Nintendo Stocks Continue Decline on 3DS Fears

September 9, 2011

Nintendo stocks declined 2.3 percent - the biggest decline in more than two weeks - in Osaka trading on the growing concern that price cuts to the 3DS will not do enough for the company to meet its full-year sales target. Nintendo stock fell 2.3 percent to 13,160 yen, the biggest drop the company has seen since August 24. Overall, the stock has declined 45 percent this year.

Investors are worried because the company was projected to sell 16 million 3DS systems by the year ending March 31, 2012. In July the company slashed the price of the 3DS by 40 percent, or $80, after sales fell far short of the company’s expectations.

“Nintendo must adjust its expectations in a world increasingly dominated by smartphones and tablets,” said Michael Pachter, an analyst at Los Angeles-based Wedbush Securities Inc to Bloomberg. “Nintendo will have two-thirds as much success in handhelds and consoles as in the past.”

The company sold about 235,000 units of the 3DS in the U.S. in August, About 185,000 of those units were sold after the price was cut to $169.99 on Aug. 12. Sales of the 3DS in Japan totaled around 55,000 units in the seven days ended Sept. 4, according to the Enterbrain. The figure is 74 percent fewer than sales made in the second week of August when Nintendo cut the price.

Source: Bloomberg

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Comments

Re: Nintendo Stocks Continue Decline on 3DS Fears

Submitted by Austin from Oregon on Mon, 09/12/2011 - 12:09.

I'm suprised that they even bet on 3D when 3D TV sales are so bad. Even without the glasses, its been around and no ones been that impressed.

-Austin from Oregon

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Re: Nintendo Stocks Continue Decline on 3DS Fears

Submitted by The Hangd Man on Mon, 09/12/2011 - 00:15.

Methinks Nintendo overestimated it's own popularity and salability of it's products due to the Wii. The Wii was popular because it was cheap and it promoted exercise (or at least appeared to) with many of it's games. The price point for a lot of the games was also cheaper than the current price point of 3ds games.

Their other big problem with the market they're competing in. With the Wii, they were fighting against the 360 and the PS3. With the 3DS, their main competition isn't the PSP, but the Apple iPhone, iPad, and various Droid phones and Pads. They may have had a corner on the portable market for years, but with the massive popularity of flash games being played on phones for free or a dollar, it's a lot harder to convince the 'casual' gaming market to buy a dedicated portable for gaming.

I hate broccoli/ and think it totally sucks/ Why isn't it meat?

Re: Nintendo Stocks Continue Decline on 3DS Fears

Submitted by Vake Xeacons on Sat, 09/10/2011 - 08:25.

They sold 235,000 units. That's still not a lot, especially worldwide. And we're only talking less than a month on increase; even the Titanic thought they had the incoming water under control for a moment. Point being, sales have spiked before only to drop again. I'm hoping this (and the fall line-up) means a turnaround for our beloved handheld, but we can never be sure. Keep your fingers crossed.

Re: Nintendo Stocks Continue Decline on 3DS Fears

Submitted by Grif on Fri, 09/09/2011 - 16:15.

And yet, unit sales have increased by 260% since the price dropped. Curiouser and curiouser...

Atlanta Video Games Examiner for examiner.com

Shout box

Cecil475: @PHX Corp - The dude's a moron who wouldn't know crap if it came up and kicked him.05/19/2013 - 6:36am

PHX Corp: http://kotaku.com/ea-sports-developer-calls-wii-u-crap-and-nintendo-wa-508481261 EA Sports Canada Moron calls Wii U 'Crap' and Nintendo 'Walking Dead'05/18/2013 - 11:42am

E. Zachary Knight: If the videos are of sufficient quality that people subscribe and watch regularly, then those let's players are providing a service that people want. That is the heart of capitalism. That is not something that should be shamed.05/17/2013 - 8:06am

E. Zachary Knight: I have no idea who either of those people are. However, I still don't see why making a business out of creating let's play videos is somehow evil or wrong.05/17/2013 - 8:04am

MaskedPixelante: It sure is if you're just doing it for the money. See Tobuscus and/or Pewdiepie for what happens when people get into it just for the money.05/17/2013 - 7:30am

E. Zachary Knight: Why is it wrong to make money doing LPs? Why should that be something that should be shamed?05/17/2013 - 6:20am

MaskedPixelante: https://twitter.com/PsychedelicSA/status/335183893214924801 Now here's an interesting, glass half full thought about the Nintendo LP thing. It outs the people who are just doing LPs to make money.05/17/2013 - 5:56am

E. Zachary Knight: I responded in writing to all this "let's play" stuff Nintendo Started. No need for my permission, I won't give it. It's not mine to give. http://divineknightgaming.com/?p=29205/16/2013 - 2:21pm

E. Zachary Knight: Lars Doucet of Levelup Labs has a Reddit going on game companies that allow monetization of Let's Play videos. http://www.reddit.com/r/Games/comments/1egayn/lets_build_a_list_of_game_studios_that_allow/05/16/2013 - 1:04pm

Sleaker: @Imautobot - yah I wouldn't use an emulator as a good first run test of how stable the console is, haha.05/16/2013 - 11:47am

E. Zachary Knight: The 50th person to jump off a bridge is just as dumb if not dumber than the 1st.05/16/2013 - 10:03am

MaskedPixelante: Yeah, let's all jump on Nintendo for doing this, even though they're hardly the first company to do this...05/16/2013 - 9:47am

E. Zachary Knight: Wow Nintendo, this is wrong. http://kotaku.com/nintendo-forcing-ads-on-some-youtube-lets-play-video-50709238305/16/2013 - 8:44am

Imautobot: @Sleaker, further gameplay has revealed that the controller button do stick under the faceplate. Also, The NES emulator (Emuya)keeps crashing on me, though I think a bad ROM is causing it.05/16/2013 - 7:10am

Papa Midnight: AE: I wonder if any other publishers will follow suit.05/15/2013 - 8:12pm

Andrew Eisen: EA is ditching Online Pass. http://venturebeat.com/2013/05/15/ea-kills-its-controversial-online-pass-program/05/15/2013 - 7:20pm

Avalongod: @Zach and quicnkold...I've read the bill and the intent of it is to fear-monger. It's not a balanced message. I don't recall the ESRB being mentioned at all. It's more "keeps your kids away from these movies/games or they'll become violent"05/15/2013 - 4:35pm

E. Zachary Knight: quiknkold, The big problem with that legislation is the amount of misinformation out there. Who is going to ensure that the information in the pamphlet is accurate?05/15/2013 - 3:25pm

quiknkold: REBeardogg : I'm on the fence about this. on one side, I want parents to be aware of the ESRB, and even Movie Ratings. On the other hand, I feel this will be used for nothing but Propaganda. The ESRB does a good job.05/15/2013 - 3:07pm

IanC: Frostbite is coming out on iOS devices. Yet the Wii U cant handle it? *coughbullshitcough*05/15/2013 - 2:31pm

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