Nintendo Drops Profit Forecast

Due to a disappointing first quarter, Nintendo has lowered its forecast for the current fiscal year – including a drop in expected net profit from 110 billion yen ($1.4 billion) to 20 billion yen ($260 million).

Both Wii and Nintendo DS sales are down as compared to the same period last year by 49 and 54 percent, respectively. The 3DS, meanwhile, sold 710,000 units worldwide in the past three months (ending on June 30). In response, Nintendo has dropped the price of the 3DS from $249.99 to $169.99. Nintendo also reports that it sold 4.5 million units of software worldwide over the same period.

The company is still turning a profit, but you have to wonder if shareholders are angry given that the forecast is dropping that much. Or are they encouraged by the price cut and by having the Wii U on the horizon?

[via GameSpot]