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Forums - Nintendo Discussion - Nintendo Shares Level Out After $4 Billion Drop in Company Value

Dunban67 said:

I did not think i would need to spell it out any more clearly but the marketability/sales ability of the game equals potential revenue/potential profits

Thwe market trades on a forward basis of what it thinks can/may happen in the future and when it may happen-  a key product the market hopes will bring in revenue growth and or profits in the future that is disapointing to the maret causes a drop as much as a delay perhaps more-  

The delay and the sales/marketablity (real or percieved) and the earnings miss combined hurt the confidence of investors -   

PS:  When I say investors "care" about the game it is in terms of thier confidence in it not weather or not they may like to play it themselves-   They "care" very much just not in the same manner a gamer or Nintendo fan may "care"

That makes more sense but the nature of the app is more of a factor then what you say because it's free for a start, investors were hoping for a big IP to be sold to consumers for more immediate returns. Miitomo is more to bring people on board to the new account system and acts as a hub for apps and games, it connecting to consumers won't be an issue it just so far hasn't shown how it'll bring in profits and that's what has investors backing off for now.

The sales ability is not the issue it's that it's not what investors were initially hoping for to begin with, it's nature and delay means expected profit won't come as soon as expecting because the app is a long term plan to build a dedicated number of users as opposed to selling minigames and microtrasactions for immediate returns.



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Stocks are not silly and they are long therm oriented. They expected Nintendo to move to mobile with AAA games and valued the future expected revenue in the stock price. Since Nintendo does not seem to take the mobile business seriously enough, the expected future revenue is much lower and therefore the stock price falls.



Gotta love that ridiculous sky-is-falling mentality of the market.



Wyrdness said:

What they want is big IPs with microtransactions.


Wow, almost like you are acknowledging they are disappointed in Miitomo at last?

 

etking said:
Stocks are not silly and they are long therm oriented. They expected Nintendo to move to mobile with AAA games and valued the future expected revenue in the stock price. Since Nintendo does not seem to take the mobile business seriously enough, the expected future revenue is much lower and therefore the stock price falls.

 

THIS. This isn't what they thought they were getting. As a Nintendo fan, it's not what I thought I was getting. And if you are telling yourself your honest reaction was 'AWESOME! I'll finally be able to learn more about the people around me, with a Nintendo flair that only Miis can provide! This is better than Zelda/Mario/Wii Sports/Splatoon/Metroid,' then you are lying to yourself and to us.



There are two possible conclusions to take from this; either the stock market is bribed by the competition and/or unfair, illogical and useless, or; the announcement was a negative double whammy in being both about a delay of a much, much needed investment boost in a new and more easily profitable sector of gaming paired with the software itself being generally underwhelming.

Personally, since I never bought the famed Nintendo conspiracy that many seem to cling to since we wielded bow and arrow and wore pelts on our backs during winter, I choose to believe the latter and chalk this down to pure market logic and response, just like every other downturn since the announcement and release of the Wii U and the decline in dedicated handhelds set in.



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Dr.Henry_Killinger said:
Ka-pi96 said:
Delay a mobile game = $4 billion loss in value.

Yeah, stocks are silly

Delays inspire a lack of confidence, especially when this mobile game strategy was supposed to turn things around.

Expecting delays, encourages the poor planning that leads to them. Delays should be penalized, especially in this case. Where it's not just a game delay, its the delay of the entire mobile strategy if you will, a false/late start.

And as anyone who has ever run track before knows, if you have a false or late start,

Can I quote you? Your speech about delays is perfect and I agree with every word you posted.



Proud to be the first cool Nintendo fan ever

Number ONE Zelda fan in the Universe

DKCTF didn't move consoles

Prediction: No Zelda HD for Wii U, quietly moved to the succesor

Predictions for Nintendo NX and Mobile


VitroBahllee said:
Wyrdness said:

What they want is big IPs with microtransactions.


Wow, almost like you are acknowledging they are disappointed in Miitomo at last?

 

ide! This is better than Zelda/Mario/Wii Sports/Splatoon/Metroid,' then you are lying to yourself and to us.

 

My first reaction was "how is this gonna make money? Let's think as a bussiness man..."

Then, I was dissapointed it was not something with big IP's involved.

Anyway, I think the problem is the lack of info, because some of us are speculating that Miitomo is more like a "hub" where you can interact and play games with other Miis. Maybe those games will feature Link, or Mario or Samus. Something like Nintendo Land.



Proud to be the first cool Nintendo fan ever

Number ONE Zelda fan in the Universe

DKCTF didn't move consoles

Prediction: No Zelda HD for Wii U, quietly moved to the succesor

Predictions for Nintendo NX and Mobile


Pavolink said:

...some of us are speculating that Miitomo is more like a "hub" where you can interact and play games with other Miis. Maybe those games will feature Link, or Mario or Samus. Something like Nintendo Land.


Possible that it will eventually be that way, but why give Nintendo credit for something they haven't done? Why tax your imagination as a fan to try to come up with some imaginary reason why this thing will some day appeal to you, once things that haven't been announced have been added in? Nintendo is supposed to entertain you. You pay them good money and provide them with solid careers. You don't owe them a thing. They are a unique company, in that they get into their fans' heads in childhood, become associated with 'goodness' and 'purity,' and then as we get older, we are so addicted to the idea that there is goodness and purity in this world that we stand up for them and make up bizarre excuses and imagine alternate worlds in which everything they do is good and right and just and true. I was in that cycle for a while, but I haven't been for years. If I like a game they make, I am glad. But I do not force myself to make up excuses for them or to 'imagine' that 'maybe' somehow there will be infinite value in everything they release. Game and Wario was crap. Wii Party U was crap. They are not magical gods.



Mummelmann said:
There are two possible conclusions to take from this; either the stock market is bribed by the competition and/or unfair, illogical and useless, or; the announcement was a negative double whammy in being both about a delay of a much, much needed investment boost in a new and more easily profitable sector of gaming paired with the software itself being generally underwhelming.

Personally, since I never bought the famed Nintendo conspiracy that many seem to cling to since we wielded bow and arrow and wore pelts on our backs during winter, I choose to believe the latter and chalk this down to pure market logic and response, just like every other downturn since the announcement and release of the Wii U and the decline in dedicated handhelds set in.

The stockmarket is very volatile. Such short term changes don't say a whole lot. I can guarantee you that by the time they announce their next smartphone games to stock will rise a lot. Your post really makes no sense at all as nobody has claimed your first scenario. A lot of investors are driven by FUD, which means they're not very good investors to begin with. That's reality: only very few people are good at investing money. Now's a good time to buy Nintendo stock and sell it when they announce Mario is coming to smartphones.



"The strong do what they can and the weak suffer what they must" - Thoukydides

VitroBahllee said:
Pavolink said:

...some of us are speculating that Miitomo is more like a "hub" where you can interact and play games with other Miis. Maybe those games will feature Link, or Mario or Samus. Something like Nintendo Land.


Possible that it will eventually be that way, but why give Nintendo credit for something they haven't done? Why tax your imagination as a fan to try to come up with some imaginary reason why this thing will some day appeal to you, once things that haven't been announced have been added in? Nintendo is supposed to entertain you. You pay them good money and provide them with solid careers. You don't owe them a thing. They are a unique company, in that they get into their fans' heads in childhood, become associated with 'goodness' and 'purity,' and then as we get older, we are so addicted to the idea that there is goodness and purity in this world that we stand up for them and make up bizarre excuses and imagine alternate worlds in which everything they do is good and right and just and true. I was in that cycle for a while, but I haven't been for years. If I like a game they make, I am glad. But I do not force myself to make up excuses for them or to 'imagine' that 'maybe' somehow there will be infinite value in everything they release. Game and Wario was crap. Wii Party U was crap. They are not magical gods.

I just love to speculate about Nintendo. Like how Zelda HD is moved to NX quietly, or how NX is Fusion with different forms: handheld, console, tablet, etc.



Proud to be the first cool Nintendo fan ever

Number ONE Zelda fan in the Universe

DKCTF didn't move consoles

Prediction: No Zelda HD for Wii U, quietly moved to the succesor

Predictions for Nintendo NX and Mobile