Nintendo Shares Drop After Loss Warning

Nintendo Logo(CNN) — Nintendo spooked investors, and it showed in Monday trading.

Shares of Nintendo lost 20 percent of their value on Monday, before regaining most of the lost ground.

Nintendo’s stock in Tokyo was still down by more than 6 percent in afternoon trading.

Some investors fled Nintendo after the company’s Friday announcement that it expects an operating loss of more than $335 million in its fiscal year, which ends in March. That’s a significant drop from a previous forecast when Nintendo expected to turn a profit of just under $1 billion.

Nintendo slashed estimates for global sales of its Wii U console from nine million to just under three million, facing stiff competition from Microsoft’s Xbox One and Sony’s PlayStation 4.

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