Nintendo shares drop by 18 percent following profit warning

Nintendo experienced an 18 percent drop in shares following a profits warning issued by the company last week confirming it expects to make an operating loss off 35 billion yen (roughly $335 million) in the financial year ending March 31, 2014.

This marks Tokyo investors' first reaction to last week's news, which evened out later in the day. Following the company's 18.43 percent dive, the company saw a slight recovery with shares reaching 11.16 percent in opening trade.

Dips in stock come in the wake of what Nintendo describes as "significantly lower" holiday season sales than was originally forecasted. The company now forecasts that 2.8 million Wii U consoles and 13.5 million Nintendo 3DS units will ship this financial year, a shift from the previous estimation of 9 million and 18 million, respectively.

Company head Satoru Iwata revealed last week Nintendo is exploring a new business structure and studying how smart devices could help boost sales, adding that "it's not as simple as enabling Mario to move on a smartphone." This would be a new push for the team that in October stated it had no plans to brings its games to mobile platforms.