Nintendo Phuten is one of the lesser known Nintendo subsidiaries, responsible primarily for the sales of Nintendo hardware and games in Taiwan. Future business in the area will be handled by Nintendo Hong Kong, however, which will be responsible for sales of local products and distribution.
Earlier this year, Nintendo revealed an operating loss of just over $15 million for the nine month period ending Dec. 31, 2013, after dismal sales of the Wii U forced the company to slash its yearly forecast.
While the company's financial situation is likely a reason behind the Taiwan subsidiary's closure, specifics have yet to be detailed. We've contacted Nintendo for more information and will update as it comes.