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Finance

Nintendo stock hits two year low

Mon 11 Apr 2011 9:19am GMT / 5:19am EDT / 2:19am PDT
HardwareFinance

ADR share price continues fall over concern for 3DS demand

Nintendo's stock prices in America have fallen by 12 per cent since the beginning of April, as worries over demand for the 3DS and the effects of the Japanese earthquake upset investors.

Nintendo's ADR stock (American depositary receipt - a representation of shares in foreign companies) closed at $30.10 on Friday, the lowest figures since late 2009.

Prior to the 3DS launch in Japan stock stood at $38.29, but despite an apparently strong launch sales of the new portable have quickly dropped away in the console's homeland. As a result the 3DS was outsold by its aging rival the PSP last week in Japan.

Although Nintendo has portrayed the US and European launches as successful no sales figures have been released for the former - just an announcement that the 3DS broke the one-day sales record for a portable console.

In Europe the system sold 303,000 units in its first two days, with 113,000 in the UK and 50,000 in Germany.

The UK total is significantly below the 140,000 pre-order figure quoted prior to launch. 3DS titles have also made little impact in the UK charts, with no titles in the top 20 this week.

Nintendo had originally predicted 4 million sales worldwide for the system by the end of March, but this figure now looks in doubt. The goal of 1.5 million sales in Japan in the first month has already been missed.

The earthquake disaster in Japan appears not to be a factor, with no Nintendo factories damaged and no reports of stock problems for the console.

12 Comments

Daniel Hughes
Studying PhD Literary Modernism

436 496 1.1
Wasn't it a 4 million shipped target? And 1.5million shipped target? Therefore, shipped to retailers, and not sell-through to consumers? Or do Nintendo report sell-through figures to consumers?

Posted:3 years ago

#1

Rick Lopez
Illustrator, Graphic Designer

1,269 941 0.7
I hope Nintendo gets that long awaited reality check.

Aside from the 3D the 3DS doesnt really offer an expirience that far ahead of the original DS. Too many ports and very few "new" games, a high price and low battery life.

When most major AAA games you can find for XBOx and PS3 for 20$ or 30$ and the console itself costs almost as much as a PS3 its easy to see why its not selling as expected.

I played the 3DS and find that the 3D effect adds very little to games. Its not like you can see in, around or behind objects. Its more like a pop up book effect with flat cut outs. And while pretty cool, its not worth the pricetag. No real sense of volume. And sure it has more horsepower than the DS, but in a small screen the graphical expirience is minimal. I think portable consoles lend themselves for a differant gaming expirience then home consoles. And portable gaming can benefit with higher pixel density screens. I think apple is going to include that in the next iPAD.

I think at the end of the day its the game content that matters most and the type of games. I think thats why angry birds was so succesful. Its a game that works on a portable, but the expirience would not work as well on a home console.

If SONY can get the battery life and price right on the NGP, I have high hopes for it. Dual analog sticks and that rear touch panel will offer unique controller inputs. And god... I hope they change the name.

Edited 1 times. Last edit by Rick Lopez on 11th April 2011 12:55pm

Posted:3 years ago

#2

Glen Elliott
Partner/Head of Sales

57 2 0.0
fyi stock was up 510 yen (2.48%) today

The ADR's are a pink sheet, and very illiquid, on average only 22k of the Ords trade a day in the States

Posted:3 years ago

#3
We'll have the EOY financials soon enough, and find out exactly how many units they shipped - I'm guessing around 3.5m. Sell through would be at least 2.5m.

I have had a play with the 3DS now, and although I was impressed by the screen - it very much feels like a toy at the moment. Having a XL, its going to be hard for me to get used to the smaller screen - not to mention the battery life cut in half.

That said, the console reeks of potential - and I think that is all that matters. Its going to take some time to build a library of AAA, original titles for the console - but if anyone can do it, Nintendo can. A Pokemon game with 3D battles, sort of like the augmented games look - would be truly amazing (and an instant hardware seller).

People have short memories - the (very) original DS didn't set any charts on fire when it launched, and it wasn't until a couple of AAA titles hit that the hardware sales exploded.

Posted:3 years ago

#4

Tom Keresztes
Programmer

633 239 0.4
Any new console needs at least a year before it can be said if its failed to live up to the expectations - it needs new games. Though they could be in a difficult situation with the current 3DS game prices (vs the mobile prices)

Posted:3 years ago

#5

Germán Vázquez
Executive Producer

35 16 0.5
Even without the Nintendo factories damaged and the stock in place you have to wonder if the earthquake had an effect on peoples spending habits, I mean the Japanese government already calls it the worst disaster since WWII so it has to have some sort of psychological effect on people not wanting to use their money on a new hardware. I mean they probably pushed a little further back in their priority list since its so new they might feel that latter once things get better it will be more appropriate to spend money on recreational stuff.

Posted:3 years ago

#6

Terence Gage
Freelance writer

1,288 120 0.1


I guess if the last 6 or 7 years in the industry have shown us anything, it would be to never second-guess Nintendo.

Posted:3 years ago

#7

Jim Webb
Executive Editor/Community Director

2,242 2,206 1.0
Daniel, you are correct. Those figures were shipment figures.

Most consoles don't launch with a mind blowing line up (though maybe 1 game stands out pretty good). And the 3DS has a long term line up that looks very impressive indeed.

Michael, you are correct. It wasn't until the DS Lite was released that it started selling like crazy. In fact, the PSP outsold the DS in the US until that point.

Posted:3 years ago

#8

Tony Johns

520 12 0.0
Wait until the really good 3DS games are out, then we will see what is going on.

However I do believe that the 3DS lacked a real launch titile and perhaps those cards that you point the camera at and see things on the screen that are not there on the card was an interesting idea, but needed some real software to back it up.

Posted:3 years ago

#9

Ken Barnes
Editor

8 29 3.6
"And the 3DS has a long term line up that looks very impressive indeed."

Can you clarify, please? I can only see Layton, Mario Kart, and potentially Zelda that would even get me thinking slightly about buying a 3DS. Certainly, none of the launch titles have done it for me. I love me some Pilotwings, but from what I've played of the new version, its got very little in common with the earlier games in the series. The cynic could say that its just another way of Nintendo stretching the life out of its diabolical-looking "Resort" game world.

As for the multi-SKU Nintendogs + Cats strategy, well...the least said about that, the better. There's no reason why all of the characters couldn't fit onto one cartridge, and the same could be said of the original Nintendogs for DS.

There again, it isn't like Nintendo has any respect for their customers at all. How many practically identical versions of the DS have we gone through now? There was the original one, then the DS Lite, DS XL, DSi, DSi XL, and now the 3DS which, aside from one cool visual trick and a tiny bit more oomph, is identical again. They did the same with the Gameboy, and the same with the Gameboy Advance. Each time, they market their new machines as if they're the thing that everyone MUST have. As if they'll be better. As if they'll change your life. The same goes for the likes of Wii Fit Plus (which had about 4 minutes work put into it, compared to Wii Fit) and the "essential" and "game-changing" MotionPlus add-on and its massive catalogue of FIVE titles. Casual gamers WILL eventually get sick of it, and they'll leave the industry.

The "money, money, money, money" approach is going to end up biting them on the backside, and for the consumers' sake I hope it happens sooner, rather than later.

Posted:3 years ago

#10

Daniel Hughes
Studying PhD Literary Modernism

436 496 1.1
"Can you clarify, please? I can only see Layton, Mario Kart, and potentially Zelda that would even get me thinking slightly about buying a 3DS."

Well, Ocarina, Steel Diver and Dead or Alive are coming in June. There's Resident Evil: Mercenaries, Resident Evil: Revelations, Kid Icarus, Paper Mario, Super Mario 3D, Cave Story 3D, Animal Crossing, Bomberman 3DS, de Blob: the Underground, there's the usual list of working title games such as Final Fantasy, Dragon Quest, FIFA, Ninja Gaiden, Sonic etc. If you're interested in Layton there's Professor Layton vs Phoenix Wright. Star Fox 64 3D can't be too far away either. There's plenty coming along, really, and there'll be more at E3.

If you're frustrated by Nintendo's approach to handhelds, then perhaps it just isn't for you? I'm not entirely convinced yet--but I can see myself snapping when Ocarina comes out. The Game of the Forever 3D is too much for me to resist, I fear.

Posted:3 years ago

#11

Jim Webb
Executive Editor/Community Director

2,242 2,206 1.0
Thanks Daniel. That covers a good portion and I could list as many more to help back it up further.

Ken, the differences between the DS, DS Lite, DSi and, obviously, the 3DS are greater than the differences in the PSP-1000, PSP-2000 and PSP-3000. You seem to have some serious angst that seems misplaced in that your issues can be applied to many factors in the industry, not just Nintendo....as well as a vastly misunderstood knowledge of the game library for Wii and DS. Your post seems better fit for NeoGaf than Gi.biz.

Posted:3 years ago

#12

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