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Nintendo share prices hit five-year low

Nintendo's newly-unveiled Wii U has consumers resisting consensus and the games world's most esteemed journalists descending into schizophrenic fits of praige (praise/rage, look it up), but shareholder confidence in the company was definitively lowered by their E3 showing. Nintendo's share price fell to the lowest in over five years following their press conference, with analysts attributing the drop to disappointment in the new console.

The 5.7% drop wasn't the most dramatic hit the company's shares have taken in recent years – 2009 saw prices fall by 12% amid recession-hurt Wii demand – but at ¥16,930 ($US212) per share, the company's stock hasn't been worth less since before the launch of the Wii. It seems shareholders lack confidence the Wii U can repeat its predecessor's global impact: “There were high expectations from the new version of the Wii and this fell far short,” Tokyo market analyst Yusuke Tsunoda told Bloomberg.

No price revealed for the Wii U yet, but Satoru Iwata said the company doesn't intend to sell the new console for as low as the Wii's $US250 launch cost. Reggie Fils-Aime was cagey on this matter, telling journalists,
"You're talking price and I'm talking value... What I'm saying is that it's going to have a fantastic value.” With exact figures being a guessing game, UK retailer Zavvi has opened preorders at a seemingly unlikely £399 ($654).

Does this news hurt your confidence in the new Wii, or are you just eager to scrape together some cash and buy shares in Nintendo while the getting's good?

June 8, 2011

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17 comments

  • Milan32 - June 10, 2011 3:30 a.m.

    I remember the wii being reported as a huge disappointment: it's just a gamecube with a gimmicky controller facing up against far superior specs in the PS3 & 360? Historically nintendo have made a profit on their consoles from day 1. It makes sense to leave the tech battle to microsoft and sony while nintendo concentrate on current gen affordable components leaving those rivals to launch at an expensive loss. How may people own a ps3 & wii or 360 & wii? Nintendo innovate and as long as you can't play mario, zelda, metroid etc on any other platform they'll always have a market even if its as the 2nd machine of choice for some....
  • StickyLungs - June 10, 2011 1:57 a.m.

    Just like every console I buy, I'm gonna give it a year and see how it does. If there are enough compelling exclusive games, I'll wait for the revised version of the console or a price break.
  • silax - June 10, 2011 1:42 a.m.

    only reason shares are dropping, cause people dont understand games, they see a lack of casual and they go on no nintendo doesnt knoiw what its doing sell before its too late!
  • wormytables - June 10, 2011 1:34 a.m.

    seems to me that the share price would have dropped through nintendo basically banishing the ds, dsi and wii from their e3 conference, instead focussing on the ailing 3ds and the nebulous wiiu... not a lot to invest in now they've put the cash cow out to pasture!
  • ThatGuyFromTV - June 9, 2011 11:02 p.m.

    Actually I have a question, when exactly did Ninty's stock skyrocket with the Wii? after the announcement, near release, or after the massive sales? Did anyone know how much interest there was in the Wii?
  • ThatGuyFromTV - June 9, 2011 10:59 p.m.

    Yeah, Nintendo did a crap job of showing the thing off, so some of the people probably aren't convinced. Plus I think maybe people are woried that Ninty is gonna pull what Sony did with the PS3, AND it's different from the standard Xbox 360 and PS3. Lot of different reasons why this might have caused a dip in the stocks. If the consumers' reactions are anything to go by, the stock will skyrocket once the sales start flying in. Time will tell. andybeans, I believe this is where you start trolling.
  • ollyn - June 9, 2011 10:10 p.m.

    The Wii when it was shown looked like a lot of fun (Almost Toy like), the WiiU looks interesting. The difference will be massive in sales terms. I might buy it (Price point dependant anything over £250 probably not) but then again myself and most posters on here are gamers and love gaming of almost any kind. I have worries about a very short lived 3rd party support especially if this doesn't gain traction like the gamecube failed to do (great console). The fact is the stocks fell because this won't sell like the Wii did and I can only see it being a smart move by shareholders.
  • Odpaterson - June 9, 2011 9:48 p.m.

    I have to say, although I think the WiiU has fantastic potential, I can totally see why people have these doubts. The reveal was confusing and simply didn't show us any proof of what this hardware was really capable of. Nintendo and the 3rd parties didn't show any games made specifically for the system aside from a few tech demos. I do have faith that it'll deliver in the end though. On a different note, I think people are really under-estimating the power of this hardware. During the press conference, the bird demo gave subtle hints towards a hell of a lot of power. After a second look, I noticed a whole lot of indirect lighting and sub-surface-scattering going on. Just to be clear: these lighting techniques have been reserved for CGI until recently (Frosbite 2 and Cryengine 3 have dabbled in them). Either it has much more power than we give it credit for or that trailer was very unrealistic target footage. Anyway, I do hesitate to doubt Nintendo, given their history.
  • shadowreaper72 - June 9, 2011 9:41 p.m.

    Yeah nobody cares what stockholders have to say. We know all about gaming. They dont.
  • PushesPaperInACircle - June 9, 2011 9:38 p.m.

    Hey, I didn't think the Kinect would sell either, so I guess I'll just stay mum.
  • RODTheMaster - June 9, 2011 9:31 p.m.

    It's far too early to make any kind of concrete judgements on the Wii U's success. With only a handful of tech demos, it's had to predict its future. If anything, the supposed support of 3rd party devs shows the system's potential. Shareholders should wait a few months at the least to value the Wii U.
  • PimplesInYourAsstista - June 9, 2011 9:20 p.m.

    Considering Nintendo was making oodles of cash on the Wii, its not a suprise.
  • bobob101 - June 9, 2011 9:19 p.m.

    well, if we are talking price, a console over 299.99 is something i have to pass on.
  • DualWieldingIsNotFeasible - June 9, 2011 9:17 p.m.

    None of the casuals who bought a Wii are going to invest in a WiiU, especially if it's more expensive than the Wii was. The Wii was a fad that has now passed. However, if Nintendo moves back toward marketing to actual gamers-and games for the WiiU reflect that-then I think its sales will be just fine. Maybe not as ridiculous as the Wii's sales figures, but good enough to be considered a success.
  • DEsMONd - June 9, 2011 9:16 p.m.

    Shows you how dumb Stock market traders are!
  • Crabhand - June 9, 2011 9:08 p.m.

    I think it's a little unfair. The 3DS looks stronger now than before, and third party support for the Wii U seems to indicate it will have a good variety of games. I'm excited to see what is to come with the system, even if the price is a little higher.
  • FOZ - June 9, 2011 9:06 p.m.

    Why would investors affect my opinion? Seeing as stocks now drop because games don't have an arbitrary 95 rating on metacritic, stockholders' opinions seem less relevant than ever. I'm the one actually playing the games, not dreaming about how much money my stock will be worth when the next Wii Sports comes out. "These captcha's are getting harder to read" rojobas said.

Showing 1-17 of 17 comments

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