Nintendo's Stock Falls After Wii U Announcement

Discussion in 'User Submitted News' started by Ritsuki, Jun 8, 2011.

Jun 8, 2011
  1. Ritsuki
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    Member Ritsuki ORAORAORAORA

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    Nintendo's stock fell to a five-year low after the announcement of its 2012 system, Wii U.

    According to Bloomberg, Nintendo's shares on the Japanese stock market feel 5.7 percent. "There were high expectations from the new version of the Wii, and this fell short," says Yusuke Tsunoda, an analyst at Tokai Tokyo Securities. "People had expected to see something more at a big event like E3, but there wasn't really anything more than what's already reported."

    While Tsunoda is right that nobody was really surprised that the Wii U was announced, to say the Wii U actually "fell short" of people's expectations is surprising in and of itself. Regardless, there are obviously some people in Japan who feel like Tsunoda does – at least enough traders to make the stock dip.
    [/p]

    It's also interesting to note that it fell to lowest in five years.

    Source

    More info : here
     


  2. KingdomBlade

    Member KingdomBlade Blade v3+ (I R SHMEXY)

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    Aaaaand, comes the influx of Nintendo fanboys that don't know the first thing about the stock market wondering how it happened.
     
  3. cwstjdenobs

    Member cwstjdenobs Sodomy non sapiens

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    Investors are worried about escalating costs leading upto the system launch, eating away at dividends for the next couple of years?
     
  4. Ritsuki
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    Member Ritsuki ORAORAORAORA

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    Yes, it's normal but it's also interesting to note that it fell to lowest in five years.
     
  5. KingdomBlade

    Member KingdomBlade Blade v3+ (I R SHMEXY)

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    One of many possible reasons.

    Investors might also be worried about lack of immediate sales due to the cost of the system at launch, which in part is due to the production costs, and it's differing consumer appeal, which is because of the new controls system.

    My knowledge of the stock market is basic at best to be honest, so don't blame me if the above statement is wrong.
     
  6. awssk8er

    Member awssk8er GBAtemp Advanced Maniac

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    We studied Nintendo's stock in my econ class. It never really goes up and down much.

    It's natural that it would drop a little. Probably nothing significant.
     
  7. nando

    Member nando GBAtemp Addict

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    investors aren't worried about shit. stocks driven down after an announcement is simple tradition to drive small investors out and in the end higher profits for big investors.

    it happens with Apple every single time they announce something. the stocks are driven down, small investors get squeezed out because they can't maintain minimum trade balances and then the big investors buy the stocks again for cheap and drive the price up again.
     
  8. DiscostewSM

    Member DiscostewSM GBAtemp Psycho!

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    People are skeptical when it comes to investing in something different.
     
  9. Zarxrax

    Member Zarxrax GBAtemp Fan

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    Uhh??? Apparently you missed it before they announced the wii, when it was like $15 a share, and then steadily climbed to like $80 a share, now down around $30 again? I'd say thats quite some movement.

    I still kick myself for not cashing out when I had the chance.
     
  10. Nathan Drake

    Member Nathan Drake Obligations fulfilled, now I depart.

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    It fell to the lowest in five years.....the Wii came out about five years ago...coincidence? I think not.
     
  11. DiscostewSM

    Member DiscostewSM GBAtemp Psycho!

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    There are articles on the web that are reporting that the Wii U is just the new controller, and is only an extension to the existing Wii. If I had the link I found on me (which I don't because I was using another computer at the time), I'd post one of them. Anyways, I wouldn't doubt that investors don't have a clear mind about what the Wii U truly is.
     
  12. Slyakin

    Member Slyakin See ya suckers

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    E3 is still going on; The influxes are probably just normal for right now. There is almost no information regarding the WiiU besides the controller, so people are really basing themselves off of expectations.

    By next year, the stocks should regulate again.
     
  13. Ritsuki
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    Member Ritsuki ORAORAORAORA

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    In fact, Nintendo's stocks gained 6.2% after the announcement of the Wii in E3 2006.
     
  14. TheDarkSeed

    Member TheDarkSeed I'm a pretentious sack of shit

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    Isn't the system great? [​IMG]
     
  15. SamAsh07

    Member SamAsh07 GBAtemp Addict

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    Who gave you the impression that the 3DS flopped? Geez Sony fanboys at their worst [​IMG]
     
  16. Midna

    Banned Midna Banned

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    There's at least a full year until Wii U launch. Wii profits are going to be down (except maybe when Kirby and Zelda are released.) Plus, with the potentially uncertain future of the 3DS and the completely unknown future of the Wii U, investing is a gamble. Investors are always cautious. It's natural. Just wait 'till the actual launch is coming up, or the AAA 3DS games start coming out. Stocks will climb.
     
  17. tigris

    Member tigris Sentient Existential Anthropomorphic Sweet Potato

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    No shit, sherlocks! That Wii U made 50/50 people so sad, there and then... and where was the Pikmin 3 Reveal!
     
  18. Memino

    Member Memino GBAtemp Regular

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    +1 Panic selling is not a new concept. As soon as stock starts showing signs of decreasing smaller investors don't want to risk losing money so they sell, and there are people happy to buy trust me. I'm going to predict that it'll shoot right back up as soon as a major announcement is made or if 3DS sales pick up.
     
  19. NiGHtS

    Member NiGHtS GBAtemp Advanced Fan

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    He is right to a certain degree.

    Compared to what was EXPECTED it is a flop.
     
  20. DSGamer64

    Member DSGamer64 Canadian, Eh?

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    Yeah, well Nintendo stocks haven't dropped in 5 years because the DS was able to prop up the company and in a way the Wii and DS were just the cash cows Nintendo needed to start restructuring themselves as a gaming company. Unlike Sega, Nintendo actually did take a rather clever route and while they were able to please the hardcore audience with portable games, that wasn't the case with the Wii which really was their biggest money return for little cash investment hardware wise. So in essence it was probably one of the smartest business investments they could have made at the time lest they wind up shitting the bed with expensive technology and getting the same sales numbers as Microsoft and Sony, they focused on innovation first and that paid off big time. Now we will see the merger of innovation with powerful hardware that will give players the best of both worlds.
     

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