Nintendo Stock Drops 10 Percent Following NDS Announcement

[Ail]

nordlead said:

Ail said:

Acevil said:

Scary to think what will happen within one full year after the 3DS launches. (Logic would say it will go up...)

doubtfull.

3DS revenues will go up but Wii revenue will keep going down and will offset it.

Nintendo share price got crazy high because both the DS and the Wii were performing like  crazy and investors were starting to think the sky was the limit.

On top of that Nintendo ( which gives conservative estimates ) kept easilly beating their projections every year.

Now the same company that gives conservative projections is going to miss its profit target by 50%. The stock is going to get hammered and even if the 3ds works very well Nintendo isn't going to go back anytime soon( if ever) to the level it reached a couple years ago

this is exactly why if you want to invest in nintendo you do it in a few months when stock are the cheapest and you are going to have to hold on to them for at least 2 years when Wii2 is released and takes off. If both 3DS and Wii2 are in their peak years and you sell you are looking at a hefty profit. I wouldn't expect gains like the DS/Wii combo did, but it should beat the market.

This is of course assuming that the 3DS and Wii2 are a success

I think that's assuming a lot of things. That for example a console that wins a Gen will win the next gen.

Or that smart phones won't start cutting into 3ds profits..

 

PS : Lets not forget that many of the Blue Ocean folks have quickly moved from the Wii to facebook gaming.....