A rather dire report from Reuters entitled "Nintendo faces end of era after 3DS flop" details the reaction from investors after Nintendo's Tokyo Game Show announcements today. To say that investors are not impressed with what Nintendo announced would be an understatement; analysts and investors balked at the line-up, calling it "lackluster and largely irrelevant" in a space where free games are played on the web, Facebook and hand-helds powered by Apple and Android technology.
The negative reaction saw the company's stock slide 5 percent. The company has lost around 50 percent of its share price this year.
"I don't think the new games will make any difference," chief fund manager at Ichiyoshi Investment 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," he said.
"The only possible way for Nintendo to revive would be to stop concentrating on mobile games and switch to Wii-type games for the whole family," said Makoto Kikuchi, CEO of Myojo Asset Management. "However, at the moment, I can't see this change coming."
"From the end of this year to the beginning of next, we are planning the kind of extensive line-up that has probably never been seen before in the history of video games," Iwata said at the press event. "We will make an all-out effort to see that the 3DS sells enough to become the successor to the DS," Iwata said.
Nintendo announced a new analog stick attachment that snaps into the back of the 3DS case. It also adds an additional trigger button. It will be available in Japan on December 10 for around 1500 yen (about $20). The company also announced that many of the new games revealed at TGS would support the peripheral including Monster Hunter Tri G, Biohazard: Revelations (Resident Evil: Revelations), Ace Combat 3D, Dynasty Warriors, Kingdom Hearts and Metal Gear Solid: Snake Eater 3D.
Despite the negativity in most circles, Macquarie Securities analyst David Gibson still expects the 3DS gadget to sell about 14.5 million units over the year.
On a related note both Capcom and Square Enix saw their stock take major hits this afternoon for their association with Nintendo and the 3DS. Capcom lost 8.3 percent to land at 1,974 yen, while Square Enix lost 3.9 percent to close out at 1,468 yen.
Thanks to Andrew Eisen for the tip.