million, despite a price reduction last August.

Despite the set back, Nintendo president Satoru Iwata remained confident that there was still room in the market for handheld game devices

"Nintendo is facing its worst results since it entered the games business," he told an Analysts meeting.

"What matters now is how Nintendo can make a profit from next year onwards, even under these harsh conditions."

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