Shares in Nintendo have fallen 13% on the Tokyo stock exchange a day after the company became the latest technology company to report a loss in the first quarter.The shares closed down 13%, having fallen as much as 20%, on news of the worse-than-expected profits figures.
On Thursday, Nintendo reported a net loss of £201 million (25.5 billion yen) for the April-to-June quarter, its first-ever quarterly loss.
The company also cut its full-year profit forecast. Nintendo said it now expects a net profit of 20bn yen for the year to March 2012, down 82% from its previous projection.
Nintendo earnings were hit by weak sales of its new handheld 3DS console- in an attempt to boost sales the company has this month cut it’s prices.
The price in Japan will be about 40% less – retailing at 15,000 yen. In the US, the price will drop next month to $169.99 from $249.99.
However, analysts said the price cut may hurt the company’s earnings even further.
To make matters worse for the gaming giant, many say sales of the 3DS are unlikely to turn around anytime soon- as lack of new games is a big problem. Right now there are not many games available for the 3DS.
Smartphones continue to capture an increasing share of the gaming market as more people are preferring smartphones over specialised consols.