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