Nintendo Co. fell to the lowest in more than five years after the unveiling of its high-definition video-game console prompted some analysts to question the company’s ability to repeat the success of its Wii model.
The world’s largest maker of video-game players plans to begin selling the WiiU next year, Nintendo said yesterday at the annual Electronic Entertainment Expo in Los Angeles. The motion- sensing device, using a proprietary optical format for games, will be able to play all game titles made for the Wii, said Reggie Fils-Aime, president of Nintendo America.
“There were high expectations from the new version of the Wii and this fell far short,” Yusuke Tsunoda, an analyst at Tokai Tokyo Securities Co., said by phone today. “People had expected to see something more at a big event like the E3, but there wasn’t really anything more than what’s already reported.”
President Satoru Iwata needs the WiiU to revive sales as Kyoto, Japan-based Nintendo’s deliveries have been shrinking for two years. Makers of dedicated hardware including Nintendo and Sony Corp. (6758) face added competition from mobile device makers such as Apple Inc. (AAPL), and from games played on social websites including Facebook Inc.
Nintendo tumbled 5.7 percent to 16,930 yen at the close of trading in Osaka. More than 2.2 million shares changed hands, compared with a six-month daily average of about 720,000.
http://www.bloomberg.com/news/2011-06-08/nintendo-falls-amid-questions-whether-new-console-can-repeat-wii-s-success.html
It is kind of big news today on the stock market and not the first time this year for Nintendo (after the 3DS results didnt make the expectations true).
