Nintendo shutters European HQ, lays off 130 workers

|About: Nintendo Co., Ltd. ADR (NTDOY)|By:, SA News Editor

Struggling to cope with soft Wii U sales, Nintendo (NTDOY) has decided to close its European HQ (based in Großostheim, Germany). 130 workers will be laid off, and Nintendo will now run its European ops out of its Frankfurt office.

The move comes after Nintendo reported a $229M net loss for the fiscal year ending March '14. Wii U sales totaled only 2.72M during the year (far below an initial forecast of 9M), and just 310K in the final quarter. By contrast, Sony sold 7M PS4 units in the console's first 5 months of availability.

Nonetheless, Nintendo forecasts a ¥40B ($390M) profit for the current fiscal year. Wii U sales are expected to total 3.6M, and 3DS sales12M.