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Forums - Sales Discussion - Sony on Vita sales: "we do not think we have any problems"

sepoer on 04 February 2012

Vita only need a game.
And don't let Nintendo alone facing the mobile gaming market which mean the industry really need Vita right now.



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theprof00 on 04 February 2012
scottie said:
theprof00 said:
scottie said:
theprof00 said:
scottie said:
Joelcool7 said:
 I couldn't see Sony saying "oh man we are fucked lets hope we can pull off the international launch and save our asses" third parties would cut development over night as they did with 3DS. S


Investors aren't (generally) as dumb as you make them sound. When the 3DS was doing almot this bad, Nintendo said that they had a problem, and that they were taking steps to fix it. Most investors will prefer to see that than a company with their head buried in the sand.


yet their stock kept going down.

 

In the 188 days prior to the 3DS price cut, Nintendo stock has dropped $14.03, or 39% of its previous value.
In the 189 days since the 3DS price cut, Nintendo stock has dropped $5.07, or 23% of its previous value.

 

To me, that correlates perfectly with a move welcomed by investors.

That time period shows nothing of relevance to a press release, and everything to do with actually cutting the price.
Yeah in fact, the day of the announcement was a HUGE drop from above 22 to under 20, then the very day after the price cut, it starts picking up a bit.


So you're saying investors were responding to Nintendo solving the problem, as opposed to responding to Nintendo saying they were solving the problem?

 

That's not a rhetorical question by the way, if I'm wrong, you may need to explain your point again.

 

If I'm right that that was your point, it seems like semantics really and I doubt investors will respond well to Sony's "we do not think we have any problems" line.

Bolded. You said investors act more kindly to companies admitting a problem and saying they are fixing it, yet they kept losing stock when they actually said that.

Underlined. They responded to seeing a solution occur. They did not respond well to hearing Nintendo say there was a problem.

Not semantics, as your whole point is Most investors will prefer to see that than a company with their head buried in the sand.



snowdog on 04 February 2012

There just aren't that many Vita titles that attract my interest. LittleBigPlanet and Uncharted, and that's about it. The 3DS offers so much more for me personally, I already have Rayman 3D, Ocarina of Time, Resident Evil Mercenaries 3D and Super Street Fighter IV and I'm getting Resident Evil Revelations on Monday. I've also bought Let's Golf 3D and Zen Pinball from the eShop.

No decent software, an expensive console and piss-taking prices of storage add up to me not even thinking about buying a Vita on the 22nd. I'll wait for it to fail as badly in Europe and the States as it has in Japan so far and wait for the Nintendo-esque panic price drop in 6 months time I think lol.



megaman79 on 04 February 2012
theprof00 said:
scottie said:
Joelcool7 said:
Well Sony needs to reassure stock holders and developers. I couldn't see Sony saying "oh man we are fucked lets hope we can pull off the international launch and save our asses" third parties would cut development over night as they did with 3DS. Sony needs to do major damage control they do not want to hurt the international launch. They won't admit any failure till two or so months after Vita's is available in all regions.


Investors aren't (generally) as dumb as you make them sound. When the 3DS was doing almot this bad, Nintendo said that they had a problem, and that they were taking steps to fix it. Most investors will prefer to see that than a company with their head buried in the sand.


yet their stock kept going down.


Apple is a dangerous competitor, and at the end of the day pretty much EVERY electronic company is being compared to it.



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

NintendoPie on 04 February 2012
RolStoppable said:
Nintendo on Vita sales: "We do not think we have any problems."

At first I did not get it. Then it clicked... LOL! I really do love your comments Rol. 



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HappySqurriel on 05 February 2012
theprof00 said:
scottie said:
Joelcool7 said:
Well Sony needs to reassure stock holders and developers. I couldn't see Sony saying "oh man we are fucked lets hope we can pull off the international launch and save our asses" third parties would cut development over night as they did with 3DS. Sony needs to do major damage control they do not want to hurt the international launch. They won't admit any failure till two or so months after Vita's is available in all regions.


Investors aren't (generally) as dumb as you make them sound. When the 3DS was doing almot this bad, Nintendo said that they had a problem, and that they were taking steps to fix it. Most investors will prefer to see that than a company with their head buried in the sand.


yet their stock kept going down.


People who buy and sell stock on the short term and are heavily focused on corporate announcements are not investors; they're speculative traders. The primary difference is an investor will buy a stock thinking of how the company will grow over the next 5 years, while a speculative trader is looking for what they will be able to sell the stock for in 6 weeks.

The initial decline in the price of Nintendo stock was from investors selling because they had doubts Nintendo would have 2 100+ Million selling systems next generation, and the more recent decline is from speculative traders selling (or selling short) because they new Nintendo wouldn't make their quarterly earnings. I suspect that you haven't seen investors buy in yet because they're much more careful about their investments, and are evaluating and re-considering where Nintendo will be in 2017.



Zlatan.R on 05 February 2012

I know I'm definitely getting a ps vita



abhiram_33 on 05 February 2012

i hope it does well, i pre-ordered mine for the first edition



theprof00 on 05 February 2012
HappySqurriel said:
theprof00 said:
scottie said:
Joelcool7 said:
Well Sony needs to reassure stock holders and developers. I couldn't see Sony saying "oh man we are fucked lets hope we can pull off the international launch and save our asses" third parties would cut development over night as they did with 3DS. Sony needs to do major damage control they do not want to hurt the international launch. They won't admit any failure till two or so months after Vita's is available in all regions.


Investors aren't (generally) as dumb as you make them sound. When the 3DS was doing almot this bad, Nintendo said that they had a problem, and that they were taking steps to fix it. Most investors will prefer to see that than a company with their head buried in the sand.


yet their stock kept going down.


People who buy and sell stock on the short term and are heavily focused on corporate announcements are not investors; they're speculative traders. The primary difference is an investor will buy a stock thinking of how the company will grow over the next 5 years, while a speculative trader is looking for what they will be able to sell the stock for in 6 weeks.

The initial decline in the price of Nintendo stock was from investors selling because they had doubts Nintendo would have 2 100+ Million selling systems next generation, and the more recent decline is from speculative traders selling (or selling short) because they new Nintendo wouldn't make their quarterly earnings. I suspect that you haven't seen investors buy in yet because they're much more careful about their investments, and are evaluating and re-considering where Nintendo will be in 2017.


now that's semantics.

The question here is, "is saying there is a problem and fixing it better than not ackowledging it to the public, yet fixing it nonetheless".I would agree that it's possible that selling short has something to do with it, however, selling short requires you to buy back the stock once it has gone down, and without the rebound, it's presumable that the short seller influence here was minimal.