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Nintendo share price falls after 3DS conference

Tue 13 Sep 2011 11:11am GMT / 7:11am EDT / 4:11am PDT
Business

Investors unconvinced by announcements, shares drop by 5 per cent

Nintendo's share price fell by 5 per cent following its 3DS press conference.

The drop leaves the company's share price at 12,290, the lowest since mid-August, when disappointing financial results caused it to plummet 21 per cent in a single day.

Nintendo's shares spiked by 8.4 per cent to 13,100 at the end of August after invitations to today's 3DS press conference sparked rumours of major announcements.

However, analysts and investors were not enthused by the new software, extra functionality, and "misty pink" 3DS hardware Nintendo actually unveiled.

"I don't think the new games will make any difference," Ichiyoshi Investment's Mitsushige Akino told Reuters. "Nintendo succeeded by pulling in people who weren't gamers and their needs now are no longer being filled by Nintendo - they are happy playing games on their mobile phones."

3DS hardware sold 215,000 units in the week following its price cut, but numbers have fallen by around 75 per cent in the time since.

Nintendo's share price has declined by almost 50 per cent since the start of the year.

10 Comments

Daniel Hughes
Studying PhD Literary Modernism

436 496 1.1
Much of the unhappiness seems to stem from Nintendo not moving into mobile and tablet games--which begs the question, if they have any knowledge of Nintendo, why would they expect Nintendo to move in that direction? Nintendo will continue to keep their own software on their own platforms, and would rather go out of business than spread their IP across other platforms.

As far as I'm concerned, Nintendo have taken another step to pushing the 3DS forwards to a better future--a good mix of big to small games, extra functionality, improvements to built-in software and a new model are a good start. Hopefully Nintendo will prove these analysts and investors wrong, as they have done in the past.

EDIT: Also, the success of the price cut shouldn't be compared to how well sales do in the weeks after the spike on the week of the price cut, which also included a Pokemon release, boosting sales further. For a clear indication of the effects of the cut, pre-cut sales levels should be compared to post-cut sales levels, which would show a marked improvement. Why all the doom and gloom reporting?

Edited 1 times. Last edit by Daniel Hughes on 13th September 2011 1:54pm

Posted:3 years ago

#1

Jim Webb
Executive Editor/Community Director

2,266 2,403 1.1
This is what I've been saying since the Wii U was announced. Investors simply are not very savvy regarding the companies, or even the industries, that they invest in.

Nintendo announces Monster Hunter 4 for 3DS and they get a drop in share price? I shake my head.

Posted:3 years ago

#2

Raymond Wong
Technology Reporter

1 0 0.0
Time to pick up Nintendo stock...

Posted:3 years ago

#3

Daniel Hughes
Studying PhD Literary Modernism

436 496 1.1
Quite interesting--Square Enix and Capcom's stock has fallen on the back of their major announcements for 3DS. Looks like Japanese investors don't want to see developer's money put towards supporting the traditional industry, but would rather have more resources invested in mobile gaming.

Posted:3 years ago

#4

Julio Borrero
Analist/Programmer

6 0 0.0

Investors are in favor of mobile games. The traditional way to play with consoles in homes not being backed by investors.
Mario 3D Land, Mario Kart 7 even Monter Hunter 4 did not help to maintain stable Nintendio share price.
Nintendo will have a serious problem if they fail 3DS 16 million sold. The revolution of the games for mobiles
causing Angry Bird has done much damage to the handheld market. Angry Bird may collapse to Nintendo?

Posted:3 years ago

#5

Etienne Jacquemain
Creative Director

1 0 0.0
This is why investors don't rule games companies: they're just investors :)

Posted:3 years ago

#6

Haven Tso
Web-based Game Reviewer

255 8 0.0
As Daniel has pointed out, people are just unrelealistic and don't know what Nintendo is if they expect Nintendo to just publish games on iOS or Android. At the end of the day they are not people who understand the business but just care about ripping quick profits

Posted:3 years ago

#7

Yiannis Koumoutzelis
Founder & Creative Director

362 207 0.6
ahem. it actually didn't drop :)

it was dropping 5% before the conference and it even went a tiny bit up afterwards :) it was a royal goof up from reuters :)


[link url=http://www.destructoid.com/false-alarm-nintendo-stock-didn-t-drop-after-conference-211336.phtml
]http://www.destructoid.com/false-alarm-n...[/link]


and of course a tiny look right underneath that reuters report makes it obvious. +0.34 or something like that. it's not really an improvement but considering that it was about to dip more and didn't, we can say it saw a raise 5% after the announcement :) that is if we want to push things a bit :)

Edited 1 times. Last edit by Yiannis Koumoutzelis on 14th September 2011 5:19am

Posted:3 years ago

#8

Jim Webb
Executive Editor/Community Director

2,266 2,403 1.1
Excellent find, Yiannis.

Perhaps investors aren't quite as bad as previously considered.

Posted:3 years ago

#9

Sergio Rosa
"Somewhat-Creative Director"

62 35 0.6
"The revolution of the games for mobiles causing Angry Bird has done much damage to the handheld market. Angry Bird may collapse to Nintendo? "
I don't know how many people are opting not to buy whatever Mario or Zelda game in favor of angry birds, but something tells me the majority of those millions of Angry Birds fans aren't really closely related to Nintendo's target gamers. It seems people give Angry Birds too much credit, and the only thing they have conquered is mobile gaming.

Posted:3 years ago

#10

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