In recent weeks, Nintendo's market cap has been imploding, because investors don't look at unit sales, they know that if Nintendo needs to make price cuts to have any good unit sales next year, their profit margins will implode and there is no reason to be an investor of that company. We are looking at an era where only permanent or regular discounts will move console sales, which means these console companies will not be attractive investment targets anymore.

Wow, what you are saying has a lot implications that you cant just focus on their traditional videogame division, Nintendo brand has been branching out beyond that.

But hey, I wont ruin your moment. You really want to the keep the flame running to write something completely off topic and also quoting a post with no correlation either

Spain showed sales for PS5 were up year on year. So our figures should be okay enough for mainland Europe. Maybe a little high for France and Germany. UK though we do have too high even if the report doesn't include Black Friday, which should be up due the big discount. I'll adjust our figures and update the Europe and worldwide articles on the front page. 

The other consoles should be fine or only a little bit off.

Yes, but Pro probably accounts for upwards of 50% of PS5 sales prior to Black Friday with majority of that happening on launch week. 

For context in Japan PS5 Pro sold 78,086 during its launch week (compared to the regular selling 10k), but then sold only 13k the week after (compared to regular selling 11k). Essentially the system launching would have front loaded a lot of sales compared to a normal November and made the early month abnormally strong. 

50% is even an extreme lowball

The PS5 drop is not too bad considering the Pro launched last year.

But the PS5 being up on Black Friday week is a great sign. Europe has the strongest discounts for Sony this year, and their active for most of December, with many markets being price sensitive. 

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.

Those problems aren't necessarily as major for Sony. 

For one, Sony is more than just PlayStation, and they would still make billions in profit without Sony Interactive. But more importantly, Sony eating the cost of hardware losses for a quarter, to get people into their ecosystem, is largely valuable and extremely profitable in the long run. I would also wait until official financial results are out before worrying about imploding profits lol. Stock prices fluctuate everyday. 

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

I think the main problem for Nintendo is that hardware sales make up an incredibly big part of their yearly profits, which investors know, meaning less profit from hardware and Nintendo's profit margins is over. Sony is probably less affected of course. F2p companies boycotting Nintendo means Nintendo is not primed for the new f2p dominated gaming landscape.