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Forums - Nintendo - Nintendo Stock Lowest Since May After Price Drop Announced

think-man on 30 August 2013

Nintendo Co. (7974) fell the most since May after the company cut the price of its Wii U video-game console by $50 as it attempts to boost sales in the months before competing machines are released.

Nintendo fell 6.1 percent, the biggest drop since May 23, to 11,120 yen at the close in Tokyotrading. The stock had gained 31 percent this year through yesterday’s close, compared with the 30 percent jump in the broader Topix index. Nintendo announced the price cut at the same time it said it would introduce the Nintendo 2DS, an entry-level portable game player that can run the same games as its 3DS and costs just $129.99.

Enlarge image

A boy uses a Nintendo Co. 3DS handheld player to take a photograph of penguins swimming in a tank at an aquarium in Tokyo. Photographer: Tomohiro Ohsumi/Bloomberg

“The stock market didn’t think highly of the price cuts and the introduction of the 2DS,” said Tomoaki Kawasaki, an analyst atIwai Cosmo Holdings Inc. (8707) in Tokyo.

The suggested price of the Wii U in the U.S. will drop to $299.99 on Sept. 20, Kyoto, Japan-based Nintendo said Aug. 28 in a statement. The company won’t lower the console’s cost in Japan, where it sells for a suggested 30,000 yen ($307). The 2DS portable machine will go on sale Oct. 12.

 

 

Heading gracefully stolen from the commenter on this article :P

http://www.bloomberg.com/news/2013-08-30/nintendo-falls-most-since-may-after-wii-u-price-cut-tokyo-mover.html



 

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bobgamez on 30 August 2013

okay



_crazy_man_ on 30 August 2013

This probably because investors aren't happy about being told mixed messages.

For months Nintendo has said "no price drop".

Then all the sudden Nintendo says "price drop in 4 weeks".

While potential buyers love it, investors might not.



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DamnTastic on 30 August 2013

normal stock reactions.
A price-cut usually means that hardware is doing bad.

Still doesn't take away the fact that compared with the wii the wii u has no chance.

 

Edit: totally not as low as may??? 

 

btw the lowest point was in june



the_dengle on 30 August 2013

The stock isn't the lowest it's been since May. It's the greatest drop in a single day since May. The stock was much lower than this in June.

I would change the title to simply "Nintendo Stock Drops After Wii U Price Drop Announcement"



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pokoko on 30 August 2013

Didn't they tell investors earlier that the price wasn't a problem and there would be no price cuts?



POE on 30 August 2013
the_dengle said:

The stock isn't the lowest it's been since May. It's the greatest drop in a single day since May. The stock was much lower than this in June.

I would change the title to simply "Nintendo Stock Drops After Wii U Price Drop Announcement"


This



MDMAlliance on 30 August 2013
pokoko said:
Didn't they tell investors earlier that the price wasn't a problem and there would be no price cuts?


It is weird... kind of what happened with the 3DS XL.  Maybe Nintendo wants to give a shock and is willing to lie for it so it gets more publicity?



Mr Khan on 30 August 2013
_crazy_man_ said:
This probably because investors aren't happy about being told mixed messages.

For months Nintendo has said "no price drop".

Then all the sudden Nintendo says "price drop in 4 weeks".

While potential buyers love it, investors might not.

The cynical thought is that a smart investor would have known that a price drop was inevitable, and not care about this

The "hope for humanity" thought is that smarter investors realize this will aggravate the losses Nintendo takes on Wii U hardware at least in the short term.



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JoeTheBro on 30 August 2013
Mr Khan said:
_crazy_man_ said:
This probably because investors aren't happy about being told mixed messages.

For months Nintendo has said "no price drop".

Then all the sudden Nintendo says "price drop in 4 weeks".

While potential buyers love it, investors might not.

The cynical thought is that a smart investor would have known that a price drop was inevitable, and not care about this

The "hope for humanity" thought is that smarter investors realize this will aggravate the losses Nintendo takes on Wii U hardware at least in the short term.

The realistic thought is that investors are all selling and will just buy again at a lower price if the price drop seems to be working. That's evil investor 101!



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