Nintendo’s shares tumbled by nearly 18% after the Japanese videogame maker issued an operating loss forecast of $335m for the current fiscal.
The Japanese gaming major is also considering ending the production of video-game machines amid weaker-than-expected sales of its Wii U gaming console and the 3DS handheld during the holiday season.
Sales forecasts of Wii U across the globe slumped 70% for the business year from nine million to 2.8 million units, while sales of the 3DS console are anticipated to drop from 18 million to 13.5 million units.
The latest move underlined a growing gap between Nintendo and global rivals including Sony and Microsoft, in addition to the trio’s fight against inexpensive or at times free downloadable games for mobile devices.
However, the videogame maker had earlier supported its initial forecasts for Wii U sales in spite of obstacles in markets such as the UK.
Nintendo’s severe downgrade came as rivals Sony and Microsoft reported strong demand for their PlayStation 4 and Xbox One consoles respectively.
