Nintendo shares plunged 18 percent on Monday following a worse-than-expected profit loss warning on Friday, but analysts told CNBC that investors shouldn't give up hope yet as the company could be on the verge of a paradigm shift.
Shares in the Japanese headquartered gaming firm lost nearly a fifth of their value on Monday, falling as low as 11,935 yen ($114.62), after the company slashed its global Wii U sales forecast for the year to March 31 by almost 70 percent, heaping pressure on the firm to ditch its policy of not licensing its software to rivals.
"The most compelling case I've heard for this is that these results are so bad, and this failure by the President Satoshi Iwata is so catastrophic, it's going to motivate some kind of shareholder activism or some kind of paradigm shift in Nintendo," said Benjamin Collett, head of Asian equities Sunrise Brokers.
"That might be the case but I don't think it's worth anything until it reaches about 6,000 yen… give it a few weeks," he added.
Nintendo, which is famous for its colorful Super Mario and Donkey Kong characters, was once at top of its game, but the company has fallen on hard times in recent years, amid poor hardware product sales.