Nintendo has widened its net loss forecasts for the running fiscal by more than threefold despite the fact that it managed to have a very healthy holiday season in terms of sales of 3DS and Wii.
With this announcement made, the projected net loss figure for the fiscal has climbed up all the way to 65 billion yen, or $838 million - significantly higher than the previous expectation of 20 billion yen.
Satoru Iwata - Nintendo's president has stated that despite introducing a 40 per cent price cut in the 3DS a year ago, he expects no more than 14 million units of the device sold during the fiscal - almost 12.5 per cent lower than what was being expected earlier at 16 million.
"The company faces a structural problem that people are opting for their smartphones and tablet PCs to kill their time," Mitsushige Akino, who oversees about $600 million at Ichiyoshi Investment Management Co. in Tokyo, explained, Business Week reports.
"I can't see Nintendo's next strategy. There will probably be a discussion about how much worse it can get," Akino added.
Nintendo is yet to recover from the massive 56 per cent drop in its shares last year, which eventually resulted in the company's market value declining by almost $24 billion.