Nintendo Stocks Continue Decline on 3DS Fears

September 9, 2011 -

Nintendo stocks declined 2.3 percent - the biggest decline in more than two weeks - in Osaka trading on the growing concern that price cuts to the 3DS will not do enough for the company to meet its full-year sales target. Nintendo stock fell 2.3 percent to 13,160 yen, the biggest drop the company has seen since August 24. Overall, the stock has declined 45 percent this year.

Investors are worried because the company was projected to sell 16 million 3DS systems by the year ending March 31, 2012. In July the company slashed the price of the 3DS by 40 percent, or $80, after sales fell far short of the company’s expectations.

“Nintendo must adjust its expectations in a world increasingly dominated by smartphones and tablets,” said Michael Pachter, an analyst at Los Angeles-based Wedbush Securities Inc to Bloomberg. “Nintendo will have two-thirds as much success in handhelds and consoles as in the past.”

The company sold about 235,000 units of the 3DS in the U.S. in August, About 185,000 of those units were sold after the price was cut to $169.99 on Aug. 12. Sales of the 3DS in Japan totaled around 55,000 units in the seven days ended Sept. 4, according to the Enterbrain. The figure is 74 percent fewer than sales made in the second week of August when Nintendo cut the price.

Source: Bloomberg


Comments

Re: Nintendo Stocks Continue Decline on 3DS Fears

I'm suprised that they even bet on 3D when 3D TV sales are so bad. Even without the glasses, its been around and no ones been that impressed.

-Austin from Oregon

Feel free to check out my blog.

Re: Nintendo Stocks Continue Decline on 3DS Fears

Methinks Nintendo overestimated it's own popularity and salability of it's products due to the Wii. The Wii was popular because it was cheap and it promoted exercise (or at least appeared to) with many of it's games. The price point for a lot of the games was also cheaper than the current price point of 3ds games.

Their other big problem with the market they're competing in. With the Wii, they were fighting against the 360 and the PS3. With the 3DS, their main competition isn't the PSP, but the Apple iPhone, iPad, and various Droid phones and Pads. They may have had a corner on the portable market for years, but with the massive popularity of flash games being played on phones for free or a dollar, it's a lot harder to convince the 'casual' gaming market to buy a dedicated portable for gaming.

I hate broccoli/ and think it totally sucks/ Why isn't it meat?

Re: Nintendo Stocks Continue Decline on 3DS Fears

They sold 235,000 units. That's still not a lot, especially worldwide. And we're only talking less than a month on increase; even the Titanic thought they had the incoming water under control for a moment. Point being, sales have spiked before only to drop again. I'm hoping this (and the fall line-up) means a turnaround for our beloved handheld, but we can never be sure. Keep your fingers crossed.

Re: Nintendo Stocks Continue Decline on 3DS Fears

And yet, unit sales have increased by 260% since the price dropped. Curiouser and curiouser...

 
Forgot your password?
Username :
Password :

Poll

Which group is more ethically challenged?:

Shout box

You're not permitted to post shouts.
Goth_SkunkNiiiiiiiiiiice!07/08/2015 - 2:03am
Andrew EisenThe original movie's Ecto-1 was a '59 Cadillac. I don't know cars but Twitter tells me this is an '84 Cadillac. The original Ghostbusters came out in '84. Cute!07/08/2015 - 1:14am
Andrew EisenHere's the back side: https://twitter.com/paulfeig/status/61862135787884953607/08/2015 - 1:07am
Andrew EisenNew Ecto-1! https://twitter.com/paulfeig/status/61860585924191846507/08/2015 - 12:58am
Goth_Skunk"The New Totalitarians Are Here" from The Federalist. http://ow.ly/Pjz3b07/07/2015 - 11:31pm
MattsworknameThere was a time in america when we needed unions and they served a good purpose, but that time hasnt been tbe case for about 20 years or more. The same could be said of our current system for teachers in higher educatoin,but thats a whole nother story07/07/2015 - 10:22pm
TechnogeekIn large part, though, that's an extension of the level of unjust deference given to police in general. Kind of hard to find any real grievances to defend against when the organizational culture views "complains about coworker" as worse than "murderer".07/07/2015 - 8:45pm
TechnogeekThat's a police union.07/07/2015 - 8:43pm
TechnogeekNo, police unions are worse by far. Imagine every negative stereotype about unions, then add "we can get away with anything".07/07/2015 - 8:43pm
Goth_SkunkeZeek: No, I do not agree they are union members.07/07/2015 - 7:48pm
E. Zachary KnightTeachers unions are just as bad as police unions, except of course you are far less likely to be killed by a teacher on duty than you are a cop. But they also protect bad teachers from being fired.07/07/2015 - 6:29pm
E. Zachary KnightGoth, so you agree they are still union members. Thankfully we have a first ammendment that protects people from being forced to join groups they don't support (in most cases any way.)07/07/2015 - 6:27pm
E. Zachary KnightAh, police unions. The reason why cops can't get fired when they beat a defenseless mentally ill homeless person to death. Or when they throw a grenade into a baby's crib. Or when theykill people they were called in to help not hurt themselves.07/07/2015 - 6:26pm
Goth_SkunkeZeek: Non-union employees have no right to attend meetings or union convention/AGM, or influence policy. The only time they get to vote is whether or not to strike.07/07/2015 - 6:24pm
Infophile(cont'd) about non-union police officers being given hell until they joined the union.07/07/2015 - 4:58pm
InfophileParadoxically, the drive in the US to get rid of unions seems to have left only the most corrupt surviving. They seem to be the only ones that can find ways to browbeat employees into joining when paying dues isn't mandatory. I've heard some stories ...07/07/2015 - 4:57pm
Matthew WilsonI am old school on this. I believe its a conflict of interest to have public sector unions. that being said, I do not have a positive look on unions in general.07/07/2015 - 3:59pm
TechnogeekWhat's best for the employee tends to be good for the employer; other way around, not so much. So long as that's the case, there's going to be a far stronger incentive for management to behave in such a way that invites retalitation than for the union to.07/07/2015 - 3:10pm
TechnogeekTeachers' unions? State legislatures. UAW? Just look at GM's middle management.07/07/2015 - 3:05pm
TechnogeekIn many ways it seems that the worse a union tends to behave, the worse that the company's management has behaved in the past.07/07/2015 - 3:02pm
 

Be Heard - Contact Your Politician