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.