Nintendo stock rises following 3DS announcement

by JC Fletcher on Mar 24th 2010 12:27PM

You may have been a bit bewildered by Nintendo's out-of-nowhere announcement of a new DS a week before the North American launch of the DSi XL, but one group seems to have no issues with the timing or technology of the Nintendo 3DS: investors.

Marketwatch reports that Nintendo stock rose 9.7 percent yesterday in response to the hardware announcement. While it's hard to gauge exactly what it is about the 3DS that has inspired such confidence among investors, we would guess it's less about the current 3D trend and more about the fact that Nintendo announced a new thing, and Nintendo things have been good for stocks in the last five years or so.

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Tags: 3ds, DS, nikkei, nintendo, nintendo-3ds, stocks

Reader Comments (57)

It's Nintendo. Everyone loves their stuff!

@ShadowflareXIII

If they said something like that about their dog, people would assume it's a teaser for the next Nintendogs games and then stocks would indeed rise again.

Seriously they basically just told everyone that ran out to buy the new extra large DS to go screw themselves with this announcment and yet their stock still climbs? Next I expect them to dress babies up as Boswer and stomp on them just to watch their stock rise with every crunched skull.

Tell that to the Gamecube...

So PN04 you want Nintendo to forbid people from buying the DS altogether?

There won't be as much overlap between early 3DS adopters and DSiXL adopters, i think.

You mean the 3DS isn't even out yet and its already printing money!?

It prints money in 3D!

I was just thinking about that. Nintendo can now make money just talking about things they will show in the future.

Technically they don't get money if their stocks rise unless they release more stocks. But their investors that sold stocks are making money at least in the short run.

Doesn't this mean it prints money in 4D?

http://i41.tinypic.com/2im5kjn.jpg

Not only that, it's printing out money for ME. I've had 55 shares of Nintendo for a while just waiting for an announcement like this.

They know people will buy the shit out of the 3DS.

But instead of controllers being thrown at the screen, this time, people will suffer from horrific seizures due to the 3D effects!

/s

No, in all seriousness, I'm interested to see what Nintendo has up their sleeve, they could be on to something...And when Nintendo's on to something, that's a really good thing.

He's not being figurative. The 3DS will take a dump, and people will pay to take home some of those brownies. . . .

Let the phenomenon begin. Whether this is good or bad, I have yet to know.

This is starting to get disgusting. I thought Apple was bad with their several generations of iPods.

This is not a revision, it's the next generation of the DS.

The next generation of handhelds doesn't start until Sony says it does.

"The next generation of handhelds doesn't start until Sony says it does."

I don't know, Nintendo basically invented the handheld gaming market, I think they can decide.

Obviously sarcasm does not resonate on the internet.

"The next generation doesn't start until Sony says it does." - I think Krazy Kutaragi said that

So was this the point of the weird out of the blue announcement? Why so early with the 3DS announcement? I thought they don't do that anymore out of fear of competitors copying them.

They didn't learn from the Micro debacle and want the DSi XL to be the lowest selling DS revision?

There was a Micro debacle?

They're probably confident in their patent portfolio to worry about that, even though it's inevitable.

E3 2010: Sony announces PSP2 will be 3D-capable (but won't have a prototype unit to demonstrate).

Satoru Iwata stated that the marketing of the DS "must have deprived the Micro of its momentum" in the marketplace and he admitted that Game Boy Micro sales did not meet Nintendo's expectations, commenting it "failed to explain to consumers its unique value".

Nintendo's thought process seems to be based around servicing every crowd. They tried penetrating the young teen market by introducing a nicer looking customizable GBA. And now here they are trying to attract the elderly with the DS XL.

It's not a bad move their part because, even if the console doesn't sell as well as they hoped, at the very least their trying to broaden their demographic.

I mean hey it's better than releasing a pink PSP and saying "LOOK IT'S FOR GIRLS NOW!"

Haha, isn't that basically what Tecmo is doing with their new DOAX game?

"They tried penetrating the young teen market... and now here they are trying to attract the elderly"

Nintendo loves everyone!

started to buy some stock in Nintendo a few years back.....kinda wish I did now...

A few years back...when the Wii came out? You'd think that would be a good time to invest in Nintendo.

2003 would have been the best time. Right after that crappy E3 of theirs that year, when it really looked like they had nothing up their sleeves, or at least nothing of note.

Shouldn't this cannibalize XL sales? Really, who's going to buy an XL knowing the 3DS is around the corner? But I'll wait for the 3DS Super-Lite!

...I'm lying, I'll be first in line for this thing! Finally a reason to upgrade my DS Lite! Sorry DSi and XL you're not worth my cash! Hopefully this means the PSP2 is around the corner.

Unfortunately, PSP2 will only come out when Sony has a good idea how the PS4 will look.

It's unfortunate, yes, but a lot of gamers don't even come to Joystiq or any gamer site for that matter, so therefore, they have no knowledge of the 3DS.

And honestly, who was REALLY going to buy the XL, even if there was no 3DS? I mean, was any true gamer gonna buy one?

@ Dr. Blight

You're right. It would only make sense that Sony gets their vision of the PS4 established before they go to work on the PSP2, which is probably for the best.

Trust me, Sony isn't going to let Nintendo have the shiny new handheld title for long. They'll probably have something out shortly after the 3DS. I'll give them about 9 months to a year after the 3DS is out... I know they have a PSP2 prototype laying around somewhere haha. Time to start polishing it!

Also they probably already have an idea on how the PS4 will look! At least I hope they do!! Don't these companies start working/thinking about the next console right after a new one is released?

Oh, I'm sure they do, but the software and how they plan for the two devices to integrate is the key concern.

This, along with the new announced Pokemon game coming out this December. No doubt, the next Pokemon is a launch title for the 3DS.

Nintendo has already won the next handheld war before it even started.

While SoulSilver is the pinnacle of all things Pokémon (so far), it would be physically impossible for me to stay away from a Generation V game for more then a month. It doesn't matter if all the new pokémon suck or if there is nothing new, I will buy it. What other game can pull me in for 100 hours+ per game and not bore me to death?

Only 100? I have almost 700 hours in Diamond and over 500 in Emera- erm, I mean... Pokemon is for kiddies and nobody over 10 should be playing that >_>

I usually wait awhile before I get a new handheld, but if the next Pokemon is a launch game, I'll be in line day one.

They said that Generation V is going to be on this generation of DS

I just hope Nintendo stock didn't rise when the Virtual Boy was announced too

I'm pretty sure they won't make the same mistake again though i.e. make a DS that induces instant strokes

In order to see why Nintendo does so well financially, you have to look at Nintendo for the company that it claims to be: a toy manufacturer. Unlike Sony and Microsoft, Nintendo is much more open to trying new things that will be fun and exciting, regardless if it seems odd for video games. Because of its philosophy of being more in the toy business than in the more strict video game business, it has found success with technologies that had once been feared as being "gimmicky." I think Microsoft (and Sony to some extent) has learned that it needs to invest in new ways of entertaining consumers; and its starting to stray away from the typical structure that video games have been thought of(hand operated controller and television). Project Natal SHOULD BE A BIG REASON TO BE EXCITED IN MICROSOFT'S FUTURE EARNINGS POTENTIAL. It shows a radical departure from typical video game activities. Also, it seems like it will be easy to operate, which I believe is a required quality for a product to be successful in the market (look how easy the Wii is to operate).

You're close. Nintendo sees themselves as being in the entertainment business, whereas Sony and Microsoft see gaming as a technology industry.

It's almost like investors had no idea Nintendo was going to release a new handheld sooner or later.

Investment advice! Buy some Sony stock now. Wait until PSP2 bubble. Cash in.

Sony's stock isn't affected by it's handheld nearly as much as Nintendo's stock is affected by this announcement.

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Nintendo stock rises following 3DS announcement

Reader Comments (57)

Posted: Mar 24th 2010 12:32PM Spike Spiegel Humble Bounty Hun said

Posted: Mar 24th 2010 12:50PM Raiki said

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Posted: Mar 24th 2010 1:51PM OnToGloryReturns said

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Posted: Mar 24th 2010 12:38PM TwEE said

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Posted: Mar 24th 2010 12:49PM Shadowbender said

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