Nintendo can't catch a break. After announcing dismal Wii U sales and diminished financial projections today, shares of the Tokyo game giant have plunged more than 15 percent. The company is currently trading down more than 17 percent to $14.90.
It may not only be the downwardly revised sales projections for the Wii U and 3DS that has investors spooked. President Satoru Iwata said today said the company is considering orienting itself around a "new business structure" that could involve a greater emphasis on smartphones.
Nintendo today slashed its Wii U sales forecast for the period ending March 31, 2014 to 2.8 million consoles, down from 9 million, representing a decrease of almost 70 percent. 3DS sales projections for the same period fell from 18 million to 13.5 million.
Finally, Nintendo said it now expects to post a loss of ¥25 billion ($240 million) for the year, compared to a previous forecast for a profit of ¥55 billion ($527 million). If Nintendo does end up in the red, it will mark the company's third straight annual loss.
Despite the poor performance, Iwata will not resign as Nintendo's top executive.