Nintendo 3DS delay casts gloom over games giant

Nintendo's struggle to bring its hotly anticipated 3D-capable player to the market has sparked concerns over the outlook for the company, with sales of its existing products sliding in key US and European markets.

Nintendo shares fell more than 9 per cent on Thursday after the video game maker slashed its profit forecast for the year and said its new 3D-capable handheld player would miss the crucial year-end shopping season.



"We had been expecting a November launch for Japan, so the news was a disappointment," said Singapore-based analyst Atul Goyal of CLSA. "With a delayed product launch, the stock should be in a twilight zone, where it may not do much for the next five-to-six months."



Many analysts had factored in a 2011 launch for the United States, but were taken aback by the late Japan sales date, set for late February.



Nintendo blamed the strong yen and lack of hit software for its existing handheld DS and Wii home game consoles, as well as the late launch of the new product, for a downward revision to its profit forecasts.



The new Nintendo 3DS, boasting a display that can be used without special glasses, set gamers abuzz at the E3 gameshow earlier in the year and was seen as key to reviving the company's sagging sales.



Nintendo shares were down 9.3 per cent at 20,870 yen at 1:03 a.m. ET, heading for their biggest one-day drop in nearly 20 months. Volume spiked to 2.7 million shares, already 4 times the daily average over the past three months.



The stock fell as low as 20,770 yen, a level last seen in December 2009.



The launch delay will put the pre-holiday spotlight on rivals Sony Corp and Microsoft Corp, whose new motion-controlled gaming accessories will be in stores in time for the peak shopping season in all major markets.



Based on Thomson Reuters StarMine's Analysts Revision Model, a measure of change in analyst sentiment, Nintendo ranks in the bottom percentile, placing it below Sony and Microsoft.





Nintendo will not launch the new version of its DS until 26 February in Japan and March in the United States, by far the biggest market for the game machine maker.



Nintendo President Satoru Iwata blamed the delay on inability to meet anticipated demand within the year.



"They are struggling with product transitions," said Jay Defibaugh, a game sector analyst at MF Global in Tokyo.



"Those are struggles that will be ongoing for the next couple years for their Wii and 3DS, and I think that raises red flags among investors for the company's fundamentals over the medium term."

At 25,000 yen ($299), the new model is also priced substantially higher than existing DS models, raising some doubts about likely sales volumes.



Nintendo's Thursday stock tumble was an extension of a 3.7-percent fall on Wednesday in a late-day sell-off triggered by the announcement of the product delay in the last few minutes of trade.



Shares in Mitsumi Electric, a maker of parts for Nintendo games, also fell 6.1 percent to 1,295 yen on Thursday.

PROMOTED VIDEO
Life and Style
ebookNow available in paperback
ebooks
ebookPart of The Independent’s new eBook series The Great Composers
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Gadgets & Tech

    Ashdown Group: Moodle Developer (PHP ,Linux, Apache, MySQL, Moodle)

    £35000 - £45000 per annum: Ashdown Group: Moodle Developer (PHP ,Linux, Apache...

    Recruitment Genius: Web Developer

    £17000 - £30000 per annum: Recruitment Genius: This is a fantastic opportunity...

    Recruitment Genius: Junior .NET Web Developer - Winform / MVC

    £21000 - £26000 per annum: Recruitment Genius: This Award-winning pharma softw...

    Recruitment Genius: Senior Java Developer

    £30000 - £45000 per annum: Recruitment Genius: A Senior Java Developer is requ...

    Day In a Page

    Aren’t you glad you didn’t say that? The worst wince-and-look-away quotes of the year

    Aren’t you glad you didn’t say that?

    The worst wince-and-look-away quotes of the year
    Hollande's vanity project is on a high-speed track to the middle of nowhere

    Vanity project on a high-speed track to nowhere

    France’s TGV network has become mired in controversy
    Sports Quiz of the Year

    Sports Quiz of the Year

    So, how closely were you paying attention during 2014?
    Alexander Armstrong on insulting Mary Berry, his love of 'Bargain Hunt', and life as a llama farmer

    Alexander Armstrong on insulting Mary Berry and his love of 'Bargain Hunt'

    From Armstrong and Miller to Pointless
    Sanchez helps Gunners hold on after Giroud's moment of madness

    Sanchez helps Gunners hold on

    Olivier Giroud's moment of madness nearly costs them
    A Christmas without hope: Fears grow in Gaza that the conflict with Israel will soon reignite

    Christmas without hope

    Gaza fears grow that conflict with Israel will soon reignite
    After 150 years, you can finally visit the grisliest museum in the country

    The 'Black Museum'

    After 150 years, you can finally visit Britain's grisliest museum
    No ho-ho-hos with Nick Frost's badass Santa

    No ho-ho-hos with Nick Frost's badass Santa

    Doctor Who Christmas Special TV review
    Chilly Christmas: Swimmers take festive dip for charity

    Chilly Christmas

    Swimmers dive into freezing British waters for charity
    Veterans' hostel 'overwhelmed by kindness' for festive dinner

    Homeless Veterans appeal

    In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
    Isis in Iraq: Yazidi girls killing themselves to escape rape and imprisonment by militants

    'Jilan killed herself in the bathroom. She cut her wrists and hanged herself'

    Yazidi girls killing themselves to escape rape and imprisonment
    Ed Balls interview: 'If I think about the deficit when I'm playing the piano, it all goes wrong'

    Ed Balls interview

    'If I think about the deficit when I'm playing the piano, it all goes wrong'
    He's behind you, dude!

    US stars in UK panto

    From David Hasselhoff to Jerry Hall
    Grace Dent's Christmas Quiz: What are you – a festive curmudgeon or top of the tree?

    Grace Dent's Christmas Quiz

    What are you – a festive curmudgeon or top of the tree?
    Nasa planning to build cloud cities in airships above Venus

    Nasa planning to build cloud cities in airships above Venus

    Planet’s surface is inhospitable to humans but 30 miles above it is almost perfect