Nintendo Blues

The Big N is now facing a not-so-prospective future with a slew of bad news. Following the recently announced price cut for the 3DS (great for us!), Nintendo made a series of other announcements that have not been a bolster to investor confidence.

After announcing the Wii U, investors came out unimpressed with the presentation and vented their feelings by making Nintendo’s stock price fall nearly 6%. The trend continues this week as Nintendo has completely destroyed their profit forecast by slashing it a staggering 82%, following disappointing 3DS sales and slowing Wii growth.

Investors were keen to take note and forced Nintendo’s stock to plunge almost 13%, putting the stock value at its lowest point in five years. The cut was so drastic that Bloomberg has estimated that former Nintendo president and largest shareholder, Hiroshi Yamauchi, lost more than $300 million in a single day.

The company has already announced plans to turn the situation around with the previously shown 3DS price cut along with a number of executive pay-cuts. Current Nintendo president, Satoru Iwata, will have his salary cut by 50%, while other top executives will also face similar cuts at around 30% to 40%.

The house of Mario is crysis folks, we can only hope they’ve outsourced enough processing power from AMD to get themselves out of this mess.

That was lame, I know.

Nintendo Life