Nintendo shares drop 10%, has 'little to do with company itself'

by Ross Miller { Jan 28th 2008 at 5:00PM }

Despite a knack for printing money with its consoles, Nintendo's investors appeared less enthused today as its stock slid 9.7%, according to Reuters. However, analysts suggest that Nintendo is not culpable, citing a stronger yen and potential overselling by major investors.

"In the current market environment, investors rush to sell at the first sign of negative developments or exhaustion of positive news," said Mizuho Asset Management fund manager Yoshihisa Okamoto. That exhaustion of good news could easily be a pun for Nintendo's ever-present console shortage issue. The stronger yen is a legitimate concern, given it cuts into the profits for major exporting companies (of which Nintendo is one).

Sales of the DS and Wii platforms have largely contributed to the company's meteoric rise in recent years, and its stock has subsequently enjoyed a mammoth increase, as well. Ex-Nintendo President Hiroshi Yamauchi became the third wealthiest in Japan last year thanks to the rise in share value. Markets tend to fluctuate, and we estimate this week's Japanese release of Smash Bros Brawl will likely have a positive impact on Nintendo's stock.

[Via GameSpot]

Tags: business, nintendo, stock

Reader Comments (Page 1 of 2)

Martez @ Jan 28th 2008 5:08PM

And thus begins the slippery slope... into a bigger pool of money later in the year.

Fernando Rocker @ Jan 28th 2008 5:09PM

Nintendo will increase the Wii production in April...

http://www.gamer.tm/news.php?id=2010&filtr=wii

This will help Nintendo on the holidays and summer vacations this year. (I hope they release new colors too)

=)

lawrence @ Jan 28th 2008 6:22PM

gay fernando

Fernando Rocker @ Jan 28th 2008 6:23PM

Good one...?

itouchmyself @ Jan 29th 2008 12:09AM

Too bad everyone who wanted a wii has one

ThornedVenom @ Jan 29th 2008 6:26AM

Gay Fernando? Of course he's happy.

Since gay means happy.

Nick the Hero of Canton @ Jan 28th 2008 5:09PM

In before someone says it:

The Wii isn't a fad. Remember when the DS was a fad?

Fernando Rocker @ Jan 28th 2008 5:13PM

The Wii is similar to the DS... the DS started really slow, with mediocre and gimmick games and only Nintendo made the good games.

Now look at the DS... is the best gaming handheld out there (gaming handheld, not multimedia handheld), with great support, both from third and first party.

Anyone can make fun of the Wii because the lack of good games to date, but the DS is another different story... the games are so amazing... platformers, adventures, RPG's (speacially RPG's), every kid of game... ot just casual, but also a lot of hardcore games.

I hope the Wii turns the same way as the DS.

Slaziman @ Jan 28th 2008 5:51PM

The thing is that most of the great games on DS use a traditional control scheme, maybe with an occasional touch screen gimmick. The Wii doesn't have the buttons for a conventional control scheme.

lawrence @ Jan 28th 2008 6:23PM

fernando eat shiit

Rob Accomando @ Jan 28th 2008 6:55PM

Slaziman, The Nunchuck has an analog stick and the wiimote has the buttons.

There's also the classic controller.

megapenguinx @ Jan 28th 2008 9:12PM

Please ban lawrence. He just keeps bashing

peteH @ Jan 28th 2008 5:12PM

Maybe investors are realizing that 95% of the titles coming out for the Wii and the DS are pure trash. Eventually, that realization will trickle down to consumers who will start looking elsewhere for video game entertainment.

I own a '360, a DS, and a Wii, and there's nothing more I'd like than to see some good titles for the Nintendo systems (I love Nintendo), but the fact of the matter is that there is *mostly trash* for both systems for the foreseeable future. Barring proprietary titles (Metroid, Zelda, SSB, Mario), what does Nintendo have going for it?

Fernando Rocker @ Jan 28th 2008 5:14PM

You are very wrong about the DS... it has a lot, a lot of good to excellents games...

Is the best portable ight now, with the best software available.

Nick the Hero of Canton @ Jan 28th 2008 5:16PM

I have a DS, 360, and a Wii as well.

I can understand your Wii statement, but care to explain how 95% of DS games are trash?

The Artist formally known as Jesus @ Jan 28th 2008 5:17PM

Nintendo has Pokemon

The absolute best game on the DS

peteH @ Jan 28th 2008 5:17PM

Fernando Rocker:

I have more titles for the DS than the Wii, but really, what "must have titles" are there for the DS? NSMB, Zelda, Mario Kart...and? I picked up Phoenix Wright and Hotel Dusk (fun, but hardly "must have"). Am I missing something? Castlevania titles? I dunno.

I think the best thing the Wii can do at this point do is to bring overlooked past-gen titles to the Wii platform (just like RE4 and Okami). Why do you think RE4 sold as well as it did? Two I can think of, FYI, are "Shadow of the Colossus" and "Indigo Prophecy."

peteH @ Jan 28th 2008 5:18PM

To the dude who said "Pokemon" -- I'm older than 12.

DiscoShark @ Jan 28th 2008 5:25PM

So I guess when you hit 12 you can no longer enjoy good games, darn.

LaughingTarget @ Jan 28th 2008 5:28PM

Pokemon is popular with those who owned Blue and Red, you know, the ones in their 20s now. If we can judge maturity via video games, the immature ones pretend to be mature because they don't play games with cute characters.

Fernando Rocker @ Jan 28th 2008 5:29PM

You have every Nintendo first party tiles

Mario Kart DS, Mario 64, New super Mario, Yoshis Island, Yoshi Touch and Go, Mario an Dokney March of the Minis, both Kirby games, Metroid Prime, Metroid Pinbal, Big Brain Academy, Brain Age 1 and 2, Tetris DS, Zelda Phantom, Pokemon, Elite Beat Agents, Meteos, Mario and Luigi Partners in Time, Picross, Advance Wars 1 and 2, Animal Crossing, Nintendogs, Wario Ware, Star Fox

And third party games;

Megaman ZX 1 and 2 (2D, ala school... also the Megaman RPG's, but I dont like that games), Viewtiful Joe, both Castlevania games, A LOT of Final Fantasy games, Tales Series, Secret of Mana, sonic rush 1 and 2, soon Sonic Rpg, soon Kingom Hearts, soon Ninja Gaiden, soon Insecticide, soon Assassins Creed, Call of Duty 4, soon N+, Puzzle Quest, Worms, Lunar Knights, Lost, Trauma Center Magic, Heroes of Mana, Dementium, Final Fanasty Spin offs, Dragon Quest, Geometry Wars, Phoenix Wright, Magical Starsign, Rune Factory, Etrian Oddiseyy, Lunar

And a lot more of games every month, specially a lot f excellent quality RPG's...

And cool aplications too... Jam Sessions, Elektroplankton... soon Guitar Hero.

You ca bash the Wii right now... but not the DS

Anni @ Jan 28th 2008 5:29PM

MOST IRRELEVANT COMMENT AWARD

The article clearly explains the reason for the drop. You're just trolling, sir. And by the looks of the responses to this asininity, doing a pretty good job of it too.

The Artist formally known as Jesus @ Jan 28th 2008 5:43PM

you don't have to be younger than 12 to enjoy Pokemon

I'm 18 and I love the series (games not the show)

Geist @ Jan 29th 2008 2:14AM

Pokemon is a great RPG, just because they tack on some cutesy graphics doesn't make it less so. Just imagine it's called "Battle Monster Blood Battle" or something equally 'mature', and color your DS blood-red. Then you can be 'mature' too.

Ethan @ Jan 28th 2008 5:16PM

I think shares should be held for a minimum of 6 months. This makes a mockery of actual production. Of course, this would be untenable for an individual economy.

But they were probably too high in the first place due to the deluge of good news.

aristokrat @ Jan 28th 2008 6:58PM

The whole market is going down (i.e. Apple took a 35% drop, Google took a big hit, etc.). Everything's cooling down after an hot holiday season that drove up prices, and with a low outlook for many companies in the coming months (not bad outlook, but no "wow" factors too be had for many of them), stock prices are correcting themselves. Like most tech companies, you should be either long or very short on them, since they are more subject to investors whim or lack of knowledge, so it's not unreasonable to expect such a drop, especially with a cooling economy as a whole.

As they say, buy on rumors, sell on news, and there ain't too many rumors in the works right now.

On a side note, I'm curious how the easy mod-ability of the Wii has hurt software sales. For instance, I know most of my friends will be downloading SSBB when it comes out (us poor college students).

Jeff @ Jan 28th 2008 5:17PM

Fernando, can you name some of the kickass DS games? The new blue DS supposedly coming out soon has me tempted.

But the only game I'd want offhand would be one of the pokemon versions =(

Mr Khan @ Jan 28th 2008 5:26PM

Really depends on your tastes, which i haven't gathered from you other than a love of the high-end PC FPS

Games I have that i'd recommend are New Super Mario Bros, Final Fantasy III, Kirby Canvas Curse, Mario Kart DS, Metroid Prime Hunters, Zelda: Phantom Hourglass

Fernando Rocker @ Jan 28th 2008 5:31PM

You can have have every Nintendo first party tiles...

Mario Kart DS, Mario 64, New super Mario, Yoshis Island, Yoshi Touch and Go, Mario an Dokney March of the Minis, both Kirby games, Metroid Prime, Metroid Pinbal, Big Brain Academy, Brain Age 1 and 2, Tetris DS, Zelda Phantom, Pokemon, Elite Beat Agents, Meteos, Mario and Luigi Partners in Time, Picross, Advance Wars 1 and 2, Animal Crossing, Nintendogs, Wario Ware, Star Fox and a lot more...

And third party games;

Megaman ZX 1 and 2 (2D, ala school... also the Megaman RPG's, but I dont like that games), Viewtiful Joe, both Castlevania games, A LOT of Final Fantasy games, Tales Series, Secret of Mana, sonic rush 1 and 2, soon Sonic Rpg, soon Kingom Hearts, soon Ninja Gaiden, soon Insecticide, soon Assassins Creed, Call of Duty 4, soon N+, Puzzle Quest, Worms, Lunar Knights, Lost, Trauma Center Magic, Heroes of Mana, Dementium, Final Fanasty Spin offs, Dragon Quest, Geometry Wars, Phoenix Wright, Magical Starsign, Rune Factory, Etrian Oddiseyy, Lunar

And a lot more of games every month, specially a lot f excellent quality RPG's...

And cool aplications too... Jam Sessions, Elektroplankton... soon Guitar Hero.

You ca bash the Wii right now... but not the DS

Ethan @ Jan 28th 2008 5:59PM

I'll second Kirby Canvas Curse/Power Paintbrush and Picross, but mainly for me it's things on the horizon - the Ninja Gaiden, Professor Layton.

Geist @ Jan 29th 2008 2:16AM

Castlevania: Symphony of the Night, and Aria of Sorrow. Awesome-tastic titles. Also, what Fernando has mentioned.

glass soldier @ Jan 28th 2008 5:18PM

theyre so stupid, wait until brawl comes out than sell

LaughingTarget @ Jan 28th 2008 5:29PM

Not really, investors expect the dollar's continuing slide to more than make up for Smash Bros.' impact on the company as a whole.

glass soldier @ Jan 28th 2008 5:18PM

theyre so stupid, wait until brawl comes out than sell

wootman @ Jan 28th 2008 5:22PM

kickass DS games
elite beat agents, zelda, advanced wars, mario kart DS, meteos, new super mario bros, castlevania, kirby canvas curse, metroid prime hunters, american skateland, trauma center, pheonix write, sonic rush, contra 4, wario ware, and a couple others.
-goes to buy nintendo stock

Mr Khan @ Jan 28th 2008 5:24PM

Well, insane stock highs, though deserved, have to come down a little

A little decline is to be expected, i knew it would come

J @ Jan 28th 2008 5:29PM

It looks like someone went wee-wee on the wii in that picture. (sorry)

Billy Rad @ Jan 28th 2008 5:34PM

What goes up, must come down. Share prices are driven by emotional human beings, ones that are managing 500 million dollar portfolios with the entire shark trader community breathing down their neck. For a professional investor, ego is what's at stake. They use the bank's money, they don't give an ef, the only thing they care about is being on the right side of the order flow so they can boast to all their suit buddies with greasy combovers they sold the top. If the markets start churning/stalling, no one is going to take any chances.

Global equity markets tanked this month... they were going to eventually. The US indices haven't seen significant selling pressure in 5 years! The money got too easy to make, and weak hands are getting shaken out.

Guys, take advantage of the volatility and buy these paniced, profit-taking sell-offs. Now's your chance if you missed them the first time around! Take it easy, though, 2008 is going to be a hell of ride...

aristokrat @ Jan 28th 2008 7:01PM

Ha, your greasy combover statement reminded me of the movie I watched last night: American Psycho. "I'm into murders and executions..."

You're completely right about this being a great investment opportunity. I'm going to buy me some Apple, now that it's down to $130 from $200.

Korova @ Jan 28th 2008 10:59PM

January Effect. look it up.

deaftly @ Jan 28th 2008 5:49PM

NEED MOAR DUCK TAPE!

markhill66 @ Jan 28th 2008 6:09PM

I wish Nintedo would come out with an investment training game.

Can the rising of something (e.g. rise in stock value) be meteoric?

-Mark
http://threevue.com

dan stabbingworth @ Jan 28th 2008 6:36PM

I wish people would stop pimping their shitty blogs in hopes of upping their google page rank.

rokerovakero @ Jan 28th 2008 6:44PM

Toyota also took a hit, according to you people it must for their lack of sequels and gimmick controls...

go read a little of the news before giving you opinion since you are making assumptions without even knowing the facts...

Koopaknight29 - (Nintendo Loyalist) @ Jan 28th 2008 6:48PM

Thus is the natural ebb and flow of a day at the stocks...

Hmm, now might be good time to buy, before it jumps again.

Fatass of Kickassness @ Jan 28th 2008 7:59PM

Lawrence. Shut up. Your posts drip stupidity. You've proven beyond a shadow of a doubt that you come here not to contribute, but to troll. Especially with these last few comments, which are both infinitely worse/dumber than anything Fernando's ever posted, and affirm my original belief that you are, in fact, a 13-15 year old kid who's looking for attention by picking on the village idiot as to draw attention away from the fact that you're likely to succeed him.