Wow, not suprised however I disagree with Nintendo's choice to cut the 3DS price that drastically. Stocks are going to drop further and further up untill now Nintendo has never sold hardware at a loss. (PS does anybody know for sure that 169.99$ is a loss?) Investors are not going to be happy seeing less hardware profits. Nintendo will need to sell a butt load more software and hardware to make up for that 80$ loss on every unit (Compared to 3DS's current price).
As for the stocks going low, it was inevitable and I predicted 3DS wouldn't perform up with DS's standards. I also doubt WiiU will either meaning stocks will take yet another hit.
Nintendo grew too strong too fast and got cocky. They used to be king in the 90's they were crowned king again and they thought that 3DS and WiiU would fly off shelves. 3DS is proving a very hard sell and Nintendo should have predicted lower sales, it didn't help that Nintendo did pretty much zero advertising expecting the unit to sell itself.
In the end I see very hard times ahead for Nintendo, WiiU will not sell nearly as well as Wii did and I don't think 3DS will fly off shelves even after the price cut. Investors will continue to sell shares and stocks will continue to plummit. Infact I'd predict Nintendo will be in a worse situation next year then the whole GameCube era unless they have something radical and drastic up their sleeves for WiiU.
In the end this was unavoidable. If Nintendo never announced 3DS and PSVita hit the market un challenged Nintendo's stock would have plummited. If Nintendo released 3DS alongside PS Vita stock would have dropped. If Nintendo released 3DS at a loss stock would have dropped. Either way with 3DS stock was bound to take a hit.
Then WiiU, if Nintendo waited for the competition to announce hardware, stock would have dropped. Wii sales have been dipping this last while, lack of new hardware announcement would have made stock continue to drop. When Microsoft and Sony announce more powerful hardware stock will drop. When WiiU launches it can't possibly eclipse Wii so stock will drop.
Its a double whammy, nothing Nintendo could do, they had to try and surpass two of the greatest game machines ever built Wii and DS. They were expected to produce superior hardware, they couldn't possibly live up to their reputation. Nintendo will not die and I doubt anyone will aquire them even if their stock continues to plummit. They have so much wealth built up and so many franchises and assets that the company is not in any real danger.
I think 3DS will pick up sales once the price cut is put in place due to new software etc...etc.. then WiiU will launch at a cheaper price and hopefully not have as tough a start as 3DS did. Then in a few years Nintendo will climb the ranks of the stock market yet again. I just think they have a tough few years ahead of them. Especially if WiiU can't compete with Nex-Box or PS4!
-JC7
"In God We Trust - In Games We Play " - Joel Reimer
