Nintendo stock plummets by 21% after financial results

Ex-president Yamauchi thought to have lost up to $540 million

Nintendo's stock nosedived after yesterday's financial results, losing 21 per cent of its value in a single trading period - costing ex-president Hiroshi Yamauchi a huge amount of money.

Yamauchi was president of Nintendo for 53 years and retained a ten per cent share in the company across 14.17 million shares, according to a March 31 posting. Those shares are thought to have lost a total of 42 billion ($540 million) in a single day, reports Bloomberg.

The fall was the result of a devastating financial report for Q1, 2012 which indicated that Nintendo was slashing its profit forecast by a massive 82 per cent and cutting prices of the 3DS by around a third world wide in order to "build momentum".

Earlier this year, Nintendo's shares reached a five year low after the Wii-U reveal at E3 in Los Angeles, closing at a price of 16,610. Yesterday's slide brought the price to 11,100 the biggest intraday drop since at least 1990.

Whilst that price has since recovered slightly to a current level of 12,270, the message from investors seems clear.

Related stories

Stardew Valley is the best-selling indie game on Nintendo Switch

Overcooked 2 is the highest new entry on top ten chart revealed at GDC 2019

By Matthew Handrahan

Nintendo introduces Nintendo Labo VR Kit

Fourth Labo series kit includes six creations, including VR goggles for "shareable, simple VR gaming experiences"

By Rebekah Valentine

Latest comments (7)

Aleksi Ranta Category Management Project Manager 7 years ago
oh dear.
0Sign inorRegisterto rate and reply
Lewis Middleton Studying Game Design and Production Management, University of Abertay Dundee7 years ago
oh dear is right
0Sign inorRegisterto rate and reply
Sandy Lobban Founder, Noise Me Up7 years ago
probably a good time to buy some shares, if you believe in the wii u and nintendo bouncing back :)
0Sign inorRegisterto rate and reply
Show all comments (7)
Kai Oehler Game Designer 7 years ago
Nintendo's never been a company to buy short-term shares for anyway. They've had worse, and like Sandy said, it's a great buying opportunity. Wish I had spare change to invest right now.
0Sign inorRegisterto rate and reply
Paul Trowe President & CEO, Replay Games7 years ago
My prediction: Wii U is going to be a 1st party success but not a 3rd.
0Sign inorRegisterto rate and reply
Greg Wilcox Creator, Destroy All Fanboys! 7 years ago
Nintendo needs to take time out and refocus. Go back to creating SOLID first party games that launch WITH a system (and keep coming on a regular basis), not rely on third parties to pick up slack while they tease away with "coming soon" games at trade shows and press events.

Yes, good games take time..... so take he time to make them, not rush a system out to be first and HOPE people buy into "potential" and the branding like the sheep they are. That worked fine with the Wii, but in terms of the 3DS, there were far too many variables that kept the handheld from being as big as it should have been at launch.

As for the future? Maybe think about taking MORE chances with proven characters and/or titles that are unconventional yet in demand (why there hasn't been a new Earthbound game released on a Nintendo system is beyond me, given the current price of the first game PLUS the rather stellar fan translation of the GBA game).

Granted, there were a number of excellent third-party titles on the Wii that didn't do well in terms of sales because of the perception about the system (the usual bias about visuals and some hesitation about motion control gaming) from some "core" gamers that should have known better. With the 3DS, all of the best games were/are in development when the thing hit stores, a bad thing when you're trying to show people how innovative your new device is. The rubes fall for the pack-in stuff and pop-up book 3D effects, but the core is just pissed that they see nothing they want to buy.

Launching the 3DS so soon was a bad idea in that it came right after the last DS upgrade and many were unwilling to buy something that cost more than the last DS, even with the added features. It's certainly not a bad little handheld at all - I've played with one quite a lot since the launch, but there have only been a handful of titles I'd actually buy outright. A year or so later to launch would have made a bigger difference in terms of what was available as well as given some more of a chance to accept paying for a new system so soon.

I also think game companies NEED to stop trying so damn hard to copy each other business model and follow their own stars. Nintendo's best days were when it surprised us with games that were interesting and fun to play, not loaded with gimmicks based of a revolving trend that pops up every few years. 3D was big in the 50's, tanked in the 80's and 90's, was big a few years back with Avatar, but thanks to too much crap made to cash in, it's now back in the trash heap of tech history.
0Sign inorRegisterto rate and reply
Torgeir Hagland Sr Programmer, Gaikai Inc.7 years ago
@Paul, hasn't that *always* been the case for Nintendo? :)
0Sign inorRegisterto rate and reply

Sign in to contribute

Need an account? Register now.