After cutting its Wii U global sales forecast by nearly 70 percent after a dismal holiday season, Nintendo forecasts that it will likely operate at a loss of 35 billion yen (roughly $335.76 million) at the end of its fiscal year ending in March, according to a report today from Reuters.
Nintendo slashed its Wii U projections from an expected 9 million units sold in 2013 down to just 2.8 million units sold. The company also lowered expectations for 3DS sales from 18 million to 13.5 million.
The failed Wii U experiment, according to one analyst, likely will cause share holders to sell off their Nintendo stock after the disappoint sales of the Wii successor.
"The fact that the 'Wii U strategy' has failed is disappointing and will likely trigger a sell-off as soon as the market opens," said Makoto Kikuchi, chief executive of Myojo Asset Management.
Nintendo president Satoru Iwata apologized to shareholders at a meeting in Osaka, Japan, but added that he would not step down from his post.