Nintendo shares prices prediction 2011- 2012, analysts forecasts

Indonesia stock info - Nintendo shares prices prediction 2011- 2012, analysts forecasts, Nintendo shares prices prediction 2011- 2012, Nintendo stock prices prediction 2011 ; Nintendo Co Ltd's shares plunged as much as 20 percent after the company swung to a quarterly loss and slashed its annual profit target, hit by anemic sales of its five-month-old 3D capable games device.

The stock plunge wiped as much as $5 billion off the Japanese videogame maker's market value and triggered a rash of broker downgrades after the firm said profits would fall to their lowest in 27 years.

Nintendo cut the price of its 3DS to a loss-making level in a desperate attempt to push up sales, less than half a year after launching the gadget that it hoped would replicate the success of the previous generation DS.

The Kyoto-based company must consider providing games to these new platforms rather than focusing on new hardware, Sakurai added.

Nintendo also reduced sales forecasts for its Wii home games console and the previous generation DS handheld device.

The Wii faces harsh competition from Microsoft's Xbox, while many casual gamers are flocking to devices such as Apple's blockbuster iPhone and iPad, rather than dedicated games gadgets.

Nintendo's shares fell as much 20 percent to 11,100 yen, its lowest intraday level since May 2004 before recovering to trade down about 12 percent by 0530 GMT. The shares have plunged nearly 50 percent so far this year.

by cutting the price before you get economies of scale, of course you make losses on the hardware, Nintendo sold only 710,000 units of the 3DS in April-June, compared with 3.6 million in the month following its launch, and a tiny fraction of the 16 million unit target for the year to March 2012. The Wii sold only 1.56 million units, half the figure in the same period last year.
The company cut its annual operating profit forecast after market hours on Thursday to 35 billion yen from an initial forecast of 175 billion yen. The new estimate is far short of the previous consensus of 154.9 billion yen based on 24 analysts' forecasts ahead of the results.

The 3DS will cost 15,000 yen in Japan starting Aug. 11, down from 25,000 yen. In the U.S., the price drops to $169.99 from $249.99 on Aug. 12. Nintendo does not set suggested retail prices for Europe but said it would lower wholesale prices by about a third.

Nintendo on Thursday posted a net loss of 25.5 billion yen ($324 million) in the April-June period, worse than the 25.2 billion yen loss a year earlier. For the fiscal year through March 2012, Nintendo expects net profit of 20 billion yen, down 82 percent from its previous outlook, on sales of 900 billion yen.

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