When Japanese gaming giant Nintendo unveiled their Wii U console at this year’s E3 conference in Los Angeles, the company’s shares price dropped. Clearly the Wii successor was not what Nintendo’s investors were expecting.
Now, shortly after their Tokyo Game Show press conference, Nintendo’s shares price has fallen by a further 5%. The drop is being attributed to what investor’s consider was a lacklustre TGC presentation on behalf of Nintendo. Despite the company’s debuting of a new Monster Hunter, new 3DS colours, an impending 3DS firmware update (that enables 3D video capture on the handheld – neat!) and a new Mario Kart and Mario Tennis, investors weren’t happy.
According to a Japanese investment firm, Nintendo’s target market is getting its gaming fix from other devices: “Nintendo succeeded by pulling in people who weren’t gamers and their needs now are no longer being filled by Nintendo, they are happy playing games on their mobile phones”. How does Nintendo feel about branching into the mobile games industry? Nintendo President Satoru Iwata is completely against the idea.
Speaking to Nikkei, Iwata said that if Nintendo began creating mobile games, then the company “would cease to be Nintendo”. He admitted, however, that generating Nintendo mobile games would be “the correct decision in the sense that the moment we started to release games on smartphones we’d make profits. However, I believe my responsibility is not to short-term profits, but to Nintendo’s mid- and long-term competitive strength.”
Nintendo’s stock price has fallen by 84% since its highest point back in November 2007. It’s also important to remember that stock prices go up and down all the time for companies; a drop in price does not spell certain doom by any means so take this as you will.