On Friday Nintendo projected that it would take a $240 million net loss for the fiscal year ending in March on weak holiday sales of its Wii U console and related software, and scaled back its sales projections for its home console and its 3DS hand-held. This morning the company is seeing the effects of that news in its stock price, according to this BBC report.
The Wii U maker saw its share price drop by a massive 18 percent at the close of trading on Monday on the Tokyo Stock Exchange. The stock fell as low as 11,935 yen ($114.65) by the end of the day's trading as investors reacted harshly to the new guidance.
The last time Nintendo took such a big hit was in 2011 when it cut the price of the 3DS due to slow early sales (it fell to $158.57 on that day and continued to fall afterwards). Eventually the stock had a rebound and made it as high as ($149.66) earlier this month, but those gains have all been wiped away with this latest news…