Sephiran said:
Selling consoles at discounts is great for consumers but not for investors or the companies themselves. For example Nintendo's market cap is imploding because investors know that price cuts are the only thing that can move console sales soon, which means imploding profits from those companies, which means their money is 100 times better spent on AI rather than console companies with rapidly untenable profit outlook. |
That's not the reason their Stock is falling. Console sales is actually only a very small portion of their profits and investors know this. It's games and services that bring in all the money, and Nintendo Switch 2 game sales are much much lower than PS5 and it's subscription service is cheaper and less successful than PS +. Also. their stock had been going up for awhile and was bound to drop at some point anyway
