Shares of Japanese gaming giant Nintendo fell by 10 per cent in Tokyo's stock exchange after the announcement yesterday by its CEO that its forthcoming 3DS gaming console would be delayed until February 2011 because of fears that there would not be enough stock to satisfy demand.
The drop wiped around 270bn Yen (roughly £2bn) off the market capitalisation of the company amidst concerns that Nintendo is not acting fast enough to counteract the growing threat of casual gaming platforms like the iPhone, the iPad, the iPod Touch and Android smartphones.
Nintendo also issued a statement saying that it expects its profits to dip by more than 50 per cent from $2.4bn to $1.08bn, a fall explained by the fact that the Japanese Yen is stronger than usual and sales of DS and Wii consoles are starting to suffer from the combined effect of the recession and competition from Microsoft and Sony.
Sales for the full year are expected to fall from 1.4 trillion yen to 1.1 trillion yen, roughly £8.3bn. This means that profitability at the company is expected to take a nosedive, from roughly 14 per cent approximately to 8.2 per cent.