Nintendo stock falls after games firm issues 2013 profit warning

 
Oliver Smith
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NINTENDO’S share price closed down 6.2 per cent yesterday, a substantial recovery from its opening fall of 19 per cent, following the company’s warning that it expects to make an operating loss of ¥35bn (£205m) in its 2013 financial year.

The gaming company responsible for some of the most popular game franchises of all time, including Mario and Zelda, had originally predicted an operating profit of ¥100bn for the year, but last week cut sales predictions for its Wii U console by two thirds and Nintendo 3DS handheld by 25 per cent.

“It’s right to question whether Nintendo should continue to use the same model of selling a console for ¥20,000 to ¥30,000 and games for several thousand yen each, and so if you ask if we are thinking about a new business structure, the answer is yes,” Nintendo chief executive Satoru Iwata told reporters in Osaka on Friday after the trading forecast.

Nintendo plans to unveil a new management strategy on 30 January following its quarterly results.