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Forums - Nintendo - Nintendo stock drops to its lowest in 3 years

Destroyer_of_knights said:
Asriel said:
Yes, the Wii is doomed, and Nintendo will go bankrupt, just like they did when the Gamecube failed and the PSP was announced and was ready to take Nintendo's handheld crown from them...

Oh... wait a minute here...

Oh. I see. I see now.

Ah, you do realise that the gameboy essentially kept Nintendo afloat during the N64 and GameCube days right?

Also you speak as if PSP didn't affect Nintendo, but Sony's 1st entry into the hand held did a might fine job of  taking away about 31% of it's market share, remember before the PSP came in Nintendo all but dominated the hand held market with almost 100% market share...So I'd say Sony PSP took a good 31% of that crown.

Talk about someone else being a fanboy! Yet look at your post. It's not like your being unbiased.

 

On topic:

Nintendo never releases a console that will incur losses. That's why their business is successful. The N64 and the Gamecube both made profits on hardware and on software. Therefore it's not only the Gameboy that kept them a float. Their portable consoles are the icing on the cake. They've been strong and profitable since the original Gameboy. This gen has been no different with the DS and it's competition with the PSP. Market Share will fall anytime an alternative is offered in a market. That's nothing new. but you can keep using it if it makes you feel good.

 

Stocks will rise and fall. That's the nature of the stock market and that is why it is so unpredictable. Rarely will stock retain a high value for a long period of time.



If Nintendo is successful at the moment, it’s because they are good, and I cannot blame them for that. What we should do is try to be just as good.----Laurent Benadiba

 

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Temporary dip in Nintendo's stock means it's a damn good time to buy some Nintendo stock. Investors know that too.

The DS is going to sell more than any Game Boy (or Playstation for that matter) ever has ... yeah thanks Sony for the "competetion", lol. The DS has trounced the PSP in every market ... PSP being "the next Game Boy" sure worked out for them. All they did was awaken a sleeping dragon. 



Soundwave said:

Temporary dip in Nintendo's stock means it's a damn good time to buy some Nintendo stock. Investors know that too.

The DS is going to sell more than any Game Boy (or Playstation for that matter) ever has ... yeah thanks Sony for the "competetion", lol. The DS has trounced the PSP in every market ... PSP being "the next Game Boy" sure worked out for them. All they did was awaken a sleeping dragon. 

 

Then you should put your money where your mouth is and buy those stocks :P

The majority of the DS sales are behind it so I don't see how the fact that it can still sell 30 or 50 millions units in its life should affect stock that much........

 



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

PS3-Wii gap : 20 millions and going down !

dolemit3 said:
Nintendo Wii's house of cards is about to be blown away this September.

Negative Wii sales confirmed!

As the majority of voters have already said, watch out Wii... Sony's back!



Oh yes, the stock market drop isn't effecting this at all, no.

You can't blame the lose of momentum of the economic downturn. You can, however, explain stock drops on the stock market. In 2006, the stock market was still going up. It being lower from 2006 to 2009 does not means they are as good or worse then what they were in 2006. Profits can measure this. Look at their next financial statement for the year's end to see how well they are doing.



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PS3 price drop has weakened the bubble. It is simply a matter of time before it bursts.



Destroyer_of_knights said:
Asriel said:
Yes, the Wii is doomed, and Nintendo will go bankrupt, just like they did when the Gamecube failed and the PSP was announced and was ready to take Nintendo's handheld crown from them...

Oh... wait a minute here...

Oh. I see. I see now.

Ah, you do realise that the gameboy essentially kept Nintendo afloat during the N64 and GameCube days right?

Also you speak as if PSP didn't affect Nintendo, but Sony's 1st entry into the hand held did a might fine job of  taking away about 31% of it's market share, remember before the PSP came in Nintendo all but dominated the hand held market with almost 100% market share...So I'd say Sony PSP took a good 31% of that crown.

You do realize that the "Gameboy kept Nintendo alive" canard is just that--a canard, right? Did you actually pay any attention to Nintendo during those years (and by that I mean: did you actually follow their quarterly and annual reports? Did you see how many copies of Nintendo-branded games moved during, especially, the N64 years?) or are you just propagating the conventional (and utterly false) wisdom in a desperate effort to make some sort of specious argument?

Neither of those machines [N64 & GC] and their games lost money for the company because, unlike Sony and MS and Sega, Nintendo wasn't suicidally-bent on sacrificing profit for market share--something you'd know if you actually weren't just reeling off made-up nonsense.

Some of us were actually alive and paying very close attention at those times, and what you state here is idiotic, revisionist history.




As i see it, there are three things nintendo can do

1- they need more high profile games
2- they need a price cut >_



famousringo said:
Serious question for the financial wizards out there: If a company is sitting on tons of cash, more than enough to pursue any future operations and expansions it might make, does its stock price really matter?

I'm guessing that the only real danger is a shareholder revolt booting people off the board, which doesn't seem likely in this case unless Yamauchi decides Iwata is incompetent. Is there anything else?

I'm not a financial wizard, but off the top of my head the only dangers of a too low stock value are:

1- Harder to raise cash by selling stocks of your company.

2- Higher risk of getting taken over in a hostile way.

3- the one you mentioned.

Number 1 is not a problem for Nintendo as they have plenty of cash and few fixed expenses (few employees, few or none factories owned by them).

Number 2 should not be a problem either, after all Nintendo's stock has been much lower than it is today and they never got taken over... they're a stable company and shareholders know that.

Number 3 shouldn't happen either.

As for Nintendo's low stock value right now, one of the big reasons is the strength of the yen relative to the Euro and Dollar. I sold all my Nintendo stock when I realized that I was gambling more on currency exchange rates than on Nintendo's business itself.

Another reason may be the lower Wii sales compared to last year, of course, but the recession is affecting almost every company.

 



My Mario Kart Wii friend code: 2707-1866-0957

Ail said:
Soundwave said:

Temporary dip in Nintendo's stock means it's a damn good time to buy some Nintendo stock. Investors know that too.

The DS is going to sell more than any Game Boy (or Playstation for that matter) ever has ... yeah thanks Sony for the "competetion", lol. The DS has trounced the PSP in every market ... PSP being "the next Game Boy" sure worked out for them. All they did was awaken a sleeping dragon. 

 

Then you should put your money where your mouth is and buy those stocks :P

The majority of the DS sales are behind it so I don't see how the fact that it can still sell 30 or 50 millions units in its life should affect stock that much........

 

I actually am looking to buy some Nintendo stock for sure. $33.50 a share is still very, very friggin' expensive though, it's not cheap at all. Nintendo stock is still more than Microsoft stock (24.65 share price) or Sony stock (26.74) even right now. The main reason I would invest in Nintendo is because they're a very stable business. They don't ever take a loss on anything and have a stable of franchises that continually print money and they are don't take wild risks either. So as an investment you could do a lot worse.

And I suspect they make some (edit: a lot of) money off the Wii too ... lol, you don't sell 50 million of those at a profit per unit and a bazillion copies of Mario Kart, Wii Fit, etc. without taking a tidy sum. The Wii sells more software than the DS does in North America and Europe, way more.