Nintendo shares fall to 5 year low after Wii U reveal
Stock declines as analysts are disappointed by E3 conference
Nintendo's share price has hit its lowest value in five years following the unveiling of the Wii U device.
That's according to Bloomberg, which noted a 7.5 per cent drop in the price to ¥16,610 (around £125). More than 1.67 million shares changed hands yesterday, compared to the daily average of 724,000.
"There were high expectations from the new version of the Wii and this fell far short," said analyst Yusuke Tsunoda.
"People had expected to see something more at a big event like the E3, but there wasn't really anything more than what's already reported."
Nintendo stocks had already taken a blow earlier this year, when concerns over supply of the 3DS and the impact of the Japanese earthquakes made investors cautious, pushing stock to its lowest in two years.
]http://www.gamesindustry.biz/articles/20...[/link]
Duplicate story.
This tells me the social gaming bubble is growing to a dangerous proportions as investors are carelessly throwing money behind something they don't fully understand.
More to the point, Nintendo has never had a red quarter that wasn't based on currency exchange rates in the entire 120+ year history. And that's only happened twice. If anything, they should be the brick you invest in regardless of what they do.
Not wanting to pick on you, but this is exactly the sort of thinking that leads to bubbles and crashes. Everything has an absolute value, as well as relative value. Whether a share price goes up or down should depend on where it started from.
I agree with remark about social gaming. A lot of "amateur" investors only got introduced to social gaming with FarmVille and therefore they perceive this to be "new". In fact, MMORGS, friends lists, clans, etc, have been a part of gaming for a long time. The innovation really was casual-social gaming, but casual gaming by definition is not "sticky", and you have to wonder how many people will loose a lot of money when the penny drops, and profits never materialise.
Anyway, my interest in the new console went up because I started thinking of a few dozen ways I'd love to see it used in games as soon as I saw that controller (and I'm not a game developer).
Edited 1 times. Last edit by Greg Wilcox on 8th June 2011 9:01pm
Project Cafe - hint, hint? Deathmatch - anytime, anywhere...
Contacting my broker with a clear buy directive... ;^)
Edited 1 times. Last edit by Adam Parker on 9th June 2011 2:52am
The 3DS is not the proper form for modern gaming. Its audience is too limited. Under 6 (IIRC), you need to deactivate the 3D, so the parents can decide to keep the DS instead of buying. Over 10, one prefers an IPhone/IPad/Android (beyond this age, talking to girl/boy-friends via facebook/phone/email is as important as gaming). Some "hardcore mobile gamers" will buy the device but that's not how DS and Wii built their success.
Sony is in a difficult position with the PS3 but they are on the right track about their phone/console combo.
Edited 1 times. Last edit by Andrew Goodchild on 9th June 2011 12:06pm
Not sure what everyone was really expecting, maybe holographic capabilities?
They upgraded the graphics, the Disc format, and added new features with the controller.
In my opinion the whole Social bubble will burst soon.