Is Wii demand waning? Stock market says "yes"

[NJ5]

BengaBenga said:

FishyJoe said:

Pay no attention that the Japanese stock market is down 4%. Sony is down 4%. Just about every Japanese company is down 4%.

But yeah, some guy said it so that must be the reason it's down 4%.

 

This.

All panic for nothing. Investors usually follow market trends. There are not a lot of investors that actually know whether demand for Nintendo product is low, they just follow the trend for consumer electronics.

The Dow-Jones slummed on lower consumer demand, which could affect Nintendo. Japanese investors just followed the US. This doesn't mean it actually will affect Nintendo. If it will it will mean a lower demand for videogames across the board. Pachter btw thinks that in a recession more people will buy videogames, because value for money is bigger than say a day in Disneyland.

Not all the panic is for nothing, although some of it is. There are two problems for Japanese companies in general:

- reduced demand for products (doesn't seem to hurt Nintendo so far)

- unfavorable exchange rates for exporters (greatly hurts Nintendo)

I'm not going into details here as those are all in the article about the economic crisis.