Miyamotoo said:
My point is that they said "could be", not that they are definitely will be lower. |
Miyamotoo said:
My point is that they said "could be", not that they are definitely will be lower. |
Ljink96 said:
No, these two things address two entirely different points. A "poor" E3 showing doesn't correlate with software and hardware sales jumping to the top of Gamestop and Amazon. I mentioned Let's Go's initial announcements dropping stock because investors as a whole on Nintendo's part don't understand the industry. Not consumers don't understand the industry. So the first part you bolded references how well the consumers understand Nintendo vs. the second bolded as how well investors understand Nintendo. I don't see how my words got mixed up here. |
...what? Oh god, I feel like either you missed my point, or I missed yours xD.
I know what you were getting at. I'm saying, if you agree that the investors are out of touch, isn't a "poor E3 showing" to the investors a good point for why the stock might have dropped?
For my money, I think the most obvious answer is that investors are not always, shall we say, rational actors. Nintendo shares absolutely skyrocketed when Pokémon GO was a hit, but Nintendo only brings in a fraction of GO’s revenue because it’s only one third of The Pokémon Company and the game was made by Niantic. But that didn’t stop investors from tripling its stock in unbridled excitement all the same.
Here, we’re seeing the opposite. If Nintendo is still projecting it’s on track to hit its lofty 20 million shipped targets, which would bring the Switch to 37 million sold in just two years, that’s still an absolutely incredible pace, even if sales have slowed a bit during the early “down time” in the last few months.
Similarly, Smash Bros. is a huge game to be coming to the Switch, possibly only dwarfed by the pair of Pokémon games, which will bring the handheld series to a console for the first time without minigame qualifiers attached (Stadium, Snap). The only thing Nintendo could announce that would be a sales driver of the same level would probably be a new Mario Kart game, but they have to save something for future years. And looking ahead, they’ve already said that Gen 8 of Pokémon will be coming to the Switch in 2019.
Nintendo
Let's Go Pokemon
I’ve been a registered Nintendo skeptic for many years now, but even I can’t really find fault with them since the Switch has launched, and I think investors are working themselves up into a frenzy here for no real reason. Unless Nintendo is secretly going to whiff on these sales targets, which does not seem to be the case, I see no real cause for concern, especially with two high profile games ahead, and possibly even more not yet announced.
I do think Nintendo will continue to struggle so long as it remains out of the AAA third party race, missing out on spring games like Monster Hunter World and Far Cry 5 at launch. And yet even that situation is getting better, as Nintendo recently got access to the most popular game in the world, Fortnite, and fans have been loving playing that game on their Switch, so much so that it’s a third party title that could even drive console sales because of the benefit of portability.
I don’t know precisely what’s going through investors’ heads right now to cause this stock slide, but I don’t think it's rational. Nintendo has been, and continues to be in a great spot, and it’s hard to see that changing any time soon with the Switch as its flagship.
Miyamotoo said:
You do realise there is quite difference between "there will be lower sales" and "sales could be lower"!? |
And you realize there is a drastic difference between "pale in comparison" and "lower", correct?
AngryLittleAlchemist said:
...what? Oh god, I feel like either you missed my point, or I missed yours xD. I know what you were getting at. I'm saying, if you agree that the investors are out of touch, isn't a "poor E3 showing" to the investors a good point for why the stock might have dropped? |
Well sure, but even that's subjective. I didn't say they couldn't give that as a reason, only that in my opinion it's a silly reason for investors to give that as a claim, when actual sales say otherwise. I'm favoring objective claims over subjective ones. I guess that's what I'm saying.
Megiddo said:
And you realize there is a drastic difference between "pale in comparison" and "lower", correct? |
well that was a mistranslation, it's actually somewhat lower compared to Q1 2017.
Megiddo said:
And you realize there is a drastic difference between "pale in comparison" and "lower", correct? |
pale in comparison/=/expected to be lower, of course there is some difference, but point is same.
I mean it's hardly surprising. They were coming off a huge high after 2017 and the first half of this year has been very weak on the software front no matter any way you slice it. Nothing to really drive hardware, especially with Labo being a near failure or outright failure depending on how you want to look at it. Smash and Pokemon will send the stocks way up again after q4.
Ljink96 said: Well sure, but even that's subjective. I didn't say they couldn't give that as a reason, only that in my opinion it's a silly reason for investors to give that as a claim, when actual sales say otherwise. I'm favoring objective claims over subjective ones. I guess that's what I'm saying. |
Yes, that's why I put it in quotes, because it's subjective. Again, you shouldn't be so adverse to the idea of investors having a "silly reason" when you just said they were out of touch.
Though, quite frankly, I'm not sure how objective you're actually being. I could be wrong, but don't investors calibrate the stock value based on what they're working with now, and not in the future? I'm pretty sure no matter how you cut it, a lot of people thought that E3 presentation was poor, and if they were judging what the stock should be based on that, it's not entirely unreasonable. Just because x big games come out in y months doesn't mean the stock should automatically stay the same or be higher. The stock will probably rise when the releases get closer, and I don't see that as a "blindsiding" of their unreasonableness, more like just common practice.
Mr.GameCrazy said:
I believe Labo was released in April. |
You're right!
But it applies anyway, because actually the peak was in March, and it went down after that (and it kept going down). Labo is just one thing anyway, it shows that the future isn't as clear as almost everyone thought a year ago. Between the flop of Labo ("the next big thing!"), and the boring E3, the future of the Switch doesn't seem golden lately.