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Nintendo shares have fallen to their lowest level in five months after reporting lacklustre sales of its traditional gaming devices.
Investors have honed in on soft revenue figures and a lack of a bump to its full-year sales forecast, pushing the shares 3.7 per cent lower this morning in Tokyo. Shares had been off by as much as 4.8 per cent, and were trading at their lowest level since late August.
After market close on Tuesday the Kyoto-based company reported a 21 per cent decline in December quarter revenue to ¥174.3bn ($1.54bn) and maintained its full-year sales outlook steady at ¥470bn. That is despite the recent debut of Mario, the company’s iconic mascot, on smartphones and the impending launch, in March, of its new Switch video game console.
Better news for the company has thus far been unable to offset investor disappointments. More encouragingly, Nintendo doubled its annual profit outlook to ¥90bn for the fiscal year ending March 31 compared with an earlier forecast of ¥50bn, thanks in part to revised forecasts for a weaker yen that would boost the value of overseas sales.
Nintendo is now trading 30 per cent below a seven-and-a-half-year high hit in July in the wake of the release of the wildly successful Pokémon Go mobile game based on characters from the venerable video game franchise published by the company.