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.
Source:
Bloomberg
Nintendo Life
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Yeah, the Nintendo conference was a lackluster presentation, which showed only the controller of the system and what games may look like on the new platform. Also, the tech demo with the bird actually hurt them in the end since it was supposed to show its new capabilities over the 360 and PS3.
Personally, the WiiU could do without any touch device. All Nintendo has to do is focus on the hardware and third party titles and they are back in business. Additionally, talking about improved internet browsing and online features would also benefit the company. Nintendo should stop focusing on the controller and focus on the other aspects of the console that are going to make gamers actually want the system.
Yeah right now I feel the 3DS was the stupidest purchase I have made in my life. Other than Zelda.
Though I still hope Nintendo gets through this all right.
I can’t say that I’m surprised, as I was not at all impressed with the WiiU. I have always been a fan of Nintendo, and I hope that it succeeds, but unless they make some changes to the WiiU, or still have a surprise waiting for us, I fear that they will have a tough time for a while.
Now if they justrevealed information about the Smash Bros title for the WiiU…that would definitely get people more interested in it! 😆