The stock market is driven primarily by sentiment rather than rational thought or facts, and right now many investors have taken a very negative outlook for Nintendo. While I’m not certain that we are near the bottom for Nintendo yet, I think we’re at a point where Nintendo will be worth significantly more in the not too distant future than they are today ...
Essentially, Nintendo is the largest game developer and publisher in the world (by sales), the largest dedicated gaming manufacturer in the world, and is a company that produces substantially larger profits off of platforms with similar sales to their competition. While they’re currently struggling with the transition between a generation with unexpected and unprecedented success (for Nintendo), being that no console manufacturer has seen a decline in hardware sales of 50% or greater in a generation, their platforms will probably end up being very successful and produce immense profits for Nintendo by the middle of the generation.
In contrast to this, Nintendo's share price has fallen to a level (when you factor in inflation and exchange rate changes) that is approaching the level that was the "darkest period" in Nintendo's history in videogames; where their poor sales performance of the Gamecube, and Sony entering into the handheld market had many/most people anticipating Nintendo leaving the console market.
Now, I'm not suggesting you "buy Nintendo now" but we could be hitting a level in the not too distant future where people will be kicking themselves for not buying it 12 to 24 months from now.
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