Former Nintendo president Hiroshi Yamauchi slightly less rich

Nintendo stock plunges 21 per cent, Yamauchi loses a ton

Nintendo’s stock has hit a new five-year low on the back of the news of a worldwide price drop on the 3DS and a massive profit forecast slash of 82 per cent.

Bloomburg Japan reports the ¥25,000 to ¥15,000 price cut ($100 cut in Australia) on the 3DS now means the system is being sold below cost. Nintendo president Satoru Iwata says the extreme measures are necessary to improve sales of the not-so-hot handheld. Mr Iwata also says he has taken a 50 per cent salary cut in light of Nintendo’s poor performance. But his salary cut is likely to be nothing compared to the loss suffered by former Nintendo president Hiroshi Yamauchi. Bloomberg reports Mr Yamauchi, who owns an estimated 10 per cent of all Nintendo shares, may have lost as much as $500 million in a single day of trading. Sure, that means he still has a fortune of $4 billion, but now he’ll only be able to travel in a fleet of yachts rather than an armada.

Sound out in the forums about what you think this will mean for Nintendo. Are they running scared now due to the poor reception to the Wii U and lukewarm 3DS sales? Remember Sony have priced the Playstation Vita aggressively against the 3DS so things will sure be interesting this Christmas.

Source: Bloomberg