Nintendo shares have dipped significantly for a second straight day following the announcement of a its next generation home console, Wii U.
The company's shares were down 5.2 percent as of midday Thursday, following a 5.7 percent decline on Wednesday that saw Nintendo's stock fall to a five year low.
"It is also a reflection of structural issues caused by a transformation within the market," he added.
CVG went hands-on with Wii U this week in LA. See what we thought of it here.
Comments
21 comments so far...
Headsrinker on 9 Jun '11 said:
proof that most people are as underwhelmed about this console as i am.
spam23 on 9 Jun '11 said:
There's a lot of confusion still surrounding this Wii U, many people don't understand it's not a controller for the Wii as they never introduced or even spoke about the console itself. It was a massive oversight on Nintendo's part and something they need to address soon. Their current consumer base (children and the elderly) aren't great on searching information out themselves on the internet, they need to be told straight and explained to slowly.
boskersrevenge on 9 Jun '11 said:
Well, it seems this is linked to the Peeyoo and I am not that surprised. I don't think their show was brilliant as for the majority of the new console's reveal I thought it was just another Wii accessory.
I think what Nintendo need to do is get some of the games out there - show us what the actual box can do. We know about the controller now, tell us about games.
cult on 9 Jun '11 said:
Sell, SELL!
Im sure they make enough profit even if its only a wii 1.
Ill get me coat.
SkyBlueJukeBox on 9 Jun '11 said:
Like the guy said, stocks in game companies have been transformed by Activision's policy of producing franchises that sell loads. When combined with the Wii's dominance of the casual market, this led to an understandable (but stupid) expectation from shareholders (most of whom focus on the sales of the games, rather than the quality) that Nintendo would produce another console like the Wii that would target the casual market. This would still have led to a slide in stocks, because the casual gamers who rushed to purchase the Wii are the ones who are least likely to buy new consoles.
bazz2k on 9 Jun '11 said:
I think the problem lies with the innovation and how nintendo can differentiate their machine and gain market share in an already overpopulated area!
This console will spark many copycats and where as the Wii had a big head start and sony and MS were behind the curve of appealing to the casual crowd this Wii U does not have this going for it.
The Wii U controller is innovative but is easily copied and Nintendo already have a competitor in the Vita which has most of the functionality of the Wii U controller as well as being a portable device in its own right! Plus will be released well in advance of the Wii U.
investors have lost faith with nintendo because of there distinct lack of organisation regarding the online side of the business and with the way they actually alienate third party developers from developing for their consoles with their innovative ideas that don't fit with the classic way of making games play.
Also to be honest the spec from the look of it is very underwhelming and although it is going to be the best graphically this will only be for a short while before sony or MS will trump them surely giving a lack of foresight for the future!
This i feel may be a tough time for nintendo and i for one will be glad to see them knocked from their perch. I have not enjoyed the Wii years one bit! Casual games = poor games in my mind!
bickle77 on 9 Jun '11 said:
I know everything, and even I'm confused
rbt2 on 9 Jun '11 said:
I'm no stockbroker but don't shares fluctuate?
Athrun888 on 9 Jun '11 said:
I wasn't around the net at the time, but I've seen people elsewhere mention a similar thing happened when the Wii was unvieled, and we all know what happened there...
dannyhulse on 9 Jun '11 said:
I believe that's how it works
Now I may be wrong but, didn't Nintendo's shares drop when the Wii was anounced? I bet those people felt pretty stupid afterwards.
EDIT: ninja'd!
bazz2k on 9 Jun '11 said:
Yeah but a 10% drop in two days is really bad! You'd expect +/-1% a day would be bif movement in a company of nintendo's size but 10% is a huge chunk.
A reported 2.2 million shares were sold since the Wii U was announced -- this compares with a previous a six-month daily average of roughly 720,000. This means the investors are runnong scared because they are selling whilst the stock is at a low and their is no reason to sell at this point unless you believe the company is going to struggle.
rbt2 on 9 Jun '11 said:
Gotta be honest Bazza, you lost me after your 1st sentence.
I just wanna play the games.
bazz2k on 9 Jun '11 said:
Apologies for the terrible grammar used in my posts! PROOF READ REMEMBER TO PROOF READ!
rbt2 on 9 Jun '11 said:
I wasn't talking about your grammar, she's got nowt to do with it. It's just than when I see anything with a + or a - or a % or a 10 in it then I suddenly start feeling drowsy.
bazz2k on 9 Jun '11 said:
haha - i know what ya mean! I know you weren't pulling me up an my grammar I just re read what i'd put and it looked like i'd typed it with my flacid cock i'd made that many mistakes!
ricflair on 9 Jun '11 said:
To be honest, I don't trust stock markets to pick what is going to be a successful games machine. It will live or die by the people playing it, liking it and buying games for it. The markets didn't predict the success of the wii or DS - and a lot of people on this site didn't like the wii, yet it still massively outsold the opposition, in a more competitive market than we've had before.
I don't think there is a single thing they could've realistically come up with to make people really go wow besides a more powerful version of a PS3 or 360, which I'm sure is exactly what the PS4/new xbox will be and Nintendo didn't fair well when they last had a powerful console (GC).
And if they'd come up with a mega powerful, true next gen console that cost £500, the average guy on the street wouldn't have given a s**t and the stocks would probably have fallen even further. It would have cost them an absolute s**t load in R&D, probably lost money on each model sold and the shares probably wouldn't have bounced back for years. Sony said something about Vita making profit in three years and they'll lose money on each unit sold, so who would buy shares now when it's losing them money?
El Mag on 9 Jun '11 said:
It's alright, if gets any worse they can always go on the next series of Dragons' Den. I just see Reggie with a cardboard Wii U control calling Bannatyne a t**t for not getting in on the deal.
rbt2 on 9 Jun '11 said:
And on that note, as far as this thread's concerned.....I'm out!
sakaspuds on 9 Jun '11 said:
the problem is, the wii u don't come out till late 2012, if it ships on time that is, whats happening between now and then? 3ds is whats happening, so as 3ds sales have not been as good as expected people will be selling shares in nintendo, and moving them to something else in the hope they get a better return, this will drive the price of nintendo shares down, and when the price is low enough they will bulk buy just before wii u launch and make a killing, because people will buy wii u, its inevitable, but theres not much point in investing money in nintendo until wii u is on the shelves, thats my take on it
AJB123644 on 9 Jun '11 said:
I can see quite a bit of potential in this and already Sony have been saying about looking into using the PS Vita alongside the PS3 and only yesterday OnLive were trying to suggest they can do the same sort of thing.
I think that in itself points out how silly some of these shareholders are being.
Anyway, I think it might be time to purchase some shares this rate.
milky_joe on 9 Jun '11 said:
This is mirroring the response to the DS and Wii reveals almost perfectly. And we all know what happened next... Lot's of consoles printing money.