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


Comments

Re: Nintendo Stocks Continue Decline on 3DS Fears

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

Feel free to check out my blog.

Re: Nintendo Stocks Continue Decline on 3DS Fears

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

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

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

 
Forgot your password?
Username :
Password :

Shout box

You're not permitted to post shouts.
MattsworknameSo, whats everyone playing? Im still knee deep in bloodborne, but finaly beat Rom the spider05/23/2015 - 7:20am
Andrew EisenWe're planning on doing the podcast Saturday evening, as usual.05/23/2015 - 12:32am
Matthew Wilsonmy bad was doing it from my phone.05/22/2015 - 11:34pm
Goth_SkunkMatthew, that's a PDF. Looks like a lobbying report. What's that got to do with The Witcher 3? EDIT: Thanks Mecha.05/22/2015 - 11:33pm
MechaCrashI think this is the link you meant to post: http://www.gamespot.com/videos/the-point-the-witcher-3-a-new-benchmark-in-player-/2300-6424964/05/22/2015 - 11:31pm
Matthew WilsonThe Point - The Witcher 3: A New Benchmark in Player Choice http://www.gamespot.com/videos/the-point-the-witcher-3-a-new-benchmark-in-player-/2300-6424964/ fixed05/22/2015 - 10:37pm
Matthew WilsonI assume no show this weekend?05/22/2015 - 10:27pm
TechnogeekKaylaKaze: I fail to see how "that key was obtained via theft by deception" isn't fradulent.05/22/2015 - 8:46pm
Wonderkarp*Sippin on Long Island Iced Tea*05/22/2015 - 8:24pm
james_fudgeIT was all me. I broke the site. Send your hatemail!05/22/2015 - 8:15pm
KaylaKazeESO banning people for buying thier game when it was cheap, claiming fraud. http://www.reddit.com/r/elderscrollsonline/comments/36womu/deactivation_of_fraudulently_obtained_esotu_game/05/22/2015 - 5:29pm
Matthew Wilsonwtf? wounder if its time for a site redo with modern tech. somthing cheap like the latest version of word press.05/22/2015 - 5:27pm
Andrew EisenJames pasted my copy into a new story for me and the crappy Word formatting it inherited broke the site.05/22/2015 - 5:21pm
Andrew EisenHere's what happened: some weird bug is preventing me from uploading an article pic. Stories can't be saved with out pics so I couldn't write a story. So, I wrote it in Word and pasted the text into an email and forwarded it to James.05/22/2015 - 5:21pm
Goth_SkunkThanks E-Zeek.05/22/2015 - 5:09pm
E. Zachary KnightI fixed the shoutbox. Everyone thank me now. Or not. I don't care either way.05/22/2015 - 5:07pm
ZippyDSMleeShout box sttasahhppppp!!05/22/2015 - 10:47am
Andrew EisenOh, here it is. I thought it was gone. Yeah, I'm experiencing the same issue. Sent a note to tech.05/22/2015 - 10:43am
E. Zachary KnightAnyone else have the shout box pushed down to the bottom of the site?05/22/2015 - 10:38am
MattsworknameAndrew and EZK help me pull back a bit , still working on it05/22/2015 - 7:06am
 

Be Heard - Contact Your Politician