Nintendo Stocks Lose 5 Percent After TGS Announcements

September 13, 2011 -

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.

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Comments

Re: Nintendo Stocks Lose 5 Percent After TGS Announcements

Why? Nintendo why? Nintendo again what are you thinking you have games you refuse to import here that already have translations for English but yet you no longer want to support the Wii and then you wonder why your losing money

Re: Nintendo Stocks Lose 5 Percent After TGS Announcements

What? We're finally getting some awesome games on the 3DS and you're still complaining? Man, you just can't please some people. And the 3DS camcorder update is coming, and Four Swords, and Skyward Sword, and...

well, I'm not going to going to reprint the whole press release. Let's just say those investors are going to be eating their words.

Re: Nintendo Stocks Lose 5 Percent After TGS Announcements

I think what they were referring to is the apparent flat-out refusal of Reggie Fils-Aime to approve localization of The Last Story, Pandora's Tower, and Xenoblade Chronicles for the United States.

I have to admit, it is pretty freaking stupid. You'd think practically free money would be good for a business.

 

 

 

 

 

Re: Nintendo Stocks Lose 5 Percent After TGS Announcements

Yikes, but I wouldn't worry. They'll figure it out and they have a huge fanbase that's ready to buy again the minute they get back on track, even if they get abandoned for a while. They came back from the gamecube swinging, and I see a new console that pops onto the scene after the ps4 etc. that brings them right back into the competition.

-Austin from Oregon

Feel free to check out my blog.

Re: Nintendo Stocks Lose 5 Percent After TGS Announcements

Eh... I'm thinking the come back won't be quite that soon. Right now too many things are going in the wrong direction, and it's not all a new problem. After the Wii's third party support let a lot of early buyers down with games being delayed for months and in some cases years or outright canceled, many being pale shades of what they should have been, and the flood of shovelware to sort through...

More than anything, I think this is the problem the 3DS is already facing, and I think their new console will face: Having awesome promise in your hardware isn't going to sell the system because the Wii disappointed a lot of people who bought it on that promise. Looking at their early lineup or that big article in Game Informer last month and seeing a short list of first party games and junk reinforces the idea, the Wii launched the same way. The people who felt let down by the Wii's first year or two are going to be suspicious of the 3DS going down the same roads.

I honestly think they're going to be going back to the N64/Gamecube days, Nintendo's going to have at least one hard console generation. Though, honestly, playing third party didn't hurt them all that much, just like this generation any damage its done to Sony vanishes next to the damage Sony did to itself or took from its security issues.

Re: Nintendo Stocks Lose 5 Percent After TGS Announcements

Assuming the console is anywhere competitive with whatever sony and microsoft put out, they can turn it around just like ps3 sales, once they get their own little big planet.

Really, as much as I'll buy the new sequels, nintendo just needs 3-4 new franchises that do something new and remain exclusive on their system.

-Austin from Oregon

Feel free to check out my blog.

Re: Nintendo Stocks Lose 5 Percent After TGS Announcements

The Wii's dead. The cycle's over. We got Skyward Sword coming in, and that's it.

No, what the investors want is Mario/Zelda/Metroid/etc on iOS/smartphone. And they're not going to be happy until Nintendo says, "We give up. The 3DS is dead, and we surrender to Apple." Do you think that's ever going to happen?

Re: Nintendo Stocks Lose 5 Percent After TGS Announcements

Um, yeah, good job speaking for all of us, as I'd rather that all stay the hell off the Ios crap.

I doubt Nintendo is going to give in that easily

 
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