Nintendo shares jumped in early trade Thursday after the struggling Japanese gaming giant announced a share buyback plan and a pay cut for its president, following a dive in earnings.<\/p>\n
Nintendo stock was up 3.26 percent at 13,300 yen in Tokyo in the first 30 minutes of trading after rising more than seven percent earlier.<\/p>\n
The broader market was down more than 3.0 percent in the first half hour, after the US Federal Reserve’s decision to cut stimulus spending hit emerging markets and currencies.<\/p>\n
After the market closed Wednesday the head of Nintendo said he would slash his salary in half to atone for the earnings downturn.<\/p>\n
The company logged a 30 percent dive in nine-month net profit on weak demand for its new Wii U console, with some gamers enticed by cheap, downloadable games for smartphones.<\/p>\n
To help shore up its embattled stock, Nintendo also announced it would buy back nearly 8.0 percent of its outstanding shares.<\/p>\n
Nintendo is due to hold an analyst conference later Thursday to outline plans for a new business strategy.<\/p>\n
The Kyoto-based company last week shocked investors by warning it expects to slip back into the red in the year to March and slashed its Wii U sales forecast owing to weaker-than-expected holiday season demand.<\/p>\n
Analysts have criticised the system’s limited game selection, as rivals Sony and Microsoft enjoy robust demand for their new PlayStation 4 and Xbox One consoles.<\/p>\n
Nintendo sinks on mounting losses<\/a><\/strong><\/p>\n Nintendo unveils new hand-held game console<\/a><\/strong><\/p>\n